India’s annual defence production has reached a record ₹1.78 lakh crore in the financial year 2025–26, marking a 15.6% increase compared to the previous year. The Ministry of Defence confirmed that this is the highest-ever output, reflecting the success of the government’s Aatmanirbhar Bharat initiative.
Defence exports also touched an all-time high of ₹38,424 crore, positioning India as a growing supplier in the global defence market. Officials highlighted that production has more than doubled in the past five years, rising from ₹84,643 crore in 2020–21 to the current level.
Public sector undertakings contributed nearly 76% of the total output, while the private sector accounted for 24%, worth around ₹42,000 crore—the highest share ever recorded. Authorities noted that private industry participation is steadily expanding in manufacturing and exports.
The surge in production comes alongside a defence budget allocation of ₹7.85 lakh crore for 2026, including ₹2.19 lakh crore earmarked for modernisation projects. Major procurement plans, such as the proposed ₹3.25 lakh crore deal for 114 Rafale fighter jets, are expected to further boost domestic manufacturing.
Defence Minister Rajnath Singh hailed the achievement as a milestone in India’s journey towards self-reliance, emphasizing that the growth strengthens national security while creating new opportunities for industry and innovation.
