New Delhi: India’s annual defence production reached an all-time high of Rs 1.78 lakh crore in the financial year 2025-26, reflecting the country’s expanding indigenous manufacturing capabilities and growing self-reliance in the defence sector, Defence Minister Rajnath Singh announced on Wednesday.
The latest figure marks a 15.6 per cent increase over the previous year’s production of Rs 1.54 lakh crore. Rajnath Singh said defence production has more than doubled since FY2020-21, when it stood at Rs 84,643 crore.
“India’s annual defence production has surged to an all-time high of Rs 1.78 lakh crore in the Financial Year 2025-26,” the minister said in a post on X, attributing the growth to the government’s focus on indigenous manufacturing and policy reforms.
According to the Defence Ministry, domestic defence production has nearly quadrupled over the past decade, rising from Rs 43,746 crore in FY2013-14. Defence Public Sector Undertakings (DPSUs) and other public sector enterprises contributed around 76 per cent of the total production value.
The private sector also recorded its highest-ever contribution, accounting for nearly Rs 42,000 crore or 24 per cent of the total output, up from 22 per cent in FY2024-25. Officials said the increase reflects the growing participation of private companies, MSMEs and start-ups across segments such as aerospace, missiles, naval systems, armoured vehicles, electronics and ammunition.
The announcement comes as India has raised its defence budget for FY2026-27 to a record Rs 7.85 lakh crore, a 15.3 per cent increase from Rs 6.81 lakh crore in the previous financial year.
The expansion in domestic manufacturing has also boosted exports, which touched a record Rs 38,424 crore during FY2025-26.
Prime Minister Narendra Modi welcomed the achievement, saying India’s defence capabilities have undergone a major transformation over the past decade through innovation, technology and indigenous production. He said the growth reflects the country’s determination to build a strong and self-reliant defence ecosystem.
