India's Defence Production Hits Record ₹1.78 Lakh Crore in FY26

India's defence production reached an all-time high of ₹1.78 lakh crore in financial year 2025-26, marking a 15.6% increase from ₹1.54 lakh crore in the previous fiscal year. Over five years, output has more than doubled, rising from ₹84,643 crore in FY2020-21—a 110% jump.

Defence Minister Rajnath Singh attributed the milestone to Prime Minister Narendra Modi's leadership and the government's push for indigenisation. Defence Public Sector Undertakings accounted for 76% of production, while the private sector contributed 24%, up from 22% in FY2024-25, with absolute output reaching nearly ₹42,000 crore.

India's defence exports also hit a record ₹38,424 crore in FY26, reflecting the sector's expanding domestic and international footprint.