India’s defence production hits record ₹1.78 lakh crore in FY 2025-26

India’s annual defence production has surged to an all-time high of ₹1.78 lakh crore in the Financial Year (FY) 2025-26, the Defence Ministry said on Wednesday (June 17, 2026).

According to the Ministry, the milestone represents a 15.6% growth over the previous fiscal year’s output of ₹1.54 lakh crore and a staggering 110% increase since FY 2020-21 when the figure was ₹84,643 crore. The indigenous defence production has increased almost four times from ₹43,746 crore in FY 2013-14.

Defence Public Sector Undertakings and other PSUs accounted for approximately 76% of total production, while the private sector contributed 24%, which is a rise from 22% in FY 2024-25.

“The share of the private sector is at its all-time high of around ₹42,000 crore in FY 2025-26, reflecting its expanding role in the defence ecosystem. The growth in defence production over the years has tremendously contributed in achieving the record defence exports of ₹38,424 crore in FY 2025-26. The achievement reflects the growing momentum of the government’s push for self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative, spearheaded by Prime Minister Narendra Modi,” said the Ministry.

Collective efforts

In a post on X, Defence Minister Rajnath Singh credited the inspiring leadership of Mr. Modi for taking India’s defence production to newer heights and lauded the collective efforts of the Department of Defence Production and public & private sectors for achieving the landmark.

He highlighted that the upward trajectory was a clear indicator of the country’s expanding defence industrial base. With sustained policy support, several new initiatives, increased private sector participation, and growing export capabilities, the defence production sector was poised for continued acceleration in the years ahead, Mr. Singh added.