India’s Defence Production Doubles in Five Years, Hits Record Rs 1.78 Lakh Crore

India has achieved a significant milestone in its journey towards defence self-reliance, with the country's annual defence production touching a record Rs 1.78 lakh crore in the financial year 2025-26 , marking the highest-ever output in the sector's history.

The latest figures released by the Ministry of Defence underline the remarkable transformation of India's defence manufacturing ecosystem over the past decade. The production value registered a robust 15.6 per cent increase over the previous fiscal year's output of Rs 1.54 lakh crore and represents an impressive 110 per cent growth compared to FY 2020-21, when defence production stood at Rs 84,643 crore.

The achievement highlights the growing success of the government's Aatmanirbhar Bharat initiative, which has focused on reducing dependence on foreign defence imports while encouraging indigenous design, development and manufacturing of military equipment. The scale of progress becomes even more evident when compared with FY 2013-14, when India's defence production was valued at just Rs 43,746 crore. In little over a decade, the country's defence output has expanded nearly fourfold.

A major feature of the latest growth story has been the increasing contribution of the private sector. While Defence Public Sector Undertakings (DPSUs) and other public sector entities accounted for about 76 per cent of total production, private companies contributed around 24 per cent, their highest-ever share. The private sector's contribution climbed to nearly Rs 42,000 crore , reflecting the expanding role of Indian industry in supplying advanced military platforms, systems and components.

The surge in domestic manufacturing has also translated into stronger performance in international markets. India recorded its highest-ever defence exports of Rs 38,424 crore during FY 2025-26, reinforcing the country's emergence as a growing player in the global defence supply chain.

Defence Minister Rajnath Singh hailed the achievement and credited the leadership of Prime Minister Narendra Modi , along with the combined efforts of the Department of Defence Production and stakeholders across the public and private sectors. He described the record output as evidence of India's rapidly expanding defence industrial base and expressed confidence that continued policy support, greater private participation and rising export capabilities would drive even faster growth in the coming years.

The record production figures signal more than just economic growth. They reflect India's strategic ambition to build a self-reliant defence ecosystem capable of meeting national security requirements while simultaneously creating jobs, fostering innovation and positioning the country as a major exporter of defence equipment on the global stage.