– Pratyusha Mukherjee
India’s defence manufacturing sector has achieved a landmark milestone, with annual defence production touching an all-time high of ₹1.78 lakh crore in Financial Year 2025-26, underscoring the nation’s rapid transformation into a self-reliant and globally competitive defence industrial power.
The latest figures represent a 15.6 per cent increase over the previous fiscal year’s production value of ₹1.54 lakh crore and mark a remarkable 110 per cent growth compared to FY 2020-21, when defence production stood at ₹84,643 crore. The achievement becomes even more significant when viewed against the backdrop of FY 2013-14, when indigenous defence production was valued at ₹43,746 crore, reflecting nearly a fourfold increase over the past decade.
The milestone highlights the sustained momentum generated by the Government’s flagship Aatmanirbhar Bharat initiative and its determined efforts to strengthen indigenous design, development, and manufacturing capabilities across the defence sector.
Growing Role of the Private Sector:
A notable feature of the latest performance is the expanding contribution of private industry to India’s defence ecosystem. While Defence Public Sector Undertakings (DPSUs) and other public sector entities accounted for approximately 76 per cent of total production, the private sector’s share rose to 24 per cent, up from 22 per cent in FY 2024-25.
The private sector recorded its highest-ever contribution of nearly ₹42,000 crore, reflecting increasing participation in defence manufacturing, technology development, component production, and integration of advanced military systems.
Industry experts view this trend as evidence of the growing confidence among private enterprises in the defence sector, supported by progressive policy reforms, simplified procurement procedures, and enhanced opportunities under indigenous acquisition programmes.
Boosting Exports and Strategic Capability:
The surge in domestic production has also contributed significantly to India’s expanding defence export footprint. During FY 2025-26, India achieved a record ₹38,424 crore in defence exports, demonstrating the increasing global acceptance of Indian defence products and technologies.
From advanced weapon systems and naval platforms to aerospace components and electronic warfare solutions, Indian defence manufacturers are steadily establishing a presence in international markets, strengthening the country’s strategic and economic standing.
The continued rise in indigenous production is expected to reduce dependence on imports, enhance operational readiness of the armed forces, and foster innovation across the domestic defence industrial base.
Defence Minister Lauds Collective Achievement:
In a post on X, Defence Minister Rajnath Singh credited the achievement to the visionary leadership of Prime Minister Narendra Modi and the collaborative efforts of stakeholders across the defence manufacturing ecosystem.
“Under the inspiring leadership of Prime Minister Shri Narendra Modi, India’s defence production has reached new heights. I congratulate the Department of Defence Production, DPSUs, private industry and all stakeholders for achieving this landmark milestone. The consistent growth in defence production reflects the expanding strength of India’s defence industrial base. With continued policy support, increasing private sector participation and growing export capabilities, the sector is poised for even greater acceleration in the coming years.”
Strengthening the Road to Self-Reliance:
The record production figures reinforce India’s emergence as a major defence manufacturing hub and reflect the success of long-term reforms aimed at building a robust and self-sustaining defence ecosystem. Initiatives such as positive indigenisation lists, enhanced foreign direct investment provisions, innovation programmes, and industry-friendly procurement policies have collectively accelerated the pace of domestic production.
As India continues its journey towards defence self-reliance, the historic achievement of ₹1.78 lakh crore in defence production stands as a testament to the country’s growing industrial capabilities, technological prowess, and strategic vision. With a strong foundation now in place, the sector is well-positioned to support national security requirements while expanding its footprint in the global defence marketplace.
