India defence production hits ₹1.78 lakh crore record, exports surge to ₹38,424 crore
Synopsis
India's defence output has grown more than fourfold in a decade to hit ₹1.78 lakh crore — and exports have jumped 56-fold to ₹38,424 crore, reaching over 80 countries. With ₹6 lakh crore in indigenous acquisitions cleared and private-sector share rising, the sector's transformation is structural, not merely statistical. The real question is whether the 2029 targets of ₹3 lakh crore in production and ₹50,000 crore in exports are within reach.
Key Takeaways
India's defence production reached a record ₹1.78 lakh crore in 2025–26 , up from ₹4,746 crore in FY 2013–14 .
Defence exports surged to ₹38,424 crore in FY 2025–26 , with hardware exported to more than 80 countries .
The private sector contributed 24 per cent of production and 45.16 per cent of exports in 2025–26 .
The DAC has cleared over ₹6 lakh crore in indigenous acquisitions, including 97 Tejas Mk-1A jets (₹62,000 crore) and 156 LCH Prachand helicopters (₹62,700 crore).
Defence R&D allocation grew by more than 112 per cent from 2014–15 to 2026–27 , with 25 per cent of the budget now open to industry and start-ups.
The Centre targets ₹3 lakh crore in annual production and ₹50,000 crore in exports by 2029 .
India's defence manufacturing output reached a record ₹1.78 lakh crore in 2025–26, marking an over fourfold increase from a mere ₹4,746 crore in FY 2013–14, according to a government factsheet released on 14 August 2025, a day before the country's 80th Independence Day. The figures underscore a decade-long push toward self-reliance in military hardware that has repositioned India as a credible global defence exporter.
Production Milestones
Of the ₹1.78 lakh crore total output in 2025–26, public-sector entities accounted for 76 per cent, with the private sector contributing the remaining 24 per cent. The Centre has set an ambitious target of ₹3 lakh crore in annual defence production and ₹50,000 crore in exports by 2029 — benchmarks that will require sustaining the current growth trajectory.
Export Surge Across 80-Plus Countries
Defence exports climbed from ₹686 crore in FY 2013–14 to ₹38,424 crore in FY 2025–26, with Indian military hardware now reaching markets in more than 80 countries. Defence Public Sector Undertakings (DPSUs) led exports with ₹21,071 crore or 54.84 per cent of the total, while the private sector contributed ₹17,353 crore or 45.16 per cent — a share that signals a maturing private defence industry.
R&D Investment and Innovation Push
The defence research and development allocation rose from ₹13,716.14 crore in 2014–15 to ₹29,100.25 crore in 2026–27, representing a growth of more than 112 per cent. Notably, since 2022–23, 25 per cent of the defence R&D budget has been opened to industry, start-ups, and academia to accelerate innovation. Testing facilities across 24 DRDO laboratories are now accessible via the Defence Testing Portal (DTP), a digital platform managed by the Ministry of Defence that allows domestic manufacturers and start-ups to request paid access to specialised government infrastructure.
Key Indigenous Acquisitions
The Defence Acquisition Council (DAC), India's apex defence procurement body, has accorded Acceptance of Necessity (AoN) for more than ₹6 lakh crore worth of systems designed by the Defence Research and Development Organisation (DRDO) and manufactured by Indian industry. Major approvals include 97 Tejas Mk-1A fighter jets valued at ₹62,000 crore and 156 LCH Prachand helicopters worth ₹62,700 crore, both of which expand India's domestic aerospace and defence manufacturing base.
Procurement Reforms Driving the Shift
A series of policy overhauls has underpinned the production surge. The Defence Procurement Procedure (DPP) 2016 laid the foundation for 'Make in India' in defence, while the Defence Acquisition Procedure (DAP) 2020 deepened indigenous procurement mandates and expanded opportunities for Indian companies in design, development, and production. The recently introduced Defence Procurement Manual (DPM) 2025 has streamlined nearly ₹1 lakh crore in revenue procurement, enabling faster approvals, relaxed penalties for indigenous projects, and assured long-term orders. Together, these frameworks represent the most comprehensive overhaul of India's defence procurement architecture in a generation. Whether execution keeps pace with policy ambition will define the sector's trajectory toward the 2029 targets.
Point of View
But the composition matters as much as the headline number — public-sector entities still account for three-quarters of output, meaning the private sector's 24 per cent share, while growing, has not yet fundamentally altered the industry's structure. The 56-fold jump in exports is striking, yet India's share of global arms exports remains a fraction of the top five suppliers; reaching ₹50,000 crore by 2029 will require breaking into higher-value platforms, not just components and ammunition. The opening of 25 per cent of the DRDO R&D budget to start-ups and academia since 2022–23 is the most consequential structural reform in this factsheet — if it produces competitive indigenous platforms, it changes the long-term trajectory. The harder accountability question, absent from the government's own factsheet, is how many of the ₹6 lakh crore in approved acquisitions have actually been delivered, and on what timeline.
NationPress
14 Aug 2026
Frequently Asked Questions
What is India's current defence production output?
India's defence production reached a record ₹1.78 lakh crore in 2025–26, according to a government factsheet released on 14 August 2025. This represents an over fourfold increase from ₹4,746 crore recorded in FY 2013–14.
How much has India's defence exports grown?
India's defence exports rose from ₹686 crore in FY 2013–14 to ₹38,424 crore in FY 2025–26, with military hardware now exported to more than 80 countries. The private sector contributed ₹17,353 crore or 45.16 per cent of total exports in the same year.
What are India's defence production and export targets for 2029?
The Centre has set targets of ₹3 lakh crore in annual defence production and ₹50,000 crore in exports by 2029. Achieving these will require sustaining the current growth rate and expanding into higher-value indigenous platforms.
Which major indigenous defence systems have been approved for procurement?
The Defence Acquisition Council has cleared 97 Tejas Mk-1A fighter jets worth ₹62,000 crore and 156 LCH Prachand helicopters worth ₹62,700 crore, among other systems. Overall, AoN has been accorded for more than ₹6 lakh crore of DRDO-designed, Indian industry-manufactured systems.
How has India's defence R&D spending changed, and who can access it?
The defence R&D allocation grew by more than 112 per cent, from ₹13,716.14 crore in 2014–15 to ₹29,100.25 crore in 2026–27. Since 2022–23, 25 per cent of this budget has been opened to industry, start-ups, and academia to accelerate innovation and indigenous production.
