PIB TrackerIndia's defence production hits a record Rs 1.78 lakh crore in 2025-26
Annual defence production rose 15.6% to an all-time high of Rs 1.78 lakh crore, with the private sector's share at a record ~Rs 42,000 crore — underlining the Aatmanirbhar push in defence manufacturing.
What happened
- India's annual defence production surged to an all-time high of Rs 1.78 lakh crore in FY 2025-26 — a 15.6% rise over the previous year's Rs 1.54 lakh crore.
- The figure marks a 110% increase since FY 2020-21 (Rs 84,643 crore) and is nearly four times the FY 2013-14 level of Rs 43,746 crore.
- Defence PSUs and other PSUs accounted for ~76% of output, while the private sector contributed 24% (up from 22%), reaching an all-time high of around Rs 42,000 crore.
- The growth also underpinned record defence exports of Rs 38,424 crore in FY 2025-26.
- Defence Minister Rajnath Singh credited the Department of Defence Production and both sectors, framing the result as momentum for self-reliance under Aatmanirbhar Bharat and an expanding defence industrial base.
For Prelims
- Defence production base: India's output is led by Defence PSUs (e.g. HAL, BEL, BDL, BEML, the post-2021 corporatised ordnance entities) plus a growing private sector (~24% share).
- Aatmanirbhar measures: Self-reliance is driven by positive indigenisation lists (items reserved for domestic procurement), the Defence Acquisition Procedure (DAP) 2020 with a 'Buy Indian' priority, and a higher domestic-capital-procurement budget share.
- Innovation schemes: iDEX (Innovations for Defence Excellence) funds start-ups/MSMEs, and the ADITI scheme supports critical/strategic defence technologies.
- Defence corridors: Two Defence Industrial Corridors — in Uttar Pradesh and Tamil Nadu — anchor manufacturing clusters.
- Targets: The Government targets ~Rs 3 lakh crore of defence production and Rs 50,000 crore of defence exports by 2029.
- Exports: India now exports to 90+ countries; major platforms include the BrahMos missile, Dornier aircraft, radars and armoured vehicles.
- Don't confuse: 'Defence production' (total domestic manufacturing value) is distinct from 'defence exports' (the share sold abroad); DPSU output and private-sector output are reported separately.
For UPSC: India's defence production reached a record Rs 1.78 lakh crore in FY 2025-26 (15.6% growth), with private-sector share at a record ~Rs 42,000 crore and exports at Rs 38,424 crore. Anchor the Aatmanirbhar-in-defence toolkit — positive indigenisation lists, DAP 2020 'Buy Indian', iDEX/ADITI, the UP and Tamil Nadu defence corridors — and the 2029 targets (~Rs 3 lakh cr production, Rs 50,000 cr exports).
What it is NOT: 'Defence production' (total value of domestic manufacturing) is not the same as 'defence exports' (Rs 38,424 cr, the part sold abroad). The private sector's share is 24% — DPSUs/PSUs still account for ~76% of output; the record is a production figure, not a procurement or budget figure.
For Mains
Syllabus: GS3.12 · GS3.17 · Linkage L1
Anchor
Self-reliance in defence (Aatmanirbharta) — indigenous manufacturing and a widening defence industrial base reducing import dependence.
Substantiation (data)
Record Rs 1.78 lakh cr production (FY25-26, +15.6%); private sector ~Rs 42,000 cr (24%); exports Rs 38,424 cr; targets Rs 3 lakh cr / Rs 50,000 cr by 2029.
Exemplification
Cite positive indigenisation lists, iDEX/ADITI, DAP 2020 and the UP/Tamil Nadu corridors as instruments that scaled domestic defence production and exports.
Problematisation
Dependence on imported critical components/engines, R&D and design gaps, long acquisition timelines and quality assurance remain constraints.
Way-forward
Deepen private-sector and MSME participation, invest in defence R&D and critical technologies, ease procurement, and grow exports through G2G channels.
Position
Government stance: rising production and exports validate the Aatmanirbhar Bharat push, strengthening strategic autonomy and the defence industrial base.
Deploys into: Defence indigenisation & Aatmanirbharta · defence industrial base & private participation · defence exports & strategic autonomy · innovation (iDEX/ADITI) (GS3.12 indigenisation & new technology, GS3.17 security & defence).
Ministry of Defence · 2026-06-17 · PRID 2273824 · PIB source ↗