India’s annual defence production has reached an all-time high of Rs 1.78 lakh crore in the Financial Year (FY) 2025–26, marking a significant milestone in the country’s push towards self-reliance in defence manufacturing.

According to Ministry of Defence (MoD) the data for the FY 2025-26 shows that the production figure represents a 15.6% growth compared to Rs 1.54 lakh crore recorded in FY 2024-25.

It has also more than doubled from FY 2020-21 levels, when defence production stood at Rs 84,643 crore, reflecting a growth of around 110% over five years.

Compared with FY 2013–14, indigenous defence production has increased nearly fourfold from Rs 43,746 crore, highlighting the expansion of domestic manufacturing capabilities.

Defence Public Sector Undertakings (DPSUs) and other public sector units contributed around 76% of the total defence production in FY 2025-26, while the private sector accounted for the remaining 24%.

The private sector’s contribution has reached an all-time high of nearly Rs 42,000 crore during the fiscal year, rising from a 22% share in FY 2024-25. The increase reflects the growing participation of private companies in India’s defence manufacturing ecosystem.

The rise in domestic defence production has also supported India’s defence exports, which touched a record Rs 38,424 crore in FY 2025-26.

In a social media message twitted on post on X, the Defence Minister Rajnath Singh credited the inspiring leadership of Prime Minister Narendra Modi for taking India’s defence production to newer heights, and lauded the collective efforts of the Department of Defence Production and public & private sectors for achieving the landmark.

The minister highlighted that the upward trajectory is a clear indicator of the country’s expanding defence industrial base.

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.

The expansion of domestic defence manufacturing has been driven by policy reforms, increased private sector participation, and efforts to build India as a global defence manufacturing and export hub.