India's defence production has reached an all-time high, exceeding ₹1.5 lakh crore in the financial year 2024-25, according to Defence Minister Rajnath Singh. This milestone signifies a significant leap in the country's defence capabilities and industrial strength.
The surge in defence production represents an 18% increase compared to the previous fiscal year's output of ₹1.2 lakh crore. Furthermore, there has been a remarkable 90% surge since 2019-20, when the production value was ₹79,071 crore. This substantial growth trajectory highlights the effectiveness of policy reforms, ease of doing business, and strategic focus on indigenization within the defence sector over the past decade.
The Ministry of Defence's Department of Defence Production and various stakeholders, including Defence Public Sector Undertakings (DPSUs), other public sector manufacturers, and private industries, have contributed to this achievement. Defence exports have also seen a boost, reaching ₹23,622 crore in 2024-25, further indicating the growing competitiveness of the Indian defence industry.
DPSUs and other public sector entities accounted for 77% of the total defence production, while the private sector contributed 23%. The increasing share of the private sector, up from 21% in 2023-24, demonstrates its expanding role in the country's defence ecosystem. Both public and private sectors have shown consistent year-on-year growth, driven by policies that promote domestic manufacturing and reduce import dependence.
The government is committed to promoting transparency and efficiency in the defence sector, as demonstrated by initiatives such as procurement through the Government e-Marketplace (GeM). The Defence Acquisition Council (DAC) has been actively approving procurement proposals for military goods, further enhancing the capabilities of the armed forces and coast guard. These include approvals for the procurement of electronic warfare suites, advanced land navigation systems, and other military hardware.
The emphasis on indigenization has yielded positive results, with a focus on building a robust defence industrial complex that caters to domestic needs. This approach has not only reduced reliance on imports but has also positioned India as a potential exporter of defence equipment and technologies. Furthermore, the government has been actively engaging in trade talks with various countries, including the United States, to explore opportunities for collaboration and exports in the defence sector.
In addition to increased production and exports, the Indian Air Force is also strengthening its capabilities through indigenous development. The design, development, and launch of the GSAT-7C satellite will enhance the Air Force's global operations and network-centric warfare capabilities.
