Indian Economy News

Defence production soars to an all-time high of Rs. 1,51,000 crore (US$ 17.25 billion) in FY25

India’s annual defence production reached a record Rs. 1,50,590 crore (US$ 17.20 billion) in FY25, marking an 18% increase over FY24’s Rs. 1,27,000 crore (US$ 14.51 billion) and a 90% surge compared with FY20’s Rs. 79,071 crore (US$ 9.03 billion). Union Minister of Defence Mr. Rajnath Singh, praised the coordinated efforts of the Department of Defence Production, Defence Public Sector Undertakings (DPSUs), public sector manufacturers, and private industry in achieving this milestone, calling it a sign of India’s growing defence industrial base. DPSUs and other PSUs contributed approximately 77% of the output. In comparison, the private sector’s share rose to 23% in FY25 from 21% in FY24, reflecting its expanding role in the sector.

Public and private industry segments posted YoY growth of 16% and 28%, respectively, supported by policy reforms, improved ease of doing business, and a strong focus on indigenisation. The achievement aligns with the Government’s Aatmanirbhar Bharat initiative, aimed at reducing import dependence and enhancing export capacity. Defence exports also reached a record Rs. 23,622 crore (US$ 2.70 billion) in FY25, up 12.04% from Rs. 21,083 crore (US$ 2.41 billion) in FY24. With sustained reforms, growing private sector participation, and rising export capabilities, the defence manufacturing sector is expected to maintain its upward momentum in the coming years.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.