Blitz Bureau
NEW DELHI: Marking a significant milestone in India’s journey towards self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative, the defence production reached an all-time high of Rs1.78 lakh crore in the financial year 2025-26.
According to the Ministry of Defence (MoD), defence production registered a 15.6 per cent increase over the previous fiscal year’s output of Rs1.54 lakh crore. The growth has been even more pronounced over the longer term, with production rising by 110 per cent since FY 2020-21, when the figure stood at Rs84,643 crore.
The latest achievement also highlights the rapid expansion of indigenous manufacturing capabilities. Defence production has nearly quadrupled from Rs43,746 crore recorded in FY 2013-14, reflecting sustained investments in domestic defence industrial capacity over the past decade.
Defence Minister Rajnath Singh hailed the achievement and credited Prime Minister Narendra Modi’s leadership for the sector’s rapid growth.
In a post on X, Singh said the record production figures reflected the success of the Government’s efforts to strengthen indigenous defence manufacturing and build a robust defence industrial base.
Defence Public Sector Undertakings (DPSUs) and other public sector entities continued to play a dominant role in production, accounting for nearly 76 per cent of the total output during FY26.
However, the private sector’s contribution reached a record level, accounting for 24 per cent of total defence production, up from 22 per cent in the previous financial year. Private companies contributed approximately Rs42,000 crore, the highest-ever participation by the sector in India’s defence manufacturing ecosystem.
The Ministry said the growing role of private industry reflects the success of Government initiatives aimed at encouraging greater participation of domestic companies in defence production and innovation.
The strong growth in domestic manufacturing has also contributed to a significant rise in defence exports.
India’s defence exports touched a record Rs38,424 crore in FY26, underlining the increasing global acceptance of Indian-made defence equipment and platforms.
The Government views the twin achievements of record production and exports as evidence of the growing competitiveness of India’s defence industry and its expanding footprint in international markets.
The Government has introduced a series of measures in recent years to promote indigenous design, development, and manufacturing of defence equipment. These include positive indigenisation lists, reforms in defence acquisition procedures, incentives for domestic manufacturers, and initiatives aimed at boosting exports.
