India’s Annual Defence Production Hits Record ₹1.78 Lakh Crore in FY26

 India's defence production touched an all-time high of ₹1.78 lakh crore in FY26, reflecting continued growth in domestic manufacturing capabilities and increased participation from both public and private sector companies. 

The latest figure marks a significant rise from previous years and highlights the expansion of the country's defence industrial base. 

Defence Production Registers Strong Growth 

Defence production increased 15.6% from ₹1.54 lakh crore recorded in FY25. 

Compared to FY21, when production stood at ₹84,643 crore, the latest figure represents growth of more than 110%, while output has nearly quadrupled from ₹43,746 crore reported in FY14. 

Public Sector Continues to Lead Output 

Defence Public Sector Undertakings (DPSUs) and other public sector entities accounted for around 76% of total defence production during FY26. 

These organisations continued to play a major role in manufacturing defence equipment and supporting indigenous capability development. 

Private Sector Contribution Reaches New High 

The private sector contributed approximately 24% of total defence production during FY26, up from 22% in the previous financial year. 

Private companies generated nearly ₹42,000 crore worth of defence production, marking the highest contribution recorded by the sector so far. 

Growth Supports Rising Defence Exports 

The expansion in domestic manufacturing coincided with record defence exports during FY26. 

India's defence exports reached ₹38,424 crore during the year, reflecting growing international demand for domestically manufactured defence products and systems. 

Focus On Self-Reliance Continues 

The growth in production aligns with the government's broader efforts to strengthen domestic defence manufacturing capabilities and reduce dependence on imports. 

Policy initiatives, greater industry participation, and increasing export opportunities have contributed to the sector's expansion over recent years. 

Read More: Defence Stocks Rally: Data Patterns, Paras Defence Surge Up to 9%; Strong Order Books Fuel Momentum! 

Conclusion 

India's defence production reached a record ₹1.78 lakh crore in FY26, supported by strong growth in domestic manufacturing and rising private sector participation. The milestone reflects the continued expansion of the country's defence ecosystem and its growing role in global defence markets. 

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