India's annual defence production reached an all-time high of Rs 1.78 lakh crore in 2025-26, registering robust growth driven by rising indigenous manufacturing, greater private sector participation and expanding export capabilities, the Defence Ministry said on Wednesday.
The production value marks a 15.6 per cent increase over the previous financial year's output of Rs 1.54 lakh crore. It also represents a 110 per cent jump from Rs 84,643 crore recorded in 2020-21, underscoring the rapid expansion of the country's defence industrial base.
Defence Minister Rajnath Singh attributed the achievement to the collective efforts of the Department of Defence Production and other stakeholders involved in the sector.
"This upward trajectory is a clear indicator of the country's expanding defence industrial base," Singh said.
He said 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 the ministry, indigenous defence production has nearly quadrupled from Rs 43,746 crore in 2013-14, reflecting the impact of measures aimed at reducing import dependence and boosting domestic manufacturing.
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Defence Public Sector Undertakings (DPSUs) and other public sector units accounted for around 76 per cent of the total production during 2025-26. The private sector contributed the remaining 24 per cent, up from 22 per cent in the previous fiscal year.
The ministry said the private sector's share reached an all-time high of about Rs 42,000 crore, highlighting its increasingly important role in India's defence ecosystem.
Officials said the rise in domestic production has also contributed significantly to the country's defence export performance. India recorded defence exports worth Rs 38,424 crore in 2025-26, the highest ever, reflecting growing international demand for Indian-made military equipment and systems.
The ministry said the achievements demonstrate the momentum generated by the government's push for self-reliance in defence manufacturing under the Aatmanirbhar Bharat programme.
With domestic production and exports continuing to rise, the government expects India's defence manufacturing sector to play an increasingly significant role in strengthening national security while contributing to economic growth.
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