India’s Defence Production Reaches Record ₹1.78 Lakh Crore in FY 2025-26
New Delhi, June 17, 2026: India’s defence manufacturing sector has achieved a historic milestone, with annual defence production touching an all-time high of ₹1.78 lakh crore in the financial year 2025-26, reflecting the growing strength of the country’s indigenous defence ecosystem.
According to data released by the Ministry of Defence, the latest figure represents a 15.6 percent increase over the previous fiscal year’s production value of ₹1.54 lakh crore. The growth has been particularly remarkable over the last five years, with defence production more than doubling from ₹84,643 crore in FY 2020-21 and nearly quadrupling from ₹43,746 crore in FY 2013-14.
The defence manufacturing sector’s expansion has been driven by both public and private industry participation. Defence Public Sector Undertakings (DPSUs) and other public sector entities accounted for approximately 76 percent of total production, while the private sector contributed 24 percent, its highest-ever share. Private sector production reached around ₹42,000 crore during FY 2025-26, up from 22 percent in the previous fiscal year.
The surge in domestic production has also contributed significantly to India’s growing presence in the global defence market. Defence exports reached a record ₹38,424 crore during FY 2025-26, highlighting the country’s increasing capability to manufacture and supply advanced defence equipment to international partners.
The achievement is being viewed as a major success of the Government of India’s Aatmanirbhar Bharat initiative, aimed at strengthening self-reliance in defence manufacturing and reducing dependence on imports.
Reacting to the milestone, Defence Minister Rajnath Singh credited the leadership of Prime Minister Narendra Modi for driving the transformation of India’s defence production landscape. In a post on social media platform X, he praised the collective efforts of the Department of Defence Production, public sector undertakings, and private industry stakeholders for achieving the landmark figure.
The Defence Minister stated that the sustained growth reflects the rapid expansion of India’s defence industrial base. He expressed confidence that continued policy support, greater private sector participation, technological innovation, and expanding export opportunities would further accelerate growth in the sector in the coming years.
Industry experts note that the record production and export figures underscore India’s emergence as a significant player in global defence manufacturing, while reinforcing national security through enhanced domestic capabilities.
Source: PIB / Ministry of Defence
