Defence Manufacturing Boom: India Achieves ₹1.78 Lakh Crore Output, Private Sector Share Rises

Government companies (DPSUs and other PSUs) accounted for approximately 76 percent of this total production, while the private sector contributed 24 percent. Last year, the private sector's share was 22 percent. In the financial year 2025-26, the private sector produced approximately ₹42,000 crore, an all-time high. This demonstrates that private companies are playing a more active role in the defense sector than ever before.

This increase in defense production has also had a direct impact on exports. In the financial year 2025-26, India achieved a record defense export of ₹38,424 crore. The Ministry states that this achievement is a major success for Prime Minister Modi's "Atmanirbhar Bharat" campaign. India is now moving rapidly towards becoming self-reliant in the manufacturing of defense equipment. In 2013-14, defense production was ₹43,746 crore. Thus, it has increased nearly fourfold in the last few years.

Under the inspiring leadership of PM Shri @narendramodi, India’s defence production is reaching new heights every year. I am delighted to inform everyone that India’s annual defence production has surged to an all-time high of Rs 1.78 lakh crore in the Financial Year (FY)… — Rajnath Singh (@rajnathsingh) June 17, 2026

Defense Minister Rajnath Singh attributed this success to the inspiring leadership of Prime Minister Narendra Modi. In a post on the social media platform 'X', he praised the efforts of the Department of Defense Production, as well as the government and private sectors. He stated that this growth is a clear indication of the country's strengthening defense industrial base. Government policies, new initiatives, and increasing private sector participation will further accelerate this sector in the coming years.

Government companies (DPSUs and other PSUs) accounted for approximately 76 percent of this total production, while the private sector contributed 24 percent. Last year, the private sector's share was 22 percent. In the financial year 2025-26, the private sector produced approximately ₹42,000 crore, an all-time high. This demonstrates that private companies are playing a more active role in the defense sector than ever before.

This increase in defense production has also had a direct impact on exports. In the financial year 2025-26, India achieved a record defense export of ₹38,424 crore. The Ministry states that this achievement is a major success for Prime Minister Modi's "Atmanirbhar Bharat" campaign. India is now moving rapidly towards becoming self-reliant in the manufacturing of defense equipment.