Defence Production Reaches Record Rs 1.78 Trillion

24 Jun 2026 CW Team

India's annual defence production surged to an all-time high of Rs 1.78 trillion (Rs 1.78 tn) in the financial year 2025-26, the Ministry of Defence said. The figure represents a 15.6 per cent increase over the previous financial year's output of Rs 1.54 tn and a 110 per cent rise since financial year 2020-21, when production stood at Rs 846.43 billion (Rs 846.43 bn). Indigenous production has risen almost four times from Rs 43,746 crore (Rs 437.46 bn) in the financial year 2013-14.

Defence public sector undertakings and other public sector units accounted for approximately 76 per cent of total production, while the private sector contributed 24 per cent, up from 22 per cent in the previous year. The private sector's share reached an all-time high of about Rs 42,000 crore, equivalent to Rs 420 bn, reflecting its expanding role in the defence manufacturing ecosystem. The shift underlines increased participation of private firms in production and supply chains.

The growth in production supported record defence exports totalling Rs 38,424 crore in 2025-26, equal to Rs 384.24 bn, according to the ministry. The outcome was attributed to policy reforms, capacity additions and targeted incentives aimed at self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative led by Prime Minister Narendra Modi. Officials noted that sustained policy support and new initiatives have enhanced export capabilities and market access for Indian suppliers.

Raksha Mantri Rajnath Singh credited the Prime Minister's leadership for fostering a conducive environment for defence manufacturing and praised the collective efforts of the Department of Defence Production along with public and private sector partners. He said the upward trajectory demonstrates the expanding industrial base and indicated that with continued reforms and private sector participation, the sector is poised for further acceleration in the coming years.

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