Defence production hits record high of ₹1.78 lakh crore in FY 2025-26

New Delhi [India], June 17: India’s defence manufacturing sector has achieved a major milestone, with annual defence production reaching an all-time high count of ₹1.78 lakh crore in Financial Year (FY) 2025-26.

The record output marks a 15.6% rise compared to ₹1.54 lakh crore recorded in FY 2024-25 and reflects a massive 110% growth since FY 2020-21, when defence production stood at ₹84,643 crore.

Over the past decade, India’s indigenous defence production has grown nearly four times, increasing from ₹43,746 crore in FY 2013-14.

Private Sector Participation Reaches New Peak

The growth has been supported by both public and private players in the defence ecosystem.

Defence Public Sector Undertakings (DPSUs) and other PSUs contributed around 76% of the total defence production. Whereas the private sector contributed 24%, marking its highest-ever share. Private defence companies produced nearly ₹42,000 crore worth of defence equipment in FY 2025-26, up from 22% contribution in the previous fiscal year.

The increasing role of private companies highlights India’s expanding defence industrial base and growing participation from domestic manufacturers.

Record Defence Exports Strengthen Global Presence

The rise in defence production has also helped India achieve its highest-ever defence exports of ₹38,424 crore in FY 2025-26.

The achievement reflects the government’s continued focus on Aatmanirbhar Bharat and reducing dependence on foreign defence imports while promoting domestic innovation and manufacturing.

Rajnath Singh Hails Milestone

Defence Minister Rajnath Singh credited the leadership of Prime Minister Narendra Modi and praised the combined efforts of the Department of Defence Production, PSUs, and private industry for achieving the landmark.

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He said the record numbers show the growing strength of India’s defence manufacturing sector and its increasing global potential.

With continued policy support, new initiatives, higher private sector involvement, and rising export capabilities, India’s defence production sector is expected to maintain its growth momentum.

Ends.