Record ₹1.78 Lakh Crore Defence Production Highlights India’s Manufacturing Growth In 2025–26

India’s annual defence production has reached an all-time high of Rs 1.78 lakh crore in the financial year 2025-26, marking a significant milestone in the country’s push towards self-reliance in military manufacturing, the Ministry of Defence said on Wednesday. The achievement reflects sustained growth across both public and private sector defence industries.

According to the ministry, the latest figure represents a 15.6 per cent increase over the previous financial year, when production stood at Rs 1.54 lakh crore. It also marks a sharp rise of 110 per cent compared to FY 2020-21, when defence output was recorded at Rs 84,643 crore, highlighting the rapid expansion of India’s defence industrial base over the last five years.

Defence Minister Rajnath Singh described the increase as a “remarkable rise,” attributing it to coordinated efforts by the Department of Defence Production along with multiple stakeholders across the ecosystem. He said the upward trajectory reflects the growing strength of India’s domestic manufacturing capabilities in the defence sector.

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He further stated that sustained policy support, new initiatives, increased participation from the private sector, and rising export potential have all contributed to strengthening the sector. Singh added that the defence production landscape is expected to continue its accelerated growth in the coming years as reforms deepen and capacity expands.

The ministry noted that defence public sector undertakings (DPSUs) and other government-run entities accounted for around 76 per cent of total production, while the private sector contributed 24 per cent.  The private sector’s share has increased from 22 per cent in the previous year, reaching an all-time high contribution of approximately Rs 42,000 crore.

Officials said the growing role of private companies reflects structural changes in India’s defence manufacturing ecosystem, supported by policy reforms aimed at encouraging indigenous production and reducing import dependence.  The ministry also highlighted that defence exports reached a record Rs 38,424 crore during the same period, driven by improved global demand for Indian-made defence equipment.

The government linked the expansion to its broader Aatmanirbhar Bharat initiative, aimed at promoting self-reliance in strategic sectors. It said the sustained growth in production and exports underscores India’s evolving position as a growing defence manufacturing hub with increasing global competitiveness.

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