India's defence production hits record ₹1.78 lakh crore in FY26, up 15.6%
Synopsis
India's defence output has quadrupled since 2013-14 and doubled in five years — hitting ₹1.78 lakh crore in FY26. With private sector share at an all-time high and exports crossing ₹38,000 crore, the numbers mark a structural shift in how India arms itself. The question now is whether this momentum can be sustained without the tailwind of a post-pandemic rearmament cycle.
Key Takeaways
India's defence production reached a record ₹1.78 lakh crore in FY2025-26 , up 15.6% from ₹1.54 lakh crore in FY25.
Output has grown 110% since FY2020-21 and nearly four times since FY2013-14 .
Defence Public Sector Undertakings contributed 76% of total production; the private sector accounted for 24% — an all-time high of around ₹42,000 crore .
Defence exports also hit a record ₹38,424 crore in FY26.
Defence Minister Rajnath Singh credited PM Modi's leadership and the Aatmanirbhar Bharat initiative for the milestone.
India's defence production reached an all-time high of ₹1.78 lakh crore in FY2025-26, the government announced on Wednesday, 17 June, marking a 15.6% jump over the previous year's output of ₹1.54 lakh crore. The milestone underscores a decade-long policy push to build domestic defence manufacturing capacity under the Aatmanirbhar Bharat initiative.
A Decade of Accelerating Growth
The scale of the expansion is striking in historical context. Defence production stood at just ₹43,746 crore in FY2013-14 — meaning output has grown nearly four times over the past twelve years. Compared with FY2020-21, when the figure was ₹84,643 crore, the current output represents a 110% increase in five years, according to the Ministry of Defence.
What the Government Said
Defence Minister Rajnath Singh credited the leadership of Prime Minister Narendra Modi for driving the sector to new heights. In a post on X, Singh lauded the collective efforts of the Department of Defence Production and both public and private sector players for reaching the landmark. He described the upward trajectory as a clear indicator of India's expanding defence industrial base.
The ministry stated: 'The achievement reflects the growing momentum of the Government's push for self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative, spearheaded by PM Modi.'
Public vs Private Sector Contribution
Defence Public Sector Undertakings (DPSUs) and other PSUs accounted for approximately 76% of total production in FY26. The private sector contributed 24% — up from 22% in FY2024-25 — with its share reaching an all-time high of around ₹42,000 crore. This signals a gradual but meaningful shift in the ecosystem, with private industry taking on a larger role in what has historically been a state-dominated sector.
Defence Exports Also at a Record
The production surge has translated directly into export momentum. India's defence exports reached a record ₹38,424 crore in FY2025-26, reflecting growing international demand for Indian-manufactured defence equipment. The ministry attributed this to sustained policy support, new initiatives, and expanded private sector participation.
What Comes Next
With private sector participation rising and export order books deepening, the ministry indicated the sector is poised for continued acceleration. Analysts note that sustaining this trajectory will require consistent policy continuity, streamlined procurement timelines, and deeper technology transfer arrangements. The government's next targets and timelines have not yet been formally announced.
Point of View
But the composition matters as much as the headline number. With DPSUs still commanding 76% of output, the private sector's 24% — while a record — remains modest for an economy of India's scale. The export figure of ₹38,424 crore is significant, but India's share of global defence trade remains small. The deeper test is whether domestic production is reducing import dependency in critical platforms — fighter jets, submarines, advanced electronics — or largely reflecting growth in lower-complexity segments. That distinction is what separates a manufacturing milestone from a strategic one.
NationPress
3 Aug 2026
Frequently Asked Questions
What is India's defence production figure for FY2025-26?
India's defence production reached a record ₹1.78 lakh crore in FY2025-26, according to the Ministry of Defence. This is a 15.6% increase over the previous year's output of ₹1.54 lakh crore.
How much has India's defence production grown since FY2013-14?
Defence production has grown nearly four times since FY2013-14, when the figure stood at ₹43,746 crore. It has also more than doubled since FY2020-21, when output was ₹84,643 crore.
What share of defence production comes from the private sector?
The private sector contributed 24% of total defence production in FY26 — up from 22% in FY2024-25 — reaching an all-time high of around ₹42,000 crore. Defence PSUs accounted for the remaining 76%.
What are India's defence export figures for FY26?
India's defence exports reached a record ₹38,424 crore in FY2025-26, driven by the growth in domestic production capacity and expanding international demand for Indian-manufactured defence equipment.
What is the Aatmanirbhar Bharat initiative in defence?
Aatmanirbhar Bharat, or 'self-reliant India', is the government's overarching policy framework to reduce defence import dependency by boosting domestic manufacturing. The Ministry of Defence cited it as the driving force behind the record production figures in FY26.
