India's domestic defence production touched a record ₹1.78 lakh crore in FY2025–26, according to figures released by the Ministry of Defence, marking a 15.6% jump over the ₹1.54 lakh crore recorded the previous year. The numbers set off a rally of interest in listed defence manufacturers on Tuesday, with shares of Hindustan Aeronautics, Bharat Electronics, Mazagon Dock Shipbuilders, Bharat Dynamics, Cochin Shipyard, Garden Reach Shipbuilders & Engineers, and BEML all coming into sharp focus.
The growth isn't a one-year blip. Production has more than doubled over five years, up from ₹84,643 crore in FY2020–21 — a rise of roughly 110%. Stretch the comparison back further and the shift becomes even more striking: output has climbed nearly fourfold since FY2013–14, when the figure stood at ₹43,746 crore.
Exports Are Growing Even Faster Than Production
If domestic output tells one story, exports tell a more dramatic one. The government reported a 56-times increase in defence exports over twelve years — from ₹686 crore in FY2013–14 to ₹38,424 crore in FY2025–26, a rise of more than 5,500%. Indian-made defence equipment is now reaching upward of 80 countries.
On the production side, the split leans more heavily toward the public sector: 76% of output came from public-sector defence firms in FY2025–26, with the remaining 24% from private industry — a balance the government has said it wants to shift further as private manufacturers scale up under the Atmanirbhar Bharat push for self-reliance.
Government target for 2029: ₹3 lakh crore in annual defence production, and ₹50,000 crore in exports.
Defence Minister Rajnath Singh welcomed the figures, crediting the pace of growth to the government's continued focus on building a stronger indigenous manufacturing base and reducing reliance on imported defence equipment.
Why It Matters for the Sector
For an industry that spent decades reliant on imports, a near-fourfold rise in production and a 56-fold jump in exports over roughly a decade marks a genuine structural shift — not just a good quarter. Whether the sector can hit the government's 2029 targets will depend on how quickly private manufacturers can scale alongside the public-sector giants that still dominate output today.
Compiled from Ministry of Defence data, published August 17, 2026.