India's defence production hits record high, surpasses Rs 1.5-lakh crore mark

India’s annual defence production has soared to an all-time high of Rs 1,50,590 crore in the 2024-25 financial year (FY), the Ministry of Defence announced on Saturday.

The milestone represents a robust 18-per cent growth over the previous fiscal's output of Rs 1.27 lakh crore, and a staggering 90-per cent increase since the 2019-20 FY, when the figure was Rs 79,071 crore.

Defence Minister Rajnath Singh has lauded the collective efforts of the Department of Defence Production and all stakeholders — that is the Defence Public Sector Undertakings, public sector manufacturers, and the private industry in achieving this landmark.

The minister said the upward trajectory was a clear indicator of India's strengthening defence industrial base.

Defence Public Sector Undertakings (DPSUs) and other PSUs accounted for approximately 77 per cent of the total production, while the private sector contributed 23 per cent.

The share of the private sector, which increased from 21 per cent in the 2023-24 FY to 23 per cent in the 2024-25 FY reflects the sector's growing role in the defence ecosystem of the country.

Both public and private segments of the industry have demonstrated consistent year-on-year growth, attributed to far-reaching policy reforms, enhanced ease of doing business, and a strategic focus on indigenisation over the past decade.

The overall production of DPSUs and private sector has increased by 16 per cent and 28 per cent respectively in 2024-25.

The MoD said this was record-setting achievement and underscored the growing momentum of the government’s push to self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative spearheaded by Prime Minister Narendra Modi.

The emphasis to reduce the dependency on imports and create a defence industrial complex that not only caters to India's needs but also strengthens the potential of exports has shown positive results.

Separately, defence exports have been to the tune of Rs 23,622 crore in 2024-25. It was a growth of Rs 2,539 crore or 12.04 per cent over the defence export figure of the 2023-24 FY, which was Rs 21,083 crore.