India’s defence production hits record Rs 1.78 lakh crore
India’s annual defence production touched an all-time high of Rs 1.78 lakh crore in the financial year 2025-26, the defence ministry said on Wednesday. The milestone represents a 15.6 per cent growth over the previous fiscal year’s output of Rs 1.54 lakh crore and a staggering 110 per cent increase since 2020-21, when the figure was Rs 84,643 crore, it said.
Defence Minister Rajnath Singh said 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,” he said.
“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,” Rajnath said. The defence ministry said the rise in the defence production is “staggering” and that it is a 110 per cent increase since 2020-21, when the figure was Rs 84,643 crore. The indigenous defence production has increased almost four times from Rs 43,746 crore in 2013-14, it said.
“The Defence Public Sector Undertakings (DPSUs) and other PSUs accounted for approximately 76 per cent of total production, while the private sector contributed 24 per cent, which is a rise from 22 per cent in 2024-25,” the ministry said.
“The share of the private sector is at its all-time high of around Rs 42,000 crore in 2025-26, reflecting its expanding role in the defence ecosystem,” it added.
The ministry said the growth in defence production over the years has “tremendously” contributed to achieving the record defence exports of Rs 38,424 crore in 2025-26.
“The achievement reflects the growing momentum of the Government’s push for self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative, spearheaded by Prime Minister Narendra Modi,” it said in a statement.
