India's Defence Sector Achieves Record Production and Export Growth
Significant Milestones in Defence Production
File image of India displaying military competence during Republic Day (Photo: AT)
New Delhi, June 17: India's defence industry has reached remarkable milestones, achieving record production levels and a significant increase in exports, showcasing the nation's commitment to self-sufficiency and enhanced competitiveness in military manufacturing.
As per a statement from the Ministry of Defence released on Wednesday, the total value of defence production hit a historic high of ₹1.78 lakh crore for the financial year 2025–26, reflecting a 15.6% rise from ₹1.54 lakh crore in 2024–25.
This new figure also marks a staggering 110% increase from ₹84,643 crore recorded in 2020–21, highlighting the sector's impressive growth over the last five years.
Defence Minister Rajnath Singh noted that this surge in production signifies the expanding defence industrial base of India and credited the achievement to the collaborative efforts of various stakeholders.
"This upward trend is a clear sign of the country's growing defence industrial base," Singh stated.
He further emphasized that with ongoing policy support, new initiatives, increased involvement from the private sector, and enhanced export capabilities, the defence production sector is set for further growth.
India's defence exports have also reached a record high of ₹38,424 crore in 2025–26, a dramatic increase from just ₹686 crore in 2013–14.
According to an official factsheet from the Ministry, Indian-manufactured military equipment is now being exported to over 80 nations.
The government attributes this growth to a series of structural reforms and policy initiatives, including the Defence Acquisition Procedure (DAP) 2020 and the Defence Procurement Manual (DPM) 2025, which have streamlined procurement processes and expanded opportunities for private sector involvement.
The Ministry highlighted the crucial role of the Defence Research and Development Organisation (DRDO) in advancing indigenous technologies through partnerships with industry.
Over the past decade, the overall defence ecosystem has seen substantial financial growth.
India's defence budget has risen from ₹2.53 lakh crore in 2013–14 to ₹7.85 lakh crore in 2026–27, while the expenditure on defence research and development has more than doubled from ₹13,716.14 crore in 2014–15 to ₹29,100.25 crore in 2026–27.
Since 2022–23, the government has allocated 25% of defence R&D spending to industry, startups, and academic institutions to foster innovation and accelerate the development of indigenous capabilities.
Officials noted that initiatives like SRIJAN DEEP, Positive Indigenisation Lists, and relaxed foreign direct investment norms have expanded opportunities for private companies and micro, small, and medium enterprises (MSMEs).
In 2024, the government allocated ₹1,757 crore for industry-linked defence research and development. The Ministry also mentioned that several world-class DRDO facilities have been made accessible to private industry under a framework of standard operating procedures aimed at enhancing transparency and collaboration.
Industry representatives stated that these policy reforms have effectively narrowed the gap between research and deployable military systems.
The government reiterated that the ongoing expansion of the sector aligns with its broader goal of establishing a "self-reliant and future-ready" defence ecosystem in line with its Vision 2047 objectives.