At a time when global uncertainties and conflicts are reshaping economies, India’s defence manufacturing sector has achieved an unprecedented milestone. Defence Minister Rajnath Singh announced on Saturday that the country’s annual defence production touched a record high of ₹1,50,590 crore in the financial year 2024–25.
This figure represents an 18% increase over last year’s output and an impressive 90% growth compared to 2019–20, when production stood at ₹79,071 crore.
In a post on X (formerly Twitter), Singh wrote, “I commend the collective efforts of the Department of Defence Production and all stakeholders, i.e., DPSUs, public sector manufacturers, and the private industry, in achieving this landmark. This upward trajectory is a clear indicator of India’s strengthening defence industrial base.”
I commend the collective efforts of the Department of DefenceProduction and all stakeholders i.e., DPSUs, public sector manufacturers, and the private industry in achieving this landmark. This upward trajectory is a clear indicator of India's strengthening defence industrial…
— Rajnath Singh (@rajnathsingh) August 9, 2025
Public Sector Leads, Private Role Expands
According to official data, Defence Public Sector Undertakings (DPSUs) and other PSUs produced around 77% of the total output, while the private sector contributed 23%. The latter’s share has grown by two percentage points, underlining its expanding role in India’s defence ecosystem.
In FY 2024–25, DPSU production rose by 16%, and the private sector’s output surged by 28%, reflecting robust growth across the industry.
Reforms and Self-Reliance Drive Growth
The Ministry of Defence credited the record performance to major policy reforms, improvements in the ease of doing business, and a strong focus on indigenisation over the past decade.
These efforts align with Prime Minister Narendra Modi’s Aatmanirbhar Bharat vision, which aims to reduce dependence on imports and build a self-sustaining defence industrial base capable of meeting domestic requirements while boosting export potential.
