India's annual defence production reached a record high of Rs 1.78 lakh crore in Financial Year 2025-26, representing a significant 15.6% growth over the previous fiscal year's output of Rs 1.54 lakh crore. This achievement marks a staggering 110% increase since FY 2020-21 when production stood at Rs 84,643 crore, and an almost four-fold increase from Rs 43,746 crore in FY 2013-14.
The production breakdown shows Defence Public Sector Undertakings and other PSUs accounted for approximately 76% of total production, while the private sector contributed 24%, which increased from 22% in FY 2024-25. The private sector achieved its highest-ever contribution of around Rs 42,000 crore in FY 2025-26, reflecting its expanding role in the defence ecosystem. This production growth has significantly contributed to achieving record defence exports of Rs 38,424 crore in the same fiscal year.
The achievement is attributed to the Government's push for self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative, spearheaded by Prime Minister Narendra Modi. Defence Minister Rajnath Singh credited Modi's inspiring leadership for taking India's defence production to newer heights and praised the collective efforts of the Department of Defence Production and both public and private sectors. Singh highlighted that this upward trajectory indicates the country's expanding defence industrial base, noting that with sustained policy support, new initiatives, increased private sector participation, and growing export capabilities, the defence production sector is poised for continued acceleration in the coming years.