India’s defence production hits record Rs 1.78 lakh crore in FY26, Rajnath Singh hails milestone
New Delhi: India’s defence production reached an all-time high of ₹1.78 lakh crore in the financial year 2025-26, marking a significant milestone in the country’s journey towards self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative.
According to the Ministry of Defence (MoD), defence production registered a 15.6 per cent increase over the previous fiscal year’s output of ₹1.54 lakh crore. The growth has been even more pronounced over the longer term, with production rising by 110 per cent since FY 2020-21, when the figure stood at ₹84,643 crore.
The latest achievement also highlights the rapid expansion of indigenous manufacturing capabilities. Defence production has nearly quadrupled from ₹43,746 crore recorded in FY 2013-14, reflecting sustained investments in domestic defence industrial capacity over the past decade.
Defence Minister Rajnath Singh Credits PM Modi’s Leadership
Defence Minister Rajnath Singh hailed the achievement and credited Prime Minister Narendra Modi’s leadership for the sector’s rapid growth.
In a post on X, Singh said the record production figures reflected the success of the Government’s efforts to strengthen indigenous defence manufacturing and build a robust defence industrial base.
He noted that the remarkable increase in production had been made possible through the collective efforts of the Department of Defence Production, public sector enterprises, private industry, and other stakeholders.
The Defence Minister described the continued rise in production as a clear indication of India’s expanding manufacturing capabilities and growing self-reliance in critical defence technologies.
Public and Private Sectors Drive Growth
Defence Public Sector Undertakings (DPSUs) and other public sector entities continued to play a dominant role in production, accounting for nearly 76 per cent of the total output during FY26.
However, the private sector’s contribution reached a record level, accounting for 24 per cent of total defence production, up from 22 per cent in the previous financial year. Private companies contributed approximately ₹42,000 crore, the highest-ever participation by the sector in India’s defence manufacturing ecosystem.
The Ministry said the growing role of private industry reflects the success of government initiatives aimed at encouraging greater participation of domestic companies in defence production and innovation.
Defence Exports Also Reach Record High
The strong growth in domestic manufacturing has also contributed to a significant rise in defence exports.
India’s defence exports touched a record ₹38,424 crore in FY26, underlining the increasing global acceptance of Indian-made defence equipment and platforms.
The Government views the twin achievements of record production and exports as evidence of the growing competitiveness of India’s defence industry and its expanding footprint in international markets.
Sector Poised for Further Expansion
The Government has introduced a series of measures in recent years to promote indigenous design, development, and manufacturing of defence equipment. These include positive indigenisation lists, reforms in defence acquisition procedures, incentives for domestic manufacturers, and initiatives aimed at boosting exports.
With rising investments, expanding production capacities, and increasing global demand for Indian defence products, policymakers expect the country’s defence manufacturing sector to maintain its growth momentum.
(DD News)
