India’s annual defence production has reached an all-time high of Rs 1.78 lakh crore in the financial year 2025-26, registering a 15.6 per cent increase over the previous year’s Rs 1.54 lakh crore and a 110 per cent rise since FY 2020-21, when production stood at Rs 84,643 crore. The Ministry of Defence announced the milestone on Wednesday (June 17), attributing the growth to higher indigenous manufacturing, greater private sector participation, and a surge in defence exports under the government’s ‘Aatmanirbhar’ Bharat (self-reliance) initiative.

Defence Minister Rajnath Singh welcomed the record, crediting Prime Minister Narendra Modi’s leadership and the collective efforts of stakeholders across the defence sector. In a post on X, Singh said, “Under the inspiring leadership of PM Shri @narendramodi, 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 of Rs 1.78 lakh crore in the Financial Year (FY) 2025-26.”

Private sector share hits all-time high of 24 per cent

According to the Ministry of Defence, Defence Public Sector Undertakings (DPSUs) and other public sector units accounted for about 76 per cent of total production in FY 2025-26, while the private sector contributed 24 per cent — an increase from 22 per cent in FY 2024-25. The private sector’s share reached an all-time high of around Rs 42,000 crore, reflecting its expanding role in India’s defence manufacturing ecosystem. The ministry noted that indigenous defence production has increased nearly fourfold from Rs 43,746 crore in FY 2013-14.

Rajnath Singh highlighted the rapid expansion of the sector, saying, “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.”

ALSO READ

Record defence exports of Rs 38,424 crore

The surge in domestic production has also translated into record defence exports. India recorded defence exports worth Rs 38,424 crore during FY 2025-26, the highest ever, the Ministry of Defence said. The achievement underscores the government’s push for self-reliance in defence manufacturing and the country’s growing capability to supply defence products to international markets.

“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,” Singh added. He credited the Department of Defence Production and industry stakeholders, both public and private, for the sustained rise in output.

‘Aatmanirbhar Bharat’ driving self-reliance

The Ministry stated that the milestone reflects the growing momentum of the ‘Aatmanirbhar Bharat’ initiative, which aims to reduce India’s dependence on foreign defence imports and build a robust domestic defence industrial base. The upward trajectory is seen as a clear indicator of the country’s expanding defence industrial capacity, backed by policy reforms, strategic partnerships, and a vibrancy in private sector involvement.

Defence Minister Singh concluded, “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.”

ALSO READ

India’s defence modernisation: Next-gen arms, stealth submarines, indigenous fighters and strategic missiles

India’s defence force is advancing a suite of future projects and indigenous arms systems to strengthen its capabilities across land, air, sea and space domains. The Indian Army is set to introduce the next-generation Advanced Towed Artillery Gun System (ATAGS), K9 Vajra self-propelled artillery and the Pinaka-2 rocket launcher with improved range and accuracy, alongside the Future Infantry Combat Vehicle (FICV) to replace older BMP platforms. The Navy is moving ahead with the Project 75(I) submarine programme for six international-strength stealth submarines, the next-generation offshore patrol vessels, and the indigenous nuclear-powered submarine Project 76, while also developing the BrahMos-N surface-to-ship missile and future anti-submarine weapons.

The Indian Air Force (IAF) is focusing on the next-generation Multi-Role Fighter Aircraft (MGFA) indigenously designed after the Tejas, the integration of the long-range ASTRA BM beyond-visual-range missile, and the development of unmanned combat aerial vehicles (UCAVs) and loitering drones for surveillance and strike roles. In the strategic domain, India is advancing the K-15 Sagarika submarine-launched ballistic missile, the next-generation Agni-VI with multiple independently targetable re-entry vehicles (MIRVs), and the air-launched version of the BrahMos.

The Defence Research and Development Organisation (DRDO) is also working on hypersonic cruise missiles, directed-energy weapons, and AI-enabled command-and-control systems, all aligned with the ‘Aatmanirbhar Bharat’ push to reduce import dependence and accelerate domestic production of cutting-edge defence technologies.