India’s defence production surges 15.6 pc to record Rs 1.78 lakh crore in FY26

India’s defence production reached a record Rs 1.78 lakh crore in FY26, marking 15.6% annual growth and a 110% rise since FY21. The government credited policy reforms, increased private sector participation, and the Aatmanirbhar Bharat initiative for the milestone achievement

New Delhi: In a significant development, India’s annual defence production surged to an all-time high of Rs 1.78 lakh crore in the last financial year (FY26), the government said on Wednesday. This represents a 15.6 per cent growth over the previous fiscal’s (FY25) output of Rs 1.54 lakh crore, 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 almost four times from Rs 43,746 crore in FY 2013-14, according to Defence Ministry. Defence Minister Rajnath Singh credited the inspiring leadership of Prime Minister Narendra Modi for taking India’s defence production to newer heights.

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In a post on X, the minister lauded the collective efforts of the Department of Defence Production and public and private sectors for achieving the landmark. He highlighted that the upward trajectory is a clear indicator of the country’s expanding defence industrial base. With sustained policy support, several new initiatives, increased private sector participation, and growing export capabilities, the defence production sector is poised for continued acceleration in the years ahead, Defence Minister added.

Defence Public Sector Undertakings and other PSUs accounted for approximately 76 per cent of total production, while the private sector contributed 24 per cent, which is a rise from 22 per cent in FY 2024-25. The share of the private sector is at its all-time high of around Rs 42,000 crore in FY 2025-26, reflecting its expanding role in the defence ecosystem.

The growth in defence production over the years has tremendously contributed in achieving the record defence exports of Rs 38,424 crore in FY 2025-26.

“The achievement reflects the growing momentum of the Government’s push for self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative, spearheaded by PM Modi,” said the ministry.