New Delhi, June 17: India’s annual defence production climbed to an all-time high of 1.78 lakh crore rupees in the 2025-26 financial year, fueled by expanding indigenous manufacturing and a growing network of private sector partnerships. The Defence Ministry announced the figures on Wednesday, showcasing a robust 15.6 percent year-on-year growth compared to the previous fiscal period’s output of 1.54 lakh crore rupees. This development signals a major acceleration in the nation’s efforts to build a self-reliant military industrial base.
The latest production metrics reveal a massive 110 percent surge from the 84,643 crore rupees recorded just five years ago in 2020-21. While Defence Public Sector Undertakings and related public units still command the lions’ share at 76 percent of total output, private enterprises achieved a record-breaking contribution of 24 percent, bringing in approximately 42,000 crore rupees to the national defense ecosystem.
Defence Minister Rajnath Singh asserted that the positive trajectory stems directly from structured policy changes and the unified efforts of public and private manufacturers. “This upward trajectory is a clear indicator of the country’s expanding defence industrial base,” the Defence Minister declared.
The domestic manufacturing boom has simultaneously propelled the nation’s global trade footprints, with military exports reaching a record 38,424 crore rupees in the same financial year. This spike reflects a widening international market for locally engineered military hardware and systems, decreasing historical dependencies on foreign suppliers.
The Defence Minister maintained that the ongoing structural updates will continue to secure the industry’s future development. He stated that sustained policy support, a series of reforms, growing private sector involvement and increasing export opportunities had helped strengthen the sector and would continue to drive growth in the coming years.
According to ministry data, domestic defense manufacturing has nearly quadrupled since the 2013-14 fiscal year, when output stood at 43,746 crore rupees. Government officials expect the manufacturing sector to play an increasingly dual role in fortifying national security and boosting long-term economic productivity.
