India's annual defence production hits all-time high of Rs 1.78 lakh crore in FY 2025-26
India's annual defence production hit an all-time high of Rs 1.78 lakh crore in financial year 2025-26, the Ministry of Defence announced on June 16-17, 2026. The figure represents a 15.6% jump from Rs 1.54 lakh crore in FY 2024-25 and is more than double the Rs 84,643 crore recorded in FY 2020-21. The private sector's share rose to an all-time high of around Rs 42,000 crore (24%) in FY26, up from 22% the previous year, while Defence PSUs and other PSUs accounted for the remaining 76%. Defence exports also touched a record Rs 38,424 crore in FY26. Defence Minister Rajnath Singh reiterated the government's target of Rs 3 lakh crore in defence production by 2029 and Rs 50,000 crore in exports by the same year, underscoring India's Atmanirbhar Bharat push.
Key Facts & Details
9 points- 1India's defence production hit a record Rs 1.78 lakh crore in FY 2025-26, a 15.6% rise from Rs 1.54 lakh crore in FY24-25.
- 2Production has more than doubled (110% rise) since FY 2020-21, when it stood at Rs 84,643 crore.
- 3The private sector's share is at an all-time high of around Rs 42,000 crore (24%) in FY26, up from 22% in FY25; PSUs contributed the remaining 76%.
- 4Defence exports also recorded an all-time high of Rs 38,424 crore in FY 2025-26.
- 5Defence Minister Rajnath Singh has set a target of Rs 3 lakh crore in defence production and Rs 50,000 crore in exports by 2029.
- 6Indigenous capability gains include AK-203 rifles (Korwa), Tejas LCA, K9 Vajra-T, ammunition hubs and electronics/avionics under the Defence Acquisition Procedure 2020.
Deep Dive
- +The growth is driven by iDEX (Innovation for Defence Excellence), Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu, and the positive indigenisation lists that bar imports of items that can be made domestically.
- +Defence Public Sector Undertakings (DPSUs) include HAL, BEL, BDL, BEML, GRSE, MDL, GSL, MIDHANI and the new entities created from the corporatised Ordnance Factory Board.
- +India was the world's largest arms importer for decades; the FY26 numbers mark a structural shift towards becoming a net defence exporter in selected categories.
Exam Focus
Expect questions on the FY26 production figure (Rs 1.78 lakh crore), the YoY growth (15.6%), the private-sector share (24% / Rs 42,000 cr), the defence-exports figure (Rs 38,424 cr) and the 2029 targets (Rs 3 lakh cr production, Rs 50,000 cr exports).
Related Topics
Exam Relevance & Angle
This is a flagship Atmanirbhar Bharat / Make in India indicator that exam-setters routinely test. It pairs concrete numbers and growth rates with structural drivers (positive indigenisation lists, defence corridors, iDEX) and is highly relevant for banking GA, SSC and UPSC, especially as India shifts from being the world's biggest arms importer to a rising exporter.
Target Exams
Background & Context
Defence production in India is led by Defence Public Sector Undertakings (DPSUs) such as Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), BEML, Garden Reach Shipbuilders & Engineers (GRSE), Mazagon Dock Shipbuilders (MDL), Goa Shipyard (GSL) and MIDHANI, alongside the seven new entities created in 2021 from the corporatised Ordnance Factory Board. Private-sector growth is supported by reforms including the Defence Acquisition Procedure 2020, the iDEX (Innovation for Defence Excellence) scheme, the Strategic Partnership Model, defence industrial corridors in Uttar Pradesh and Tamil Nadu, and successive positive indigenisation lists that bar imports of items that Indian industry can supply. The Ministry of Defence's stated targets are Rs 3 lakh crore in annual production and Rs 50,000 crore in exports by 2029.
Related GK Concepts
Must KnowTest Yourself
1 / 2India's annual defence production in FY 2025-26 reached an all-time high of approximately:
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