India recorded its highest-ever defence production of Rs 1.54 lakh crore with defence exports reaching a record Rs 23,622 crore in FY25. According to a government release on Thursday, the sharp rise in output and exports reflects the steady progress towards defence self-reliance (‘Atmanirbharta’).
PSUs dominate production, but private sector tops export share
Indigenous production stood at Rs 1,27,434 crore in FY24, marking a 174% rise compared to FY15. Defence Public Sector Undertakings (DPSUs) and other PSUs accounted for approximately 77% of total production, while the private sector contributed 23%.
In terms of exports, the private sector outpaces PSUs. The private sector accounted for the larger share of defence exports at over Rs 15,233 crore, while defence public sector undertakings contributed around Rs 8,389 crore
Record 193 defence contracts signed in FY25
The Ministry highlighted that FY25 saw the highest ever defence contracts, with 193 deals worth Rs 2,09,050 crore signed during the year. Of these, domestic industries received 177 contracts worth nearly Rs 1.69 lakh crore.
With increased domestic capacity, India now sources at least 65% of its defence needs from local producers, compared to a time when 65–70% of equipment was imported.
Government targets Rs 3 lakh crore defence production
The government aims to achieve defence manufacturing worth Rs 3 lakh crore and Rs 50,000 crore in defence exports by 2029. “India now exports to over 100 nations, including to United States, France and Armenia,” said the government release.
Defence sector stocks gain in 2025 so far
The defence sector stocks have also put up an enouraging performance thus far in 2025.
Among PSUs, the share price of Hindustan Aeronautics (HAL) has increased 13.57% so far this year. Bharat Dynamics (BDL) has risen 37.24% on a year-to-date basis, while Bharat Electronics (BEL) has also gained 44.78% since January.
In the private defence space, Bharat Forge is up 11.02% this year, and Paras Defence & Space Technologies has surged 48.13% so far.
