India's defense production hits record high of over ₹1.5L crore
What's the story
India's annual defense production has hit a record high of ₹1,50,590 crore in the 2024-25 fiscal. The figure marks an 18% increase from the previous year's total of ₹1.27 lakh crore and a whopping 90% jump since 2019-20 when it was ₹79,071 crore. Defense Minister Rajnath Singh announced the milestone today, attributing it to Prime Minister Narendra Modi's leadership and collective efforts across sectors.
Sectoral contribution
Contribution from public and private sectors
The public sector undertakings (PSUs) contributed around 77% of the total defense production output. Meanwhile, the private sector's share increased to 23%, up from last year's 21%. The public sector's production grew by 16% while that of the private sector jumped by an impressive 28%. This growth shows a rising capacity and participation from both sectors in India's defense manufacturing efforts.
Growth factors
Factors behind growth in defense production
The continuous growth in India's defense production is credited to long-term policy reforms, ease of doing business initiatives, and a strong push for indigenization over the last decade. These changes are part of the Aatmanirbhar Bharat initiative, which aims to reduce import dependence while creating a self-sufficient defense manufacturing ecosystem that caters to domestic needs and boosts export capabilities.
Export growth
Record high defense exports
India's defense exports have also hit a record high of ₹23,622 crore in the fiscal year 2024-25. The figure is an increase of ₹2,539 crore or 12.04% from the previous year's total of ₹21,083 crore. The rise in exports further cements India's position as a growing player in the global defense equipment market and its ability to meet international demands.