What is driving India’s record defence manufacturing growth? Annual production reached ₹1.78 trillion in FY2025-26, alongside rising private sector participation and exports.
India’s defence production reached a record ₹1.78 trillion during the financial year 2025-26, marking a 15.6 per cent increase over ₹1.54 trillion recorded in the previous fiscal, according to data released by the government. The latest figure also represents a 110 per cent rise compared with ₹846.43 billion in FY2020-21 and is nearly four times higher than the ₹437.46 billion recorded in FY2013-14.
The government said defence public sector undertakings (DPSUs) and other public sector enterprises contributed around 76 per cent of the total production, while the private sector accounted for the remaining 24 per cent. The private sector’s share increased from 22 per cent in FY2024-25 to its highest level so far, contributing approximately ₹420 billion during FY2025-26.
According to the government, the growth in domestic defence manufacturing has also supported a record defence export performance of ₹384.24 billion during the same financial year. The figures reflect the continued expansion of India’s domestic defence manufacturing base and increasing participation from private companies.
In a post on X, Defence Minister Rajnath Singh said the latest production figures reflected the country’s expanding defence industrial base. He attributed the achievement to the combined efforts of the Department of Defence Production, public sector enterprises and private industry, while also acknowledging the leadership of Prime Minister Narendra Modi.
The government stated that policy measures aimed at strengthening domestic manufacturing, encouraging greater private-sector participation, and enhancing export capabilities have contributed to the sector’s growth. It added that continued policy support and ongoing initiatives are expected to sustain the momentum of defence production in the coming years.
