MoD Reports Record ₹1.5 Lakh Crore in Defence Production, Up 90% Since 2019-20

The Ministry of Defence has claimed that the annual defence production increased to an all-time high figure of Rs 1,50,590 crore in the Financial Year (FY) 2024-25, triggering a fiscal growth of 18 percent as compared to the previous financial year.

In a statement issued here the Ministry stated that it has accounted for a staggering 90 percent increase since FY 2019-20, when the figure was Rs 79,071 crore.

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Dubbing the upward trajectory as a clear indicator of India’s strengthening defence industrial base, Defence Minister Rajnath Singh lauded the collective efforts of the Department of Defence Production and all stakeholders including the Defence Public Sector Undertakings (DPSUs), public sector manufacturers, and the private industry in achieving this landmark.

“The emphasis to reduce the dependency on imports and create a defence industrial complex that not only caters to India’s needs but also strengthens the potential of exports has shown positive results,” he said.

Providing a break up, the ministry stated that DPSUs and other PSUs accounted for approximate 77 percent of total production, while the private sector contributed 23 percent, marking a two percent increase in comparison to 2023-24.

Both public and private segments of the industry have demonstrated consistent year-on-year growth, attributed to far-reaching policy reforms, enhanced ease of doing business, and a strategic focus on indigenization over the past decade.

The overall production of DPSUs and private sector has increased by 16% percent and 28 percent, respectively, the statement added further.

It may be recalled that the defence exports have surged to a record high of Rs 23,622 crore in FY 2024-25. It was a growth of Rs 2,539 crore or 12.04 percent over the defence exports figures of FY 2023-24, which were Rs 21,083 crore.