India’s Defence Production Hits Record ₹1.51 Lakh Crore in FY 2024–25, Marks 18% Growth

India’s annual defence production has reached an unprecedented ₹1,50,590 crore in FY 2024–25, marking an 18% rise over the previous year’s ₹1.27 lakh crore. This also represents a remarkable 90% growth since FY 2019–20, when the output stood at ₹79,071 crore.

Defence Minister Rajnath Singh praised the Department of Defence Production, Defence Public Sector Undertakings (DPSUs), public sector manufacturers, and the private industry for their role in achieving this milestone, calling it a clear sign of India’s strengthening defence industrial base.

Sector-Wise Contribution

• DPSUs & Public Sector Manufacturers: ~77% of total production
• Private Sector: 23% (up from 21% in FY 2023–24)

This growth reflects the private sector’s increasing role in the Indian defence ecosystem, with both segments achieving robust year-on-year expansion,

• DPSUs & PSUs: 16% growth in FY 2024–25
• Private Sector: 28% growth in FY 2024–25

Policy Reforms Driving Growth

India’s surge in defence manufacturing is the result of,

• Aatmanirbhar Bharat initiative to promote self-reliance
• Strategic push for indigenisation and reducing imports
• Ease of doing business reforms for defence firms
• Greater private sector participation in production and R&D

Defence Exports on the Rise

In addition to domestic growth, defence exports also touched a record ₹23,622 crore in FY 2024–25 — an increase of ₹2,539 crore (12.04%) over the previous year’s ₹21,083 crore.

Significance

This record-setting year signals India’s transformation from being a major arms importer to developing a robust domestic defence industry capable of meeting internal needs and creating competitive export opportunities.