India’s defence production has reached a record ₹1.7 lakh crore in the financial year 2025–26, marking a significant milestone in the country’s drive towards self-reliance in the defence sector. The achievement reflects sustained growth in indigenous manufacturing, supported by increased participation from both public sector enterprises and private industry.
According to the Ministry of Defence, the rise in domestic production has been driven by policies promoting local manufacturing under the ‘Atmanirbhar Bharat’ initiative.
Indigenous production now spans fighter aircraft components, warships, artillery systems, missiles, armoured vehicles, electronic warfare equipment and advanced defence technologies. The government has also expanded the list of defence items reserved for domestic procurement, reducing dependence on imports.
Officials said the growth has strengthened India’s defence industrial base while creating employment opportunities and encouraging investment in research, innovation and advanced manufacturing. Defence exports have also witnessed steady growth in recent years, with Indian-made military equipment being supplied to an increasing number of countries.
The government aims to further increase domestic production by encouraging collaboration between defence public sector undertakings, private companies, startups and MSMEs. Industry experts believe continued investment in technology, innovation and exports will be crucial to achieving India’s long-term objective of becoming a global defence manufacturing hub.
The latest milestone underscores India’s broader strategy of strengthening national security through indigenous capability while positioning the country as a competitive player in the global defence industry.
