India’s annual defence production has reached an all-time high of Rs 1.78 lakh crore in FY 2025-26, as maintained by the Ministry of Defence, marking another milestone in the government’s push to expand domestic manufacturing and reduce reliance on imports.
The ministry said the figure was up from Rs 1.54 lakh crore in the previous fiscal year and more than double the Rs 84,643 crore recorded in FY 2020-21.
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India’s Domestic Defence Production reached ₹1.78 lakh crore ($18 Billion) in FY 2025-26 compared to ₹1.54 Trillion in previous fiscal registering a 15.6% YoY growth. pic.twitter.com/1ZcSiTCuBF
— News IADN (@NewsIADN) June 17, 2026
Government hails manufacturing surge
Defence Minister Rajnath Singh welcomed the progress, saying India’s defence production is “reaching new heights every year” under the leadership of Prime Minister Narendra Modi.
Via X, Singh said he was delighted to inform the public about the record output, while the ministry said the increase reflected stronger indigenous manufacturing, greater private sector involvement and sustained policy support under the Aatmanirbhar Bharat initiative.
India’s indigenous #defenceproduction has soared to Rs 1.78 lakh crore in FY 2025-26. The record setting achievement reflects the growing momentum of the government’s push for self-reliance in defence manufacturing under #AatamnirbharBharat initiative. #MakeInIndia #ViksitBharat… pic.twitter.com/zyyErb89G3
— Ministry of Defence, Government of India (@SpokespersonMoD) June 17, 2026
Private players gain ground
The ministry added that defence public sector undertakings (PSUs) and other public sector units accounted for about 76% of total production in FY 2025-26, while the private sector’s share rose to 24%, the highest so far, and was worth around Rs 42,000 crore.
It stated that indigenous defence production has increased almost fourfold from Rs 43,746 crore in FY 2013-14, underscoring how sharply the sector has expanded over the last decade.
Exports join the record run
The production rise has also been accompanied by a record in defence exports, which the ministry said touched Rs 38,424 crore in FY 2025-26.
Officials said the growth points to a broader shift in India’s defence-industrial base, with domestic capability, export capacity and private investment all rising in tandem as the government pushes to build a stronger self-reliant ecosystem.
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FAQs
Q1: What is India's defence production in FY 2025-26?
Ans: India's defence production reached a record Rs 1.78 lakh crore in FY 2025-26, according to the Ministry of Defence.
Q2: How much did India export in defence products in FY 2025-26?
Ans: India's defence exports touched an all-time high of Rs 38,424 crore in FY 2025-26.
