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India News Updated Jun 17, 2026

India's Defence Production Hits Record Rs 1.78 Lakh Crore in FY26, Up 15.6%

India's annual defence production surged to an all-time high of Rs 1.78 lakh crore in FY26, marking a 15.6% increase from the previous year. The growth represents a staggering 110% rise since FY 2020-21, with production nearly quadrupling from FY 2013-14 levels. Defence Minister Rajnath Singh credited Prime Minister Narendra Modi's leadership for this achievement, highlighting the expanding defence industrial base. The private sector's contribution reached an all-time high of 24%, reflecting its growing role in the defence ecosystem.

India's defence production surges 15.6 pc to record Rs 1.78 lakh crore in FY26

New Delhi, June 17

In a significant development, India's annual defence production surged to an all-time high of Rs 1.78 lakh crore in the last financial year, the government said on Wednesday.

This represents a 15.6 per cent growth over the previous fiscal's (FY25) output of Rs 1.54 lakh crore, and a staggering 110 per cent increase since FY 2020-21 when the figure was Rs 84,643 crore.

The indigenous defence production has increased almost four times from Rs 43,746 crore in FY 2013-14, according to Defence Ministry.

Defence Minister Rajnath Singh credited the inspiring leadership of Prime Minister Narendra Modi for taking India's defence production to newer heights.

In a post on X, the minister lauded the collective efforts of the Department of Defence Production and public and private sectors for achieving the landmark.

He highlighted that the upward trajectory is a clear indicator of the country's expanding defence industrial base.

With sustained policy support, several new initiatives, increased private sector participation, and growing export capabilities, the defence production sector is poised for continued acceleration in the years ahead, Defence Minister added.

Defence Public Sector Undertakings and other PSUs accounted for approximately 76 per cent of total production, while the private sector contributed 24 per cent, which is a rise from 22 per cent in FY 2024-25.

The share of the private sector is at its all-time high of around Rs 42,000 crore in FY 2025-26, reflecting its expanding role in the defence ecosystem.

The growth in defence production over the years has tremendously contributed in achieving the record defence exports of Rs 38,424 crore in FY 2025-26.

"The achievement reflects the growing momentum of the Government's push for self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative, spearheaded by PM Modi," said the ministry.

— IANS

Reader Comments

Priya S

This is the kind of news that makes you feel optimistic about India's future. 110% increase since 2020-21 is phenomenal! But I wish the article had more details on which specific items are being produced—like are we making more fighter jets, warships, or just ammunition? Transparency would help build more trust. Still, kudos to the team working behind the scenes! 👏

Ravi K

Good numbers, but as someone who has family in the armed forces, I worry about quality over quantity. We've seen cases where indigenous equipment had teething issues. Hope the ministry is also investing in R&D and not just assembly lines. Also, exports of Rs 38,000 crore is great, but let's not forget our own defence needs first. Aatmanirbhar should mean our soldiers never have to wait for imported spare parts again.

Michael C

Impressive figures from an Indian perspective. The growth trajectory since 2013-14 (4x increase) shows consistent policy focus. However, I'm curious how these numbers compare to China or US in real terms. India's defence budget is still around 2% of GDP—can we sustain this production growth without blowing the budget? Would love to see a cost-benefit analysis.

Arjun K

Finally, some tangible results from the 'Make in India' push! 🚀 The private sector share going from 22% to 24% is good, but realistically we need it much higher—maybe 40-50% in next 5 years. Companies like Tata, Mahindra, and L&T have proven they can deliver world-class defence products. Also, hope this translates into more jobs for our engineering graduates. We need to reduce brain drain from defence R&D.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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