India’s annual defence production touched a record high of ₹1.78 lakh crore in the financial year 2025-26, reflecting a strong acceleration in the country’s push towards self-reliance in military manufacturing.
The latest figure represents a 15.6% increase over ₹1.54 lakh crore recorded in FY2024-25.
Over a longer period, the growth has been even more significant. Defence production has more than doubled in five years, rising from ₹84,643 crore in FY2020-21 to ₹1.78 lakh crore in FY2025-26, a jump of 110%.
Compared to FY2013-14, when production stood at ₹43,746 crore, output has nearly quadrupled, highlighting the rapid expansion of India’s domestic defence industrial base.
Defence Minister Rajnath Singh credited the milestone to the leadership of Prime Minister Narendra Modi and the collective efforts of stakeholders across the defence ecosystem.
He said India’s defence production is achieving new record levels every year under the government’s policy push for indigenisation and manufacturing growth.
According to the Ministry of Defence, Defence Public Sector Undertakings (DPSUs) and other public sector units accounted for around 76% of total production in FY26.
The private sector contributed the remaining 24%, with its share rising from 22% in the previous fiscal year. In absolute terms, private sector output reached nearly ₹42,000 crore, marking its highest-ever contribution and underscoring its growing role in defence manufacturing.
The expansion in domestic production has also translated into record exports. India exported defence equipment worth ₹38,424 crore in FY26, the highest ever recorded, reflecting growing global demand for Indian military products.
Officials said the strong growth is the result of sustained policy reforms, increased private sector participation, and efforts to build export capacity. The government expects continued expansion in both production and exports as India strengthens its position as a global defence manufacturing hub.
