India's Defence Production At An All-Time High of Rs 1.78 Lakh Crore
India's defence production has surged to a record high of Rs 1.78 lakh crore in the financial year 2025-26. In the same year, India's defence exports reached a record Rs 38,424 crore. Read this article to learn the key data and important highlights contributing to this growth in India's defence capabilities.
India's defence production has surged to a record high of Rs 1.78 lakh crore in the financial year 2025-26. In a post on social media platform X, Union Defence Minister Rajnath Singh said, "This milestone represents an impressive 15.6 per cent growth over the previous fiscal year's output of Rs 1.54 lakh crore in 2024-25 and a staggering 110 per cent increase since FY 2020-21, when the figure was Rs 84,643 crore." The indigenous defence production has increased nearly fourfold from Rs 43,746 crore in FY 2013-14, he added.
Under the inspiring leadership of PM Shri @narendramodi, India’s defence production is reaching new heights every year. I am delighted to inform everyone that India’s annual defence production has surged to an all-time high of Rs 1.78 lakh crore in the Financial Year (FY)…
— Rajnath Singh (@rajnathsingh) June 17, 2026
The remarkable rise in India's defence production in recent years reflects India's expanding defence industrial base, driven by "sustained policy support, several new initiatives, increased private sector participation, and growing export capabilities", said Defence Minister Rajnath Singh in the post. Meanwhile, India's defence exports reached a record Rs 38,424 crore in FY 2025-26 from Rs 686 crore in FY 2013-14. Let us learn the key data and important highlights contributing to this growth in India's defence capabilities.
India's Defence Production At An All-Time High of Rs 1.78 Lakh Crore: Key Points
India's defence capabilities have transformed significantly over the past 12 years, driven by policy reforms under the Atmanirbhar Bharat and Make in India, and landmark initiatives including the Defence Acquisition Procedure (DAP) 2020, Defence Procurement Manual (DPM) 2025, Positive Indigenisation Lists (2020), and Innovations for Defence Excellence (iDEX).
India's defence sector witnessed a boost in domestic manufacturing and innovation and increased participation from private and MSME players. DRDO has had a pivotal role in developing cutting-edge defence technologies.
In FY 2025-26, Defence Public Sector Undertakings and other PSUs contributed around 76 per cent of total production, while private sector's share showed an increase of 24 per cent.
The overall defence budget of India has increased from Rs 2.53 lakh crore in FY 2013-14 to Rs 7.85 lakh crore in FY 2026-27.
Capital expenditure has risen sharply from Rs 94,587.95 crore in 2014-15 to Rs 2.19 lakh crore in 2026-27. Capital expenditure in the defence budget refers to the funds used for modernisation, long-term acquisition, and creation of military assets.
Defence research and development allocation also increased from Rs 13,716.14 crore in FY 2014-15 to Rs 29,100.25 crore in FY 2026-27, witnessing a 112 per cent rise.
In 2022-23, the government also opened 25 per cent of the defence R&D to industry, academia, and startups.
India's defence exports increased to Rs 38,424 crore in FY 2025-26: Key Points
India's defence exports rise from Rs 686 crore in FY 2013-14 to Rs 38,424 crore in FY 2025-26 marked a growth of over 5500 per cent in 12 years.
The increase in the country's defence exports is largely driven by the Make in India and self-reliance in defence production.
India has also transitioned from a major importer to a major defence manufacturer and exporter. About 65 per cent of defence equipment are now produced domestically, a stark comparison from the eariler import dependence of 75 to 70 per cent.
India exports defence products to over 80 countries. The government has set a target of Rs 50,000 crore in defence exports by 2029.
Roopashree Sharma is an experienced broadcast journalist with over 7 years of experience, specialising in beats including geopolitics, defence, and general awareness. She has worked in the roles of correspondent and producer for leading media houses, including Zee, WION, and Economic Times. Currently serving as Deputy Manager – Editorial at Jagran New Media, she produces explainer articles and videos for the General Knowledge (GK) section of the Jagran Josh (English) portal. For inquiries, contact her at roopashree.sharma@jagrannewmedia.com.
