India’s defence production soared to a record ₹1.51 lakh crore, marking a 90% rise since FY20

India’s defence sector has reached a new pinnacle, achieving an all-time high production value of ₹1,50,590 crore in FY 2024-25. This milestone signifies an 18% surge from the previous fiscal year’s ₹1.27 lakh crore, and an impressive 90% leap from FY 2019-20, when production stood at ₹79,071 crore.

Defence Minister Shri Rajnath Singh commended the collaborative efforts of the Department of Defence Production, Defence Public Sector Undertakings (DPSUs), public sector manufacturers, and private industries in reaching this significant milestone. He emphasized that this upward trend demonstrates the strengthening of India’s defence industrial base. DPSUs and other PSUs contributed approximately 77% of the total production, while the private sector accounted for 23%. The private sector’s share increased from 21% in FY 2023-24, highlighting its expanding role in the nation’s defence ecosystem. Both public and private sectors have shown consistent year-on-year growth. This is attributed to policy reforms, improved ease of doing business, and a strategic emphasis on indigenization over the past decade. The production of DPSUs and the private sector grew by 16% and 28% respectively in FY 2024-25.

This record-breaking achievement underscores the government’s drive for self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative, spearheaded by Prime Minister Shri Narendra Modi. The focus on reducing import reliance and establishing a robust defence industrial complex capable of meeting India’s needs and boosting export potential has yielded positive outcomes. Notably, defence exports also reached a record high of ₹23,622 crore in FY 2024-25, marking an increase of ₹2,539 crore, or 12.04%, compared to the ₹21,083 crore recorded in FY 2023-24. With ongoing policy support, increased private sector involvement, and expanding export capabilities, India’s defence production sector is primed for continued growth in the coming years.

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