Defence production hits record Rs 1.78 lakh crore in FY 2025-26

India's defence production has reached a record Rs 1.78 lakh crore in the financial year 2025-26, according to recent government data. This marks a significant milestone in the country’s push for self-reliance in defence manufacturing under the 'Make in India' initiative.

The Ministry of Defence attributed this growth to increased participation from private sector companies and streamlined policies encouraging domestic production. Over the past few years, India has focused on reducing its dependence on defence imports by promoting indigenous manufacturing capabilities.

The government has introduced several measures, including the Defence Production and Export Promotion Policy (DPEPP), to boost local manufacturing. These efforts have led to a steady rise in defence exports as well, showcasing India's growing capabilities in the global defence market.

This achievement aligns with India's broader goal of becoming a global hub for defence production. The record production figure reflects the success of ongoing reforms and the active involvement of both public and private sector players in the defence ecosystem.

Experts believe that this milestone will not only strengthen India's defence capabilities but also contribute significantly to the economy by creating jobs and fostering innovation in advanced technologies.

Key Points

• Defence production in FY 2025-26 reached Rs 1.78 lakh crore.
• Growth attributed to private sector participation and policy reforms.
• India aims to reduce defence import dependency under 'Make in India'.
• Defence exports have also seen a steady rise in recent years.

Source: Press Information Bureau (Govt. of India) press release, recent. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2273824