India's defence production has reached a record ₹1.78 lakh crore in the financial year 2025-26, marking a 15.6% increase from ₹1.54 lakh crore in the previous year. This figure is more than double the ₹84,643 crore recorded in 2020-21 and nearly four times the ₹43,746 crore of 2013-14.

The growth reflects continued expansion in domestic manufacturing and exports. Defence Public Sector Undertakings and other PSUs made up about 76% of total production, while the private sector's share rose to 24%, up from 22% in 2024-25, reaching around ₹42,000 crore.

Defence Minister Rajnath Singh said, “The remarkable rise in India’s defence production in recent years is the result of the collective efforts of the Department of Defence Production and all other stakeholders. This upward trajectory is a clear indicator of the country’s expanding defence industrial base. With sustained policy support, several new initiatives, increased private sector participation, and growing export capabilities, the defence production sector is poised for continued acceleration in the years ahead.”

Defence exports also hit a record ₹38,424 crore in 2025-26. These figures highlight the government's focus on self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative, with production and private sector participation at their highest levels to date.

12 YEARS IN THE MAKING

In a note, the Press Information Bureau (PIB) stated that significant progress in strengthening defence capabilities were made in the past 12 years. The government introduced major policy reforms to support domestic innovation and rebuild a robust defence ecosystem under Atmanirbhar Bharat and Make in India initiatives. 

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Initiatives like the Defence Acquisition Procedure 2020 and Defence Procurement Manual 2025 have simplified processes, increased indigenous content, and encouraged participation from the private sector and MSMEs, it said. Defence budgets have increased substantially to support modernisation and local manufacturing. 

Funding for research and development has more than doubled, with greater involvement from industry, startups, and academic institutions. India's defence exports have grown rapidly, now reaching over 80 countries. 
 

Published on: Jun 17, 2026 1:02 PM IST