India’s defence production has achieved a historic milestone in the Financial Year (FY) 2024-25, soaring to an unprecedented level of ₹1,50,590 crore, marking the highest annual figure ever recorded in the country's defence manufacturing sector.

This represents a robust 18% year-on-year growth over the previous fiscal’s output of ₹1.27 lakh crore. Compared to FY 2019-20, when the production value stood at ₹79,071 crore, the latest achievement reflects a remarkable 90% growth within just five years.

This unprecedented surge in production is being viewed by policymakers and defence strategists as a clear sign of India’s strengthening defence industrial base, an outcome of sustained policy reforms, strategic vision, and collaborative industry efforts.

Rajnath Singh commended the Department of Defence Production, Defence Public Sector Undertakings (DPSUs), other public sector manufacturers, and the private industry for their collective role in achieving this significant benchmark.

A detailed breakdown of the figures shows that DPSUs and other public sector units accounted for nearly 77% of the total production, while the private sector contributed a growing share of 23%, up from 21% in FY 2023-24, underscoring the increasing participation of private enterprises in India’s defence ecosystem.

The growth trajectory of both segments has been steady and impressive, with public sector production up by 16% and private sector output jumping by 28% in FY 2024-25 compared to the previous fiscal year.

Experts attribute this sustained rise to a decade-long focus on far-reaching policy reforms, improved ease of doing business, and an unwavering push for indigenisation. Over the past ten years, the Government of India has consistently prioritised self-reliance in defence manufacturing through the Atmanirbhar Bharat initiative spearheaded by Prime Minister Narendra Modi.

Key measures like liberalised foreign direct investment (FDI) policies, streamlined procurement procedures, and strategic Import Embargo Lists for defence items have significantly boosted domestic production capacity, reduced import dependency, and nurtured a robust indigenous industrial ecosystem.

Here is a comparative year-wise overview and growth analysis of India's defence production and exports from around 2014-15 to 2024-25:

Fiscal YearDefence Production (₹ crore)% Growth vs Previous YearDefence Exports (₹ crore)% Growth vs Previous Year
2014-1546,429–686–
2019-2079,071–––
2023-241,27,434Approx. 18% from 2022-2321,08332.5%
2024-251,50,59018%23,62212.04%

Key insights:

India’s defence production has grown by approximately 174% since 2014-15, from ₹46,429 crore to ₹1.50 lakh crore in 2024-25.

Exports have surged from negligible levels a decade ago to ₹23,622 crore in 2024-25, expanding roughly 34 times since 2013-14.

Notable annual export growth includes a 32.5% increase in 2023-24 and 12% growth in 2024-25.

The private sector’s share in defence production rose to about 23% in 2024-25 from around 21% the previous year, indicating growing private industry participation.

Defence exports span over 100 countries with major buyers including the USA, France, and Armenia.

India is targeting defence production of ₹3 lakh crore and exports of ₹50,000 crore by 2029.

This progress is driven by key initiatives including the Make in India campaign, Atmanirbhar Bharat push for indigenisation, policy reforms such as FDI liberalisation, Defence Industrial Corridors, and schemes like Innovations for Defence Excellence (iDEX) supporting MSMEs and start-ups.

A parallel success story has unfolded in the area of defence exports, which have hit a record ₹23,622 crore in FY 2024-25—an increase of ₹2,539 crore or 12.04% over FY 2023-24’s export figure of ₹21,083 crore.

This sustained export growth has not only diversified India’s defence trade portfolio but also enhanced its position in the global arms market. The expanding export capability stems from a combination of factors, including wider international collaborations, aggressive market access strategies, and enhanced production quality that meets global standards.

Taken together, these figures are seen as evidence of the growing maturity of India’s defence manufacturing sector, which is transitioning from being import-dependent to becoming a self-sufficient and globally competitive player.

The government’s continued support in the form of targeted investments, defence R&D encouragement, and greater integration of MSMEs in supply chains is expected to accelerate this growth further.

Moving forward, industry experts believe the current momentum can be leveraged to achieve both domestic defence security and a larger share of the international market, ultimately strengthening India’s strategic autonomy and economic resilience.

PIB Report