India's defence production hits all-time high of Rs 1.78 lakh crore in 2025-26

India's annual defence production touched an all-time high of Rs 1.78 lakh crore in the financial year 2025 to 2026. The rise highlights stronger private sector participation, higher exports and the self-reliance push.

In Short

• Defence output rose 15.6% from last year, extending a multiyear growth streak
• Production has more than doubled since FY21 and nearly quadrupled since FY14
• Private sector share rose to Rs 42,000 crore, its highest ever

India's annual defence production hit an all-time high of Rs 1.78 lakh crore in the 2025-2026 financial year, the defence ministry said on Wednesday. This represents a 15.6 per cent growth over the previous fiscal's output of Rs 1.54 lakh crore and a massive 110 per cent increase since 2020-2021 when the figure was Rs 84,643 crore.

The indigenous defence production has grown nearly four times from Rs 43,746 crore in financial year 2013-2014.

Undertakings and other PSUs accounted for approximately 76 per cent of total production, while the private sector contributed 24 per cent, which is a rise from 22 per cent in fiscal 2024 to 25.

The share of the private sector also hit its all-time high of around Rs 42,000 crore in 2025-2026.

Taking to X, Defence Minister Rajnath Singh credited the leadership of Prime Minister Narendra Modi, and the "collective efforts" of the Department of Defence Production and all other stakeholders for the staggering growth in defence production.

"This upward trajectory is a clear indicator of the country's expanding defence industrial base. With sustained policy support, several new initiatives, increased private sector participation, and growing export capabilities, the defence production sector is poised for continued acceleration in the years ahead," Rajnath Singh tweeted.

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