India has achieved a historic milestone in defence manufacturing. Annual defence production reached an all-time high of ₹1,50,590 crore in FY 2024-25, according to the Ministry of Defence. This represents an 18% growth over last year and a massive 90% jump compared to FY 2019-20.
Strong Growth Across the Sector
Defence Public Sector Undertakings (DPSUs) and other public sector units contributed 77% of total production. The private sector’s share rose from 21% in FY 2023-24 to 23% this year, highlighting its growing role in the country’s defence ecosystem.
Both sectors performed strongly. DPSUs posted a 16% increase in production, while the private sector recorded a remarkable 28% growth. This expansion is the result of sustained policy reforms, streamlined regulations, and a decade-long push for indigenisation.
Raksha Mantri Lauds the Achievement
Raksha Mantri Shri Rajnath Singh praised the Department of Defence Production, DPSUs, public sector manufacturers, and private industry for their collective efforts. He called the growth a “clear indicator of India’s strengthening defence industrial base.”
The milestone also signals India’s capability to reduce import dependency while building a self-reliant and competitive defence manufacturing sector.
Aatmanirbhar Bharat in Action
The achievement is closely tied to the government’s Aatmanirbhar Bharat vision. The policy focus has shifted towards producing advanced defence systems domestically, ensuring strategic autonomy, and promoting exports.
Prime Minister Narendra Modi’s emphasis on creating a robust defence industrial complex has led to increased collaboration between public and private manufacturers. The result is a sector that not only meets India’s needs but also has growing potential in global markets.
Defence Exports Reach Record Levels
Alongside domestic production, defence exports have hit a new peak. In FY 2024-25, exports stood at ₹23,622 crore, up by ₹2,539 crore or 12.04% from ₹21,083 crore in FY 2023-24. These figures reflect India’s emergence as a reliable defence supplier to friendly nations.
The surge in exports is driven by demand for Indian-made aircraft parts, naval systems, armoured vehicles, and surveillance equipment. This trend is expected to continue as India strengthens its reputation in global defence trade.
Policy Reforms Driving Growth
Several key reforms have paved the way for this record-setting achievement:
- Liberalised FDI policies to attract global investment in defence manufacturing.
- Defence Production and Export Promotion Policy (DPEPP) to encourage innovation and exports.
- Positive Indigenisation Lists that mandate domestic sourcing for a growing number of defence items.
- Enhanced ease of doing business through faster licensing and project approvals.
Private Sector’s Rising Contribution
The private sector’s role is steadily expanding. With a 28% growth rate in FY 2024-25, companies are investing in advanced manufacturing capabilities, R&D, and partnerships with global defence giants.
Industry analysts note that private defence firms are increasingly focusing on niche technologies like unmanned systems, electronic warfare, and AI-driven defence solutions.
Why This Matters for India’s Future
- Reduces reliance on foreign defence imports.
- Creates high-value jobs and strengthens the skilled workforce.
- Boosts India’s standing as a global defence manufacturing hub.
- Encourages innovation in critical technologies.
- Supports national security through strategic self-reliance.
Looking Ahead
With continued policy support, growing private participation, and strong export performance, India’s defence sector is poised for even greater achievements. The ₹1.51 lakh crore milestone is not an endpoint but a launching pad for future growth.
Industry experts predict that the next decade will see India emerge as a top five global defence manufacturer, with a strong focus on indigenous innovation and collaborative projects with partner nations.
