India has achieved a major milestone in its journey towards defence self-reliance, with annual defence production reaching an all-time high of ₹1.78 lakh crore in the financial year 2025-26. Defence Minister Rajnath Singh announced the achievement, describing it as a reflection of the country's rapidly expanding defence industrial base and the success of sustained policy reforms aimed at strengthening indigenous manufacturing.
In a post on social media, Singh highlighted that the latest figure represents a robust 15.6 per cent increase over the previous fiscal year's defence production output of ₹1.54 lakh crore. The growth becomes even more significant when viewed over a longer period. Compared to FY 2020-21, when defence production stood at just over ₹84,000 crore, the sector has recorded a remarkable increase of more than 110 per cent.
The Defence Minister also pointed to the dramatic rise in indigenous defence production over the past decade. From ₹4,746 crore in FY 2013-14, domestic defence manufacturing has expanded nearly fourfold, underlining the transformation of India’s defence ecosystem under the government's push for self-reliance through the ‘Aatmanirbhar Bharat’ initiative.
According to Singh, the record-breaking performance is the result of coordinated efforts by the Department of Defence Production, public sector undertakings, private industry, start-ups, and other stakeholders involved in the defence manufacturing value chain. He noted that the sector has witnessed significant momentum due to reforms aimed at boosting domestic production, reducing dependence on imports, and encouraging innovation.
Over the past few years, the government has introduced a series of measures to strengthen indigenous capabilities. These include positive indigenisation lists, increased procurement from domestic manufacturers, liberalised foreign direct investment norms, support for defence start-ups through innovation programmes, and greater participation by private companies in defence production projects.
The expanding role of the private sector has emerged as a key driver of growth. Indian companies are increasingly contributing to the development and manufacture of advanced military platforms, weapons systems, aerospace components, and defence technologies. Simultaneously, India's defence exports have witnessed steady growth, helping domestic manufacturers access international markets and enhance their global competitiveness.
Singh expressed confidence that the upward trajectory of defence production will continue in the coming years. He emphasised that with sustained policy support, new initiatives, growing private-sector participation, and rising export potential, India is well-positioned to further strengthen its defence manufacturing capabilities.
The latest achievement not only reinforces India's strategic objective of achieving self-reliance in defence but also signals its emergence as a significant player in the global defence production landscape.
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