India’s defence manufacturing sector has achieved a major milestone, with annual defence production touching a record Rs 1.78 lakh crore in the financial year 2025-26, marking the highest-ever output recorded by the country’s defence industry, the government said on Wednesday.
The latest figure reflects a 15.6 per cent rise compared to the previous financial year, when defence production stood at Rs 1.54 lakh crore. The growth has been even more significant over the last few years, with production increasing by 110 per cent from Rs 84,643 crore in FY 2020-21.
The Defence Ministry said indigenous defence manufacturing has grown nearly four times from Rs 43,746 crore in FY 2013-14, highlighting the expansion of India’s domestic defence industrial base.
Defence Minister Rajnath Singh attributed the achievement to the policy push and leadership under Prime Minister Narendra Modi, while appreciating the efforts of the Department of Defence Production, defence public sector units, private companies and other stakeholders.
In a post on X, Singh said the continued rise in defence output reflects India’s growing capabilities in manufacturing military equipment and strengthening its self-reliance in the defence sector. The minister said sustained government support, new policy initiatives, greater participation from private players and improved export capabilities have created the foundation for further growth in the sector.
Under the inspiring leadership of PM Shri @narendramodi, India’s defence production is reaching new heights every year. I am delighted to inform everyone that India’s annual defence production has surged to an all-time high of Rs 1.78 lakh crore in the Financial Year (FY)…
— Rajnath Singh (@rajnathsingh) June 17, 2026
Private sector role expands
Defence Public Sector Undertakings (DPSUs) and other public sector units contributed around 76 per cent of the total defence production in FY26, while the private sector accounted for 24 per cent.
The private sector’s contribution reached an all-time high of nearly Rs 42,000 crore during the year, increasing from its 22 per cent share in FY 2024-25. The rise indicates a growing role for private companies in India’s defence manufacturing ecosystem.
Boost to defence exports
The increase in domestic production has also supported India’s defence export growth. The country recorded defence exports worth Rs 38,424 crore in FY26, reflecting the impact of efforts to promote indigenous manufacturing and reduce dependence on imports.
The Defence Ministry said the record production numbers underline the progress of the government’s Aatmanirbhar Bharat initiative in defence manufacturing and the strengthening of India’s position as an emerging defence production hub.