Defence Production Hits Record High Amid Self-Reliance Push
India's defence production has achieved a historic milestone, surging by 110 per cent over the last five years to reach a record Rs 1.78 lakh crore in FY2025-26. The remarkable growth reflects a fundamental transformation in the country's defence ecosystem, driven by sustained policy support, expanding domestic manufacturing capabilities, and growing confidence in indigenous military technology. The achievement marks one of the strongest indicators yet of India's ambition to become a major defence manufacturing and export hub.
From Defence Buyer to Defence Producer
For decades, India was among the world's largest importers of military equipment, depending heavily on foreign suppliers for critical platforms such as fighter aircraft, artillery systems, submarines, air defence systems, and advanced weaponry. While these imports strengthened India's military capabilities, they also exposed the country to strategic vulnerabilities, supply chain uncertainties, and significant foreign exchange outflows.
The shift began with a determined focus on self-reliance under the Atmanirbhar Bharat initiative. Through policy reforms, increased domestic procurement, technology development, and support for indigenous manufacturing, India steadily reduced its dependence on imports. As a result, defence production has climbed from Rs 84,643 crore in FY2020-21 to Rs 1.78 lakh crore in FY2025-26, reflecting a comprehensive transformation of the sector.
The 110% Growth Story
The latest figures represent more than a numerical achievement. The sector recorded annual growth of 15.6 per cent over FY2024-25, with expansion visible across aerospace systems, missiles, naval platforms, armoured vehicles, defence electronics, ammunition, and advanced weapon systems.
The increase demonstrates that indigenous manufacturing is no longer limited to low-end components but increasingly covers sophisticated platforms that were once imported. This evolution has strengthened domestic capabilities while creating a broader industrial ecosystem supporting research, innovation, and high-value production.
Private Sector Participation Reshapes the Ecosystem
One of the most significant aspects of this transformation has been the growing role of private industry. The traditional dominance of Defence Public Sector Undertakings (DPSUs) is now complemented by an increasingly competitive private sector.
DPSUs accounted for 54.84 per cent of defence exports, while private firms contributed an impressive 45.16 per cent. Private sector exports rose to Rs 17,353 crore, while DPSU exports surged to Rs 21,071 crore. The number of defence exporters also increased from 128 to 145, with Indian-made defence products now reaching more than 80 countries.
This balanced participation highlights the emergence of a collaborative defence-industrial framework capable of driving innovation and scaling production.
Defence Exports Reach New Highs Amid Global Military Spending Boom
India's defence exports touched a record Rs 38,424 crore in FY2025-26, registering a 62.66 per cent increase over the previous year and nearly tripling over five years. Export growth is particularly significant because it reflects international confidence in the quality, reliability, and competitiveness of Indian defence products.
The achievement comes at a time when global military expenditure continues to rise. According to international estimates, worldwide military spending reached $2.887 trillion in 2025, marking the eleventh consecutive year of growth. As the world's fifth-largest military spender, India is increasingly positioned to benefit from expanding global demand for defence equipment.
A New Strategic Identity for India
India's defence manufacturing success represents far more than an industrial achievement. It signals the emergence of a nation that is steadily transitioning from one of the world's largest defence buyers to a credible producer and exporter of advanced military systems. With strong participation from both public and private sectors, rising exports, and growing global acceptance of indigenous technologies, India is strengthening its strategic autonomy while building a sustainable defence-industrial base. The record production figures underscore a larger reality: India's defence sector is no longer focused solely on meeting domestic requirements but is increasingly positioning itself as a trusted partner in the global defence marketplace.
(With agency inputs)
