India’s Defence Production Hits Record High of USD18 Bn in FY2025

India Our Bureau - : Aug 11, 2025 - : 9:12 pm

In a major milestone for India’s indigenous defence industry, the country’s annual defence production touched a record INR1.5 trillion (USD18 billion) in the financial year 2024-25 (FY25).

This represents an 18% jump from last year and a remarkable 90% increase over the FY20 figure, India’s Defence Minister Rajnath Singh has said. For comparison, India’s defence production stood at INR1.27 trillion (USD15.2 billion) in FY24, and INR791 billion (USD9.4 billion) in FY20.

“This upward trajectory is a clear indicator of India’s strengthening defence industrial base,” Singh said in a social media post, lauding the collective efforts of the Department of Defence Production, Defence PSUs, and the private sector.

The Defence Ministry credited the record growth to far-reaching policy reforms, enhanced ease of doing business, and a strategic push for indigenisation under the Government’s flagship Aatmanirbhar Bharat initiative.

Private Sector Makes Gains

While Defence Public Sector Undertakings (DPSUs) and other PSUs continued to lead production — accounting for 77% of the output — the private sector’s contribution increased to 23%, up from 21% the previous year.

Notably, private industry posted a 28% growth in output, outpacing the 16% rise in the public sector for FY25. The Ministry said this reflects the growing maturity of India’s private defence ecosystem and its ability to support both domestic procurement and exports.

Exports Surge to All-Time High

India’s defence exports also reached an all-time high, with INR23,622 crore (USD2.84 billion) worth of military equipment and services exported in FY25 — a 12% increase from INR21,083 crore (USD2.53 billion) in FY24.

The Ministry said that India is increasingly becoming a global defence supplier, especially in segments such as radar systems, naval platforms, ammunition, and spares. The export momentum is being driven by the growing international confidence in Indian-made defence systems, as well as sustained government support.

From Importer to Industrial Powerhouse

The milestone is significant in the context of India’s historical dependence on arms imports. Over the past decade, the country has shifted focus from being the world’s largest arms importer to becoming a producer and exporter — prioritising self-reliance, technology transfer, and domestic manufacturing capabilities.

“This record-setting achievement underscores the growing momentum of the Government’s push to self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative,” said the Defence Ministry in an official statement.

Showcasing Capabilities: Operation Sindoor

FY25 also saw India demonstrate its military capabilities during Operation Sindoor, a major counter-terror operation in Pahalgam, Jammu and Kashmir, following a terror attack in April.

According to Air Chief Marshal AP Singh, the Indian Air Force deployed the S-400 air defence system, successfully intercepting five Pakistani fighter jets and a large surveillance aircraft, showcasing India’s operational readiness and use of advanced indigenous platforms.

What Lies Ahead

Defence Minister Singh expressed confidence that India’s defence production sector is now on a path of sustained acceleration, driven by rising private sector participation, expanding export capabilities, and strategic investments in R&D, innovation, and global partnerships.

India is aiming not just to meet its own defence needs but to become a trusted global defence supplier, particularly to the Global South and strategic allies across Asia, Africa, and Latin America.

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