India Defence Production Hits Record ₹1.78 Lakh Crore in FY26

India’s defence production reached a new record of ₹1.78 lakh crore in FY 2025-26, compared with ₹1.54 lakh crore in FY 2024-25, marking a 15.6% year-on-year increase.

The sector has seen rapid growth over the past few years. Defence production has increased by 110% from ₹84,643 crore in FY 2020-21 and is nearly four times higher than the ₹43,746 crore recorded in FY 2013-14.

State-owned defence companies and PSUs remained the biggest contributors, accounting for around 76% of total production, while the private sector contributed 24%.

Private sector participation continued to expand, with its share rising from 22% in FY 2024-25 to a record 24% in FY 2025-26. Private companies produced defence equipment worth around ₹42,000 crore, the highest ever.

The increase in domestic defence manufacturing has also supported India’s export ambitions. Defence exports climbed to a record ₹38,424 crore in FY 2025-26, reflecting growing international demand for Indian-made military equipment and systems.

The data highlights the steady expansion of India’s defence industrial base, with stronger local manufacturing capabilities, greater private sector involvement, and rising exports reducing dependence on imports and strengthening the country’s self-reliance goals.