The share of the private sector in defence production is at its all-time high of around ₹42,000 crore in FY26, reflecting its expanding role in the defence ecosystem | Photo Credit: MURALI KUMAR K

Annual defence production recorded an all-time high of ₹1.78 lakh crore in FY26, a 15.6 per cent growth over the previous fiscal year’s output of ₹1.54 lakh crore. The jump in production was due to better output from the private sector.

While defence public sector undertakings (DPSUs) and other PSUs accounted for approximately 76 per cent of total production, the private sector is catching up with its contribution of 24 per cent, a rise from 22 per cent in FY25, said a statement from the Ministry of Defence.

“The share of the private sector is at its all-time high of around ₹42,000 crore in FY26, reflecting its expanding role in the defence ecosystem. The growth in defence production over the years has tremendously contributed in achieving the record defence exports of ₹38,424 crore in FY26,” the statement read, underlining the growing momentum of self-reliance initiative in the defence manufacturing.

indigenous manufacturing

Responding to the surge in the indigenous manufacturing of military products, Defence Minister Rajnath Singh credited the inspiring leadership of Prime Minister Narendra Modi for taking India’s defence production to newer heights, and lauded the collective efforts of the Department of Defence Production and public & private sectors.

“This milestone represents an impressive 15.6 per cent growth over the previous fiscal year’s output of ₹1.54 lakh crore and a staggering 110 per cent increase since FY21, when the figure stood at ₹84,643 crore. Indigenous defence production has increased nearly fourfold from ₹43,746 crore in FY–14,” he posted in X.

He also highlighted that the 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,” Singh remarked.

Prime Minister Modi too has highlighted the significant transformation witnessed in India’s defence capabilities over the last decade.

major transformation

With his government completing 12 years in power, Modi posted on social media platform that India’s defence capabilities have undergone a major transformation, guided by the vision of self-reliance and powered by innovation, technology and indigenous manufacturing.

He noted that the progress made in the defence sector over the last 12 years reflects India’s growing focus on strengthening national security through self-reliance.

The country, as per him, has strengthened its defence capabilities across air, land and sea, advanced indigenous technologies and built a stronger foundation for self-reliance and national security.

Published on June 17, 2026