![](https://bharatshakti.in/wp-content/uploads/2024/03/LT-BSI-Defence.gif")
India’s defence production reached Rs 1.78 lakh crore in 2025-26, a 15.6 per cent increase over the previous fiscal, underscoring the continued expansion of the country’s indigenous military manufacturing base.
According to figures released by the Defence Ministry on Wednesday, defence output rose from Rs 1.54 lakh crore in FY 2024-25 to Rs 1.78 lakh crore in FY 2025-26, marking a more than 110 per cent jump since FY 2020-21, when the value of domestic production stood at Rs 84,643 crore. Compared to FY 2013-14, when defence production was pegged at Rs 43,746 crore, the latest figures reflect a nearly four-fold increase.
The latest milestone comes amid the government’s sustained push to reduce import dependence and strengthen domestic manufacturing capabilities under the Atmanirbhar Bharat programme.
While Defence Public Sector Undertakings (DPSUs) and other public sector entities continued to dominate the sector, accounting for around 76 per cent of total production, the private sector also recorded improved performance. Private industry contributed nearly 24 per cent of overall output, up from 22 per cent in the previous year, with production estimated at Rs 42,000 crore.
A rise in overseas sales has accompanied the growing role of private companies in the defence ecosystem. The increase in domestic manufacturing helped India achieve record defence exports worth Rs 38,424 crore in FY 2025-26, further strengthening the country’s position in the global defence market.
The latest numbers continue a trend witnessed over the past several years. Defence production had reached Rs 1.50 lakh crore in FY 2024-25, following a steady rise driven by procurement reforms, indigenisation measures and efforts to improve the ease of doing business in the sector.
Government officials assert that a strong order pipeline, increasing industrial participation, and rising acceptance of Indian-made military equipment in foreign markets suggest the defence manufacturing sector will continue to grow in the coming years.
Team BharatShakti
