India’s defence output climbs to record ₹1.78 lakh crore in FY 2025-26

New Delhi: India’s annual defence production touched an all-time high of ₹1.78 lakh crore in Financial Year 2025-26, up 15.6% from ₹1.54 lakh crore in the previous year, according to data released by the Ministry of Defence on Wednesday. The figure is more than double the ₹84,643 crore recorded in Financial Year 2020-21 and nearly four times the ₹43,746 crore logged in Financial Year 2013-14, reflecting the long-term expansion of the country’s domestic defence manufacturing capacity.

State-owned defence firms and other public sector units accounted for about 76% of total output, while the private sector contributed 24%, up from 22% in Financial Year 2024-25. In value terms, private industry’s contribution reached an all-time high of around ₹42,000 crore, indicating a steadily larger role for non-state manufacturers in India’s defence production ecosystem.

The ministry said the rise in domestic output has also supported defence exports, which climbed to a record ₹38,424 crore in Financial Year 2025-26. Together, the production and export figures suggest that India’s long-running push for greater self-reliance in military manufacturing is beginning to produce broader industrial and commercial results, though public sector companies still dominate the output mix.

In a post on X, the defence minister, Rajnath Singh, said the latest milestone reflected the leadership of the prime minister, Narendra Modi, and the combined efforts of the Department of Defence Production as well as public- and private-sector companies. He said the sustained rise in output pointed to a widening defence industrial base and argued that policy support, stronger private participation and growing export capability could help maintain the momentum in the coming years.

The figures are significant because they show that private-sector participation is rising even as public sector undertakings remain the backbone of India’s defence manufacturing base. For policymakers, the next test will be whether this growth translates into faster induction of indigenous systems by the Armed Forces, deeper supply-chain capacity, and a broader export footprint in competitive global markets.