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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 milestone represents a 15.6 per cent growth over the previous fiscal year's output of ₹1.54 lakh crore and a staggering 110 per cent 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 per cent of total production, while the private sector contributed 24 per cent, which is a rise from 22 per cent 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 Atmanirbhar Bharat initiative, spearheaded by Prime Minister Narendra Modi.
In a post on X, Defence Minister Rajnath Singh credited the inspiring leadership of Prime Minister 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
