India's annual defence production has surged to an all-time high of Rs 1.78 lakh crore in the financial year (FY) 2025-26, the defence ministry announced on Wednesday.
Record Growth Under PM Modi's Leadership
Defence Minister Rajnath Singh, in a post on X, credited Prime Minister Narendra Modi's leadership for the achievement. He stated, "Under the inspiring leadership of PM Modi, India's defence production is reaching new heights every year. I am delighted to inform everyone that India's annual defence production has surged to an all-time high."
This milestone represents an impressive 15.6% growth over the previous fiscal year's output of Rs 1.54 lakh crore and a staggering 110% increase since FY 2020–21, when the figure stood at Rs 84,643 crore. Indigenous defence production has increased nearly fourfold from Rs 43,746 crore in FY 2013–14.
Collective Efforts of Stakeholders
Lauding the efforts of defence departments and industry, the minister said, "The remarkable rise in India's defence production in recent years is the result of the collective efforts of the Department of Defence Production and all other stakeholders. This upward trajectory is a clear indicator of the country's expanding defence industrial base."
He added that with sustained policy support, several new initiatives, increased private sector participation, and growing export capabilities, the defence production sector is poised for continued acceleration in the years ahead.
Transformation Through Self-Reliance
India's defence capabilities have witnessed significant transformation over the last decade, guided by the vision of self-reliance and powered by innovation, technology, and indigenous manufacturing, Singh said.
Defence PSUs and other PSUs accounted for 76% of total production, while the private sector contributed 24%, a rise from 22% in FY 2024-25. The share of the private sector is at an all-time high of around Rs 42,000 crore in FY 2025-26, reflecting its expanding role in the defence ecosystem.
Boost to Exports and Aatmanirbhar Bharat
The growth in defence production has tremendously contributed to achieving record defence exports of Rs 38,424 crore in FY 2025-26. This achievement reflects the growing momentum of the government's push for self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative.
With sustained policy support, several new initiatives, increased private sector participation, and growing export capabilities, the defence production sector is poised for continued acceleration in the years ahead, Rajnath added.
