India’s Defence Production Soars to Record ₹1.50 Lakh Crore in FY25

India’s annual defence production has surged to an unprecedented ₹1,50,590 crore in FY 2024-25, marking an 18% growth over the previous year’s ₹1.27 lakh crore. The achievement also reflects a remarkable 90% jump from FY 2019-20, when production stood at ₹79,071 crore.

Government’s Recognition of Industry Efforts

Raksha Mantri Shri Rajnath Singh lauded the collective contribution of the Department of Defence Production, Defence Public Sector Undertakings (DPSUs), other public sector entities, and private industry players. He described the milestone as a testament to India’s strengthening defence industrial base and a step forward in achieving self-reliance in defence manufacturing.

Public and Private Sector Contributions

DPSUs and other public sector units accounted for around 77% of total production, while the private sector contributed 23%. The private sector’s share has grown steadily, rising from 21% in FY 2023-24 to 23% in FY 2024-25, indicating its expanding role in the defence ecosystem.

• DPSU Growth: 16% year-on-year increase in FY 2024-25.
• Private Sector Growth: 28% rise year-on-year in the same period.

Policy Reforms and Indigenisation Drive

The sustained growth in both public and private segments is attributed to far-reaching policy reforms, ease of doing business measures, and the strategic emphasis on indigenisation over the past decade. The government’s Aatmanirbhar Bharat initiative, led by Prime Minister Shri Narendra Modi, has been a key catalyst in reducing import dependence and fostering a robust domestic defence manufacturing ecosystem.

Defence Exports See Growth

Defence exports also touched a record ₹23,622 crore in FY 2024-25, up ₹2,539 crore or 12.04% from the previous fiscal’s ₹21,083 crore. The focus on building an export-oriented defence industry has begun to yield results, expanding India’s footprint in the global defence market.

Also Read: Best Defence Stocks In India In August 2025!

Conclusion

India’s record defence production and rising exports underscore the success of its self-reliance strategy. With sustained policy support, growing private sector participation, and a focus on innovation, the defence manufacturing sector is well-positioned for continued acceleration, contributing to both national security and economic growth.

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