**Executive Summary**
In Financial Year (FY) 2025-26, India's annual defence production reached an all-time high of Rs 1.78 lakh crore, marking a 15.6% growth over the previous fiscal year. This milestone, reported by the Ministry of Defence on June 17, 2026, reflects a 110% increase in production since FY 2020-21 and a nearly fourfold increase since FY 2013-14. The growth is attributed to the Aatmanirbhar Bharat initiative and highlights significant surges in both private sector participation and defence exports.
**Key Points / Main Content**
**Production and Growth Statistics**
* Total defence production for FY 2025-26 reached a record Rs 1.78 lakh crore.
* The sector saw a 15.6% growth compared to FY 2024-25, which had an output of Rs 1.54 lakh crore.
* Long-term growth shows a 110% increase from FY 2020-21 (Rs 84,643 crore) and an increase from Rs 43,746 crore in FY 2013-14.
**Sector Contributions**
* **Public Sector:** Defence Public Sector Undertakings (DPSUs) and other PSUs accounted for approximately 76% of total production.
* **Private Sector:** Contributed 24% of total production, reaching an all-time high of approximately Rs 42,000 crore.
* Private sector participation rose from 22% in the previous financial year, reflecting an expanding role in the defence ecosystem.
**Export Performance and Policy**
* Defence exports hit a record high of Rs 38,424 crore in FY 2025-26.
* The upward trajectory is credited to the Government's "Aatmanirbhar Bharat" initiative and sustained policy support.
* The expansion of the defence industrial base is expected to continue accelerating due to new initiatives and growing export capabilities.
**Impact Analysis**
**Government of India (Ministry of Defence / Department of Defence Production)**
**Impact**
The record figures validate the success of the Aatmanirbhar Bharat initiative and the government's push for self-reliance in manufacturing. It reflects positively on the leadership and policy framework established to strengthen the national defence industrial base.
**Action Required**
The government must maintain sustained policy support and introduce new initiatives to ensure continued acceleration in production and export capabilities.
**Private Sector Defence Manufacturers**
**Impact**
The private sector is seeing a growing role in the defence ecosystem, evidenced by its record 24% share (Rs 42,000 crore) of total production.
**Action Required**
Private entities must continue to increase participation and invest in manufacturing capabilities to support the country's expanding defence industrial base.
**Defence Public Sector Undertakings (DPSUs) and PSUs**
**Impact**
These organizations remain the primary drivers of production, accounting for 76% of the total output.
**Action Required**
DPSUs must continue their collective efforts with the private sector to sustain the momentum of indigenous production and contribute to record-breaking export targets.
Key Entities Referenced
Aatmanirbhar Bharat initiative: The central government program focused on achieving self-reliance in defence manufacturing, cited as the primary driver for the record production growth.
Department of Defence Production: The nodal government department responsible for overseeing the domestic manufacturing efforts that achieved the record Rs 1.78 lakh crore production value.
Defence Public Sector Undertakings (DPSUs): State-owned enterprises that accounted for approximately 76% of the total annual defence production in FY 2025-26.
Rajnath Singh: The Raksha Mantri (Minister of Defence) who officially announced the production milestones and credited policy support for the sector's expansion.
Narendra Modi: The Prime Minister of India who spearheaded the strategic push for self-reliance in the defence sector through national manufacturing initiatives.
Ministry of Defence
Defence production soars to a record Rs 1.78
lakh crore in Financial Year 2025-26
प्रव तथ: 17 JUN 2026 9:17AM by PIB Delhi
India’s annual defence production has surged to an all-time high of Rs 1.78 lakh crore in the Financial
Year (FY) 2025-26. The milestone represents a 15.6% growth over the previous fiscal year’s output of Rs
1.54 lakh crore and a staggering 110% increase since FY 2020-21 when the figure was Rs 84,643 crore.
The indigenous defence production has increased almost four times from Rs 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 Rs 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 Rs 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 Shri Narendra
Modi.
In a post on X, Raksha Mantri Shri Rajnath Singh credited the inspiring leadership of Prime Minister Shri
Narendra 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 is 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 is poised for continued acceleration in the years
ahead, he added.
Under the inspiring leadership of PM Shri @narendramodi, India’s defence
production is reaching new heights every year. I am delighted to inform everyone
that India’s annual defence production has surged to an all-time high of Rs 1.78
lakh crore in the Financial Year (FY)…
— Rajnath Singh (@rajnathsingh) June 17, 2026
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