India’s defence manufacturing sector has achieved a historic milestone, reaching an output of ₹1,50,590 crore for the fiscal year 2024-25. This figure represents an 18% increase from the previous year’s output of ₹1.27 lakh crore and an impressive 90% growth since the fiscal year 2019-20.
Defence Minister Rajnath Singh praised this achievement as a clear demonstration of India’s advancing defence industrial base. He acknowledged the significant contributions made by Defence Public Sector Undertakings (DPSUs), other public sector units (PSUs), and private industry, which collectively drove this growth.
DPSUs and other PSUs accounted for approximately 77% of total defence production, while the private sector made notable strides, increasing its contribution from 21% in the previous fiscal year to 23% this year. This shift underscores the growing role of private firms within the defence manufacturing landscape. The public sector saw a production growth rate of 16%, whereas the private sector outpaced this with a substantial 28% increase in output.
Officials attribute this remarkable growth primarily to comprehensive policy reforms, enhancements in the ease of doing business, and a sustained commitment to indigenisation over the past decade. The government’s thrust on the Aatmanirbhar Bharat initiative has significantly curtailed reliance on imports while simultaneously boosting exports, which surged to a record ₹23,622 crore in FY 2024-25—up 12% compared to the previous fiscal year.
Looking ahead, officials express confidence that with ongoing policy support, increasing export opportunities, and deeper engagement from the private sector, India’s defence production capabilities are poised for continued acceleration in the years to come.
