India’s defence manufacturing sector has recorded its strongest growth to date, with total production reaching ₹1.78 lakh crore in FY2025–26, a 110% surge over five years. The Ministry of Defence said the milestone reflects the country’s accelerating shift from a defence importer to a defence producer, driven by policy reforms, private‑sector participation and rising global demand for Indian military hardware.
The latest figure marks a 15.6% increase from the previous year’s ₹1.54 lakh crore and is nearly four times the output recorded in FY2013–14. Officials said the growth aligns with New Delhi’s push to strengthen indigenous capabilities amid geopolitical tensions and supply‑chain disruptions affecting global arms procurement.
A major structural shift is visible in the ecosystem. While Defence Public Sector Undertakings (DPSUs) still account for about 76% of total output, the private sector’s share has climbed to 24%, contributing roughly ₹42,000 crore in FY2025–26 — the highest ever. Private companies, MSMEs and start‑ups are increasingly involved in areas ranging from components and electronics to advanced weapons systems, aerospace platforms and naval technologies.
The transformation is also reflected in exports. India shipped defence equipment worth ₹38,424 crore in FY2025–26, signalling growing international acceptance of Indian‑made systems. Officials say export growth is being fuelled by competitive pricing, improved quality and expanding partnerships with friendly nations.
The shift from buyer to producer has been years in the making. Historically one of the world’s largest importers of military equipment, India relied heavily on foreign suppliers for fighter jets, submarines, artillery and advanced weapons. But global uncertainties and the Aatmanirbhar Bharat initiative have pushed the country to build domestic design, development and manufacturing capacity.
Defence Minister Rajnath Singh said the record output demonstrates India’s expanding industrial base and its long‑term goal of becoming a major global defence hub.