India's defence production reached a record Rs 1.78 lakh crore during the financial year 2025-26, according to the Ministry of Defence. The milestone represents a growth of 15.6 percent over the previous fiscal year's production value of Rs 1.54 lakh crore and more than doubles the output recorded in FY21, when defence production stood at Rs 84,643 crore.

The sharp increase in production highlights the progress made under the government's push for self-reliance in defence manufacturing through the Atmanirbhar Bharat initiative. Over the past few years, policymakers have introduced multiple measures aimed at strengthening domestic defence capabilities, including import restrictions on select equipment, higher procurement from Indian manufacturers, and greater participation from the private sector.

The growth in defence production has been supported by both Defence Public Sector Undertakings and private industry participants involved in manufacturing military platforms, weapons systems, electronics, aerospace components, and defence equipment. Increased domestic procurement and a rising focus on exports have also contributed to the sector's expansion.

The government has consistently emphasized reducing dependence on imported defence equipment while building a globally competitive domestic defence manufacturing ecosystem. Rising production levels are expected to support employment generation, technology development, and long-term growth opportunities for companies operating across the defence value chain.

The latest figures underscore the increasing scale of India's defence industrial base and reinforce the country's ambition to emerge as a major defence manufacturing hub in the coming years.