DefenceProduction – India Achieves Record Defence Manufacturing Growth in FY26

DefenceProduction –   India’s defence manufacturing sector recorded its highest-ever annual output in the financial year 2025-26, reflecting the country’s growing capabilities in military production and its broader push towards self-reliance. According to figures released by the government on Wednesday, total defence production reached Rs 1.78 lakh crore during FY26, setting a new benchmark for the industry.

Strong Growth Compared to Previous Years

The latest production value marks a rise of 15.6 per cent compared to FY25, when defence output stood at Rs 1.54 lakh crore. The increase is even more significant when viewed over a longer period. Since FY2020-21, when production was valued at Rs 84,643 crore, the sector has expanded by more than 110 per cent.

Data from the Ministry of Defence also shows substantial long-term growth. Defence manufacturing output has nearly quadrupled from Rs 43,746 crore recorded during FY2013-14, highlighting a decade of steady expansion in the sector.

Government Credits Policy Support and Industry Participation

Defence Minister Rajnath Singh welcomed the achievement and attributed the milestone to the leadership and policy direction provided by Prime Minister Narendra Modi. In a message shared on social media platform X, the minister praised the efforts of the Department of Defence Production along with public and private industry stakeholders.

According to Singh, the latest figures demonstrate the increasing strength of India’s defence industrial ecosystem. He noted that continued reforms and strategic initiatives have helped create an environment that encourages domestic manufacturing and technological development.

Private Sector Expands Its Presence

A notable feature of the FY26 data is the growing contribution of private companies. While Defence Public Sector Undertakings and other government-owned enterprises continued to dominate production, accounting for around 76 per cent of the total output, the private sector’s share increased to 24 per cent.

The private sector contribution reached approximately Rs 42,000 crore during the year, representing its highest participation level so far. This growth reflects increasing investment, manufacturing capacity, and involvement of private firms in defence-related projects and supply chains.

Export Performance Receives Additional Boost

The rise in domestic production has also supported India’s expanding defence export market. Government figures indicate that defence exports touched a record Rs 38,424 crore in FY26, benefiting from stronger manufacturing capabilities and wider international outreach.

Industry observers view the export performance as an important indicator of the competitiveness of Indian-made defence equipment in global markets. Increased production capacity has enabled manufacturers to cater to both domestic requirements and overseas demand.

Focus on Self-Reliance Continues

The Ministry of Defence stated that the latest achievement reflects the progress made under the government’s efforts to strengthen indigenous manufacturing. Officials noted that policy measures encouraging domestic production, greater participation by private industry, and investment in advanced technologies have contributed to the sector’s growth.

With ongoing reforms, rising export opportunities, and sustained government support, India’s defence manufacturing industry is expected to remain on a growth path in the coming years. The record production figures underscore the country’s ambition to build a stronger and more self-sufficient defence ecosystem while reducing dependence on imported military equipment.