Defence
Massive Surge! India’s defence production touches all-time high of Rs. 1.78 lakh crore in FY 2025-2026
India’s annual defence production has reached an all-time high of ₹1.78 lakh crore in the Financial Year (FY) 2025–26, marking a significant milestone in the country’s defence manufacturing sector.
According to the Ministry of Defence, this represents a 15.6% growth over the previous fiscal year’s output of ₹1.54 lakh crore, and a remarkable 110% increase since FY 2020–21, when production stood at ₹84,643 crore.
Defence production has also grown nearly fourfold from ₹43,746 crore in FY 2013–14, reflecting the sector’s long-term expansion.
Defence Public Sector Undertakings (DPSUs) and other PSUs accounted for approximately 76% of total production, while the private sector contributed 24%, up from 22% in FY 2024–25. The private sector’s output has reached an all-time high of around ₹42,000 crore in FY 2025–26, highlighting its growing role in India’s defence ecosystem.
This sustained growth in domestic production has also contributed significantly to record defence exports of ₹38,424 crore in FY 2025–26.
The achievement underscores the government’s continued push for self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative, led by Prime Minister Narendra Modi.
In a post on X, Defence Minister Rajnath Singh credited the leadership of Prime Minister Narendra Modi for taking India’s defence production to new heights. He also acknowledged the collective efforts of the Department of Defence Production along with public and private sector stakeholders in achieving this milestone.
Under the astute leadership of Prime Minister @narendramodi, India has witnessed a historic transformation in its national security architecture.
— Rajnath Singh (@rajnathsingh) June 17, 2026
From a policy of zero tolerance against terrorism to decisive actions such as Surgical Strikes, Balakot and Operation Sindoor, India… pic.twitter.com/qAIdrf9yJJ
He further noted that this upward trajectory reflects India’s expanding defence industrial base and its strengthening global position.
With sustained policy support, increased private sector participation, new initiatives, and rising export capabilities, India’s defence production sector is expected to continue its strong growth momentum in the coming years.
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