Defense Production Hits Record High in India

Download IPFS

India’s annual defense production has reached a record-breaking ₹1,50,590 crore (approximately $18.1 billion) for the financial year 2024-25, marking an all-time high. The announcement was made by Defense Minister Rajnath Singh on Saturday, who credited the achievement to the collective efforts of the public and private sectors. This milestone represents an impressive 18% growth over the previous fiscal year’s output of ₹1.27 lakh crore and a substantial 90% increase since FY 2019-20.

The minister’s announcement highlights a significant strengthening of India’s defense industrial base. Public Sector Undertakings (DPSUs) and other public sector entities accounted for approximately 77% of the total production, while the private sector contributed the remaining 23%. This marks a notable rise in the private sector’s share, which has increased from 21% in the previous year, reflecting its growing role in the country’s defense ecosystem.

According to officials, the upward trajectory is a direct result of long-term policy reforms, measures to improve the ease of doing business, and a determined focus on indigenization under the Aatmanirbhar Bharat (Self-Reliant India) initiative. The government’s push to reduce reliance on imports and foster a robust domestic manufacturing ecosystem is showing positive results, not only in meeting internal needs but also in boosting export capabilities.

Defense exports have also reached a new peak, soaring to ₹23,622 crore in FY 2024-25. This is an increase of over 12% from the previous year, further solidifying India’s position as a rising producer of defense equipment for global markets. Officials believe that with sustained policy support, increased private participation, and expanding export potential, the country’s defense sector is poised for continued acceleration in the years ahead.

The consistent year-on-year growth in both public and private segments of the industry is a clear indicator of the government’s successful strategy to promote self-reliance in defense manufacturing. The collective efforts of all stakeholders have not only boosted production numbers but also fostered an environment where the Indian defense industry can thrive and compete on a global scale.