New Delhi, June 17, 2026: India’s annual defence production has achieved a historic milestone, reaching an all-time high of ₹1.78 lakh crore in the Financial Year 2025–26, marking a significant leap in the country’s push towards self-reliance in defence manufacturing.
According to official data, the latest figure reflects a 15.6 per cent increase over the previous fiscal year’s output of ₹1.54 lakh crore. Over a longer timeframe, the sector has recorded a remarkable growth of 110 per cent since FY 2020–21, when production stood at ₹84,643 crore. Compared to FY 2013–14, when indigenous defence production was ₹43,746 crore, the sector has nearly quadrupled, underscoring sustained expansion over the last decade.
The growth has been largely driven by the combined contribution of Defence Public Sector Undertakings (DPSUs) and private industry players. DPSUs and other public sector units accounted for nearly 76 per cent of total production, while the private sector contributed 24 per cent. The private sector’s share has increased from 22 per cent in FY 2024–25, reaching its highest-ever value of around ₹42,000 crore in FY 2025–26.
Officials noted that this rising participation of private industry reflects a structural shift in India’s defence manufacturing ecosystem, with greater integration of domestic firms into high-value production chains. The trend is also seen as a key indicator of India’s expanding industrial and technological capabilities in the defence sector.
The surge in production has also contributed significantly to defence exports, which reached ₹38,424 crore in FY 2025–26, further strengthening India’s position as an emerging defence exporter in the global market.
The government has attributed this achievement to sustained policy reforms, increased ease of doing business in defence manufacturing, and a strong push under the Aatmanirbhar Bharat initiative. These measures have encouraged both public and private sector investment in research, development, and production capacities.
Raksha Mantri Rajnath Singh, in a post on social media platform X, credited Prime Minister Narendra Modi’s leadership for the sector’s growth and praised the collective efforts of the Department of Defence Production along with public and private stakeholders.
He stated that the consistent upward trajectory in defence production reflects the expanding industrial base of the country. With continued policy support, technological advancement, and rising export potential, the sector is expected to maintain its momentum in the coming years, further strengthening India’s strategic and manufacturing autonomy.
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