India’s Defence Production Reaches Record High

India’s annual defence production reached ₹1.78 lakh crore in Financial Year 2025-26. The figure was ₹84,643 crore in FY 2020-21 and ₹43,746 crore in FY 2013-14.

Defence Production in India

Defence production includes the manufacture of weapons, platforms, systems, ammunition, and related equipment for the armed forces. India’s defence industrial base includes Defence Public Sector Undertakings, ordnance factories, and private sector manufacturers.

Public and Private Sector Share

Defence Public Sector Undertakings and other public sector units contributed about 76% of total defence production in FY 2025-26. The private sector’s share rose to nearly ₹42,000 crore in FY 2025-26, which was 24% of total production.

Defence Exports and Budget Allocation

India recorded defence exports worth ₹38,424 crore in FY 2025-26. The Union Budget 2026 allocated ₹7.85 lakh crore for defence, including ₹2.19 lakh crore for military modernisation and capital acquisitions.

Important Facts for Exams

• India’s defence production crossed ₹1.78 lakh crore in FY 2025-26.
• Defence production was ₹84,643 crore in FY 2020-21 and ₹43,746 crore in FY 2013-14.
• Defence Public Sector Undertakings and other public sector units accounted for about 76% of production in FY 2025-26.
• Defence exports touched ₹38,424 crore in FY 2025-26.

Defence Manufacturing Framework

India’s defence manufacturing ecosystem includes public sector units, private firms, and licensed production facilities. The Aatmanirbhar Bharat initiative is linked with domestic production of defence equipment and reduction of import dependence.