India’s Defence Production Reaches Record ₹1.78 Lakh Crore in FY 2025–26

India’s defence production has achieved a historic milestone, reaching an all-time high of ₹1.78 lakh crore in FY 2025–26, marking a 15.6% increase over the previous year’s output of ₹1.54 lakh crore. The achievement reflects a remarkable 110% growth compared to FY 2020–21, when defence production stood at ₹84,643 crore. Since FY 2013–14, indigenous defence production has nearly quadrupled from ₹43,746 crore.

Defence Public Sector Undertakings (DPSUs) and other public sector entities contributed approximately 76% of total production, while the private sector accounted for 24%, up from 22% in FY 2024–25. The private sector’s contribution reached a record ₹42,000 crore, underscoring its growing role in India’s defence manufacturing ecosystem.

The sustained rise in domestic production has also supported a record-breaking defence export figure of ₹38,424 crore in FY 2025–26. This progress highlights the success of the Government’s efforts to strengthen self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative led by Prime Minister Narendra Modi.

Defence Minister Rajnath Singh credited the achievement to the Prime Minister’s leadership and the collective efforts of the Department of Defence Production, public sector undertakings, and private industry. He noted that the continued growth in defence production demonstrates the expanding strength of India’s defence industrial base.

With ongoing policy support, greater private-sector participation, new initiatives, and rising export capabilities, India’s defence manufacturing sector is expected to maintain its strong growth trajectory in the coming years.