India’s Defence Production Hits Historic High of Rs. 1.51 Lakh Crore in FY 2024-25, Marks 90% Growth Since 2019.

New Delhi:

India’s defence production has achieved a historic milestone, soaring to an all-time high of Rs. 1,50,590 crore in the Financial Year 2024-25. This marks an impressive 18% increase over the previous year’s production of Rs. 1.27 lakh crore, and a staggering 90% surge since FY 2019-20, when the figure stood at Rs. 79,071 crore.

The Ministry of Defence announced the record-breaking achievement today, attributing the growth to a robust and maturing defence industrial base powered by policy reforms, growing private sector involvement, and a focused push for indigenisation under the Aatmanirbhar Bharat initiative.

Defence Minister Lauds Defence Ecosystem

Defence Minister Rajnath Singh hailed the development as a “clear indicator of India’s strengthening defence industrial base.” He credited the Department of Defence Production, Defence Public Sector Undertakings (DPSUs), and the increasingly dynamic private sector for playing a critical role in achieving this milestone.

“This performance is the outcome of consistent reform, dedication, and the united vision of building a self-reliant defence manufacturing ecosystem. It reflects our commitment to reducing dependency on imports and building a world-class indigenous capability,” said the Minister.

Sector-Wise Contribution and Growth

• Public sector manufacturers—including DPSUs and other PSUs—contributed around 77% of the total defence production.
• The private sector’s share rose to 23% in FY 2024-25, up from 21% in the previous year—an encouraging sign of increasing private investment and innovation in the defence space.

Production growth figures:

• DPSUs and PSUs: 16% growth
• Private Sector: 28% growth

This diversified growth across segments is being attributed to enhanced ease of doing business, policy liberalisation, production-linked incentives, and long-term capability development programs initiated over the past decade.

Aatmanirbhar Bharat Yields Tangible Results

The significant rise in defence output is a key marker of the Aatmanirbhar Bharat (Self-Reliant India) mission, which prioritises reducing import dependency and expanding indigenous manufacturing.

Under this initiative, the government has:

• Increased focus on domestic procurement for the armed forces.
• Introduced positive indigenisation lists.
• Streamlined defence procurement procedures.
• Enabled start-ups and MSMEs to participate in defence contracts.

Record Defence Exports Complement Production Surge

Adding further strength to the sector’s performance, India’s defence exports also touched a record high of Rs.23,622 crore in FY 2024-25, reflecting a 12.04% growth over the previous year’s export figure of Rs. 21,083 crore.

This dual success in both production and exports reinforces India’s emergence as a credible player in the global defence supply chain, and a key exporter of military equipment and systems to friendly nations.

Looking Ahead

With continued policy support, expanding participation of private entities, and a growing international footprint, India’s defence manufacturing sector is poised for sustained growth and global competitiveness.

The Ministry of Defence has signalled its commitment to maintaining this momentum in the coming years, with strategic investments in research & development, skill-building, and advanced defence technologies expected to drive the next phase of growth.