India’s defence production climbs to record Rs 1.5 lakh crore in 2024-25, exports also hit new high

India’s defence production has reached an unprecedented ₹1,50,590 crore in the 2024-25 financial year. Announcing the milestone on Saturday, Defence Minister Rajnath Singh said it represented “a robust 18% growth over the previous fiscal’s output of ₹1.27 lakh crore, and a staggering 90% increase since 2019-20, when the figure was ₹79,071 crore.”

In a post on X, Singh said, “Under the leadership of Prime Minister Shri @narendramodi, India’s defence production has hit a record high! The annual defence production has soared to an all-time high figure of ₹1,50,590 crore in the financial year 2024-25.” He credited the achievement to the “collective efforts” of the Department of Defence Production, defence public sector units (DPSUs), public sector manufacturers, and the private industry, calling it “a clear indicator of India’s strengthening defence industrial base.”



Defence Research and Development Organisation (DRDO) Chairman Dr. Samir V Kamat expressed pride in the sector's growth. Speaking to ANI, Dr. Kamat said, "It's indeed a proud moment for all of us. It's a reflection of the strength of our R&D and production in the defence domain. I'm sure going ahead, this number will keep increasing."

Dr. Kamat attributed the success to the government's Atmanirbhar Bharat and Make in India initiatives, which began in 2014. He noted the industry's confidence in producing systems within the country, knowing the ministry will acquire them for service.

Public sector dominates but private share rises

According to official data, DPSUs and other public sector undertakings contributed roughly 77% of the total output. The private sector accounted for 23%, up from 21% last year. Production rose 16% in the public sector and 28% in the private sector during the year, reflecting increasing capacity and involvement from both sides.

Policies and indigenisation drive growth

Officials attribute the steady rise in output to long-term policy reforms, measures to improve ease of doing business, and a determined push for indigenisation over the past decade. These changes have come under the Aatmanirbhar Bharat initiative, aimed at reducing reliance on imports while creating a defence manufacturing ecosystem that meets domestic needs and boosts export capacity.

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Defence exports reach new peak

Defence exports have also hit a record high of ₹23,622 crore in 2024-25. This is an increase of ₹2,539 crore, or 12.04%, compared with ₹21,083 crore in the previous year. The growth in exports is seen as further evidence of India’s rising status as a producer of defence equipment for global markets.

With public and private manufacturers continuing to expand, supported by government policies and growing foreign demand, officials believe India’s defence sector is on course for further acceleration in the years ahead.

Defence Public Sector Undertakings (DPSUs) and other PSUs accounted for approximately 77% of total production, while the private sector contributed 23%. The private sector's share increased from 21% in FY 2023-24, showing its growing role in the defence sector.

Both public and private sectors have shown consistent growth due to policy reforms and a focus on local production. The overall production of DPSUs and the private sector increased by 16% and 28% respectively in FY 2024-25.

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