India’s defence production reaches a record Rs 1.78 lakh crore in FY26, driven by stronger domestic manufacturing, higher private sector participation and growing defence exports under the Aatmanirbhar Bharat initiative. (Photo- akash prime defence system)akash prime defence system

India's defence production hits record Rs 1.78 lakh crore in FY26. Details

India's defence production touches a record Rs 1.78 lakh crore in FY26, backed by rising private sector participation, stronger domestic manufacturing and record defence exports, strengthening the country's self-reliance goals.

by · India Today

In Short

  • Defence production reaches a record Rs 1.78 lakh crore in FY26
  • Private sector contribution rises to an all-time high of around Rs 42,000 crore
  • Defence exports touch a record Rs 38,424 crore

India’s defence production has reached a new milestone, touching a record Rs 1.78 lakh crore in FY 2025-26. The latest growth in defence manufacturing and indigenous defence production comes as India continues to push for self-reliance under the Aatmanirbhar Bharat initiative.

The achievement also comes alongside record defence exports, showing how the country’s defence industry is expanding both at home and overseas.

With greater participation from private companies and continued policy support, the sector is gaining momentum year after year.

DEFENCE PRODUCTION GROWS SHARPLY

The Rs 1.78 lakh crore output marks a 15.6 per cent increase from Rs 1.54 lakh crore recorded in FY 2024-25.

The growth is even more striking over a longer period. Defence production has risen by 110 per cent since FY 2020-21, when it stood at Rs 84,643 crore.

Compared to FY 2013-14, indigenous defence production has grown almost four times from Rs 43,746 crore.

PRIVATE SECTOR STEPS UP

Defence Public Sector Undertakings (DPSUs) and other public sector units accounted for around 76 per cent of total production in FY26. The private sector contributed 24 per cent, up from 22 per cent a year earlier.

The private sector’s contribution reached an all-time high of around Rs 42,000 crore, showing its growing role in India’s defence ecosystem.

RECORD EXPORTS BOOST THE SECTOR

The rise in defence production has also helped India achieve record defence exports of Rs 38,424 crore in FY 2025-26. The growing export footprint points to increasing global demand for defence products made in India.

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SELF-RELIANCE PUSH DRIVES GROWTH

According to the Ministry of Defence, the latest figures show the steady progress of the government’s efforts to strengthen domestic defence manufacturing under the Aatmanirbhar Bharat programme.

Raksha Mantri Rajnath Singh credited Prime Minister Narendra Modi and the combined efforts of the Department of Defence Production, public sector units and private industry for the achievement.

In a post on X, he said, “India’s annual defence production has surged to an all-time high of Rs 1.78 lakh crore in the Financial Year (FY) 2025-26.”

With continued policy support, new initiatives, stronger private sector participation and rising export capabilities, India’s defence sector is expected to continue its growth trajectory in the coming years.

- Ends