India Hits Highest-Ever Defence Production—What It Means

India has achieved a historic milestone in its journey toward defence self-reliance. In the financial year 2024‑25, the country recorded its highest-ever defence production at ₹1.54 lakh crore, alongside defence exports that soared to ₹23,622 crore. This sharp rise highlights India’s shift from being a defence-importing country to an emerging defence manufacturing and exporting hub. For competitive exam aspirants, this development is a major current affairs highlight, encompassing themes of economics, national security, and industrial policy.

The Build-up to the Record: Policy and Reform

Reducing Import Dependency

Historically, India has been among the top importers of defence equipment. Overdependence on foreign suppliers not only strained the exchequer but also posed strategic vulnerabilities during conflicts and global supply disruptions.

Push for Indigenous Development

With the launch of Make in India and later Atmanirbhar Bharat, a series of reforms followed to boost the domestic defence sector. These included,

• Simplifying defence procurement policies
• Encouraging foreign direct investment (FDI) in defence
• Launching the Defence Acquisition Procedure (DAP) 2020
• Promoting the Indigenously Designed, Developed and Manufactured (IDDM) category in acquisitions
• Establishing two defence industrial corridors in Uttar Pradesh and Tamil Nadu

These reforms have encouraged private sector participation, boosted MSME involvement, and strengthened R&D partnerships.

FY 2024‑25: Key Production and Export Highlights

Defence Production Milestone

India’s indigenous defence production touched ₹1.54 lakh crore in 2024‑25 — a significant leap from ₹46,429 crore a decade ago. The production ecosystem now includes over 460 licensed companies, with many players from the private sector and MSME segments contributing to this growth.

Surge in Defence Exports

Defence exports witnessed a meteoric rise, climbing to ₹23,622 crore in FY 2024‑25. This marks a nearly 23-fold increase from 2014 levels, when exports were below ₹1,000 crore. India is now exporting items like artillery parts, coastal surveillance systems, light helicopters, and bulletproof gear to over 80 countries.

Budget Support and Long-Term Goals

Increased Budgetary Allocation

The central government has shown consistent commitment through a significant increase in the defence budget, which rose from ₹2.53 lakh crore in 2013‑14 to ₹6.81 lakh crore for 2025‑26. A major portion is now earmarked for capital expenditure and indigenously sourced equipment.

Vision 2029

The government has set ambitious targets to reach,

• ₹3 lakh crore in total defence production
• ₹50,000 crore in defence exports

by the year 2029. These goals align with India’s aspiration to become one of the top five defence producers globally.

Key Takeaways

• India’s defence production in 2024‑25: ₹1.54 lakh crore
• Defence exports in 2024‑25: ₹23,622 crore
• Defence budget 2025‑26: ₹6.81 lakh crore
• Defence production target by 2029: ₹3 lakh crore
• Export target by 2029: ₹50,000 crore
• Major reforms: DAP 2020, DPM 2025, Make in India, Atmanirbhar Bharat