Has India's Defence Production Achieved a Record High of Rs 1.51 Lakh Crore in FY25?

Synopsis
Key Takeaways
- Defence production hit Rs 1,50,590 crore in FY 2024-25.
- 18% growth from the previous fiscal year.
- Private sector contribution increased to 23%.
- Focus on self-reliance through Aatmanirbhar Bharat.
- Positive growth outlook for the future.
New Delhi, Aug 9 (NationPress) Defence Minister Rajnath Singh announced on Saturday that the country's annual defence production has reached an unprecedented level of Rs 1,50,590 crore for FY 2024-25.
This remarkable achievement signifies an impressive 18 percent increase compared to the previous fiscal year’s output of Rs 1.27 lakh crore, and an astounding 90 percent growth from FY 2019-20, when it stood at Rs 79,071 crore, as reported by the minister.
Nearly 77 percent of the total production came from Defence Public Sector Undertakings (DPSUs) and other PSUs, while the private sector accounted for 23 percent.
The private sector’s contribution rose from 21 percent in FY 2023-24 to 23 percent in FY 2024-25, showcasing its expanding role within the nation’s defence ecosystem.
The Minister praised the collaborative efforts of the Department of Defence Production, including all stakeholders—DPSUs, public sector manufacturers, and private firms—that contributed to this significant milestone.
He described this growth trajectory as a clear sign of India's strengthening defence industrial base.
Both public and private sectors have shown consistent year-on-year growth, driven by comprehensive policy reforms, enhanced ease of doing business, and a strategic emphasis on indigenisation over the past decade.
The total output from DPSUs and the private sector increased by 16 percent and 28 percent, respectively, in FY 2024-25.
According to a Defence Ministry statement, “This record-setting achievement underscores the growing momentum of the government’s push towards self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative led by Prime Minister Narendra Modi.”
The focus on reducing import dependency and developing a defence industrial complex that not only meets India’s needs but also bolsters export potential has yielded positive outcomes.
With ongoing policy support, increased private sector participation, and enhanced export capabilities, India’s defence production sector is set for continued growth in the coming years.