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

Convener News Desk 

New Delhi, June 17: India’s defence production reached a record ₹1.78 lakh crore during the financial year 2025-26, registering a growth of 15.6 per cent over the previous fiscal year’s output of ₹1.54 lakh crore, according to figures released by the Ministry of Defence.

 

The latest production figures mark a significant increase in indigenous defence manufacturing and reflect continued growth in the country’s defence industrial sector. The production value has more than doubled from ₹84,643 crore recorded in 2020-21 and is nearly four times higher than the ₹43,746 crore achieved in 2013-14.

 

According to official data, Defence Public Sector Undertakings (DPSUs) and other public sector units accounted for approximately 76 per cent of total defence production during 2025-26, while the private sector contributed 24 per cent.

 

The private sector’s contribution rose from 22 per cent in 2024-25 to an all-time high of around ₹42,000 crore during the latest fiscal year, indicating its growing participation in defence manufacturing and related activities.

 

The Ministry of Defence said the increase in domestic production has also contributed to India’s record defence exports of ₹38,424 crore during 2025-26. Officials described the growth as a reflection of ongoing efforts to strengthen self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative.

 

The government has introduced a series of policy measures in recent years aimed at enhancing indigenous production capabilities, encouraging private sector participation and reducing dependence on imports in the defence sector.

 

Reacting to the achievement, Defence Minister Rajnath Singh said the growth in defence production reflects the expansion of India’s defence industrial base. In a post on social media platform X, he credited the leadership of Prime Minister Narendra Modi and acknowledged the contributions of the Department of Defence Production, public sector enterprises and private industry in achieving the milestone.

 

The Defence Minister said the sustained growth trajectory demonstrates the impact of policy reforms, increased participation by private industry and the expansion of export capabilities within the sector.

 

Officials noted that the continued rise in domestic defence production is expected to strengthen India’s manufacturing ecosystem, generate employment opportunities and enhance the country’s position in the global defence market.

 

With increasing indigenous capabilities, greater industry participation and a growing export footprint, the defence production sector is expected to maintain its growth momentum in the coming years, according to the Ministry of Defence.