India’s annual defence production has reached a record ₹1.78 lakh crore in financial year 2025-26, marking the highest-ever output for the country’s defence manufacturing sector.
According to the Ministry of Defence, the latest figure represents a 15.6 per cent increase over the previous financial year, when defence production stood at ₹1.54 lakh crore.
The production value has also more than doubled from ₹84,643 crore in FY 2020-21.
The ministry said indigenous defence production has grown nearly four times compared with FY 2013-14, when the figure was ₹43,746 crore.
Defence Public Sector Undertakings and other public sector units continued to dominate the sector, accounting for around 76 per cent of total production in FY 2025-26.
The private sector contributed 24 per cent, up from 22 per cent in FY 2024-25.
The private sector’s production value reached around ₹42,000 crore during the year, which the ministry described as its highest-ever contribution to India’s defence production ecosystem.
The growth in production has also supported India’s defence exports, which reached a record ₹38,424 crore in FY 2025-26.
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The ministry said the expansion of the defence industrial base, rising private sector participation and export capability have contributed to the latest milestone.
Defence Minister Rajnath Singh credited the increase to the leadership of Prime Minister Narendra Modi and the combined efforts of the Department of Defence Production, public sector units and private industry.
He said the upward trend shows that India’s defence industrial base is expanding, supported by policy measures, new initiatives and greater participation from domestic manufacturers.
The latest figures come at a time when India is trying to reduce dependence on defence imports and increase the domestic production of military platforms, systems and components.
The rise in both production and exports indicates that the country’s defence manufacturing sector is gaining scale, though public sector enterprises continue to account for the majority of output.
With sustained policy support and growing industry participation, the ministry expects the defence production sector to maintain its growth momentum in the coming years.
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