India Defence Production Hits Record Rs 1.78 Lakh Crore

India’s defence exports reached an all-time high of Rs 38,424 crore in FY 2025-26, compared with Rs 686 crore in 2013-14, representing an increase of more than 5,500% over the period.

India's domestic defence production reached a record Rs 1.78 lakh crore in the 2025-26 financial year, nearly four times the Rs 46,000 crore recorded in 2014, as the country expands local manufacturing and invests more heavily in advanced military technologies.

Defence Minister Rajnath Singh shared the figures during an Akashvani address to soldiers on the eve of the 80th Independence Day, saying the government was giving high priority to modernising the Armed Forces through a defence sector built around self-reliance and preparations for future security challenges. He credited programmes such as Aatmanirbhar Bharat and Make in India with changing the defence manufacturing landscape over the past 12 years, allowing India to meet a larger share of its military requirements domestically while developing a growing export industry.

Defence exports climb to Rs 38,424 crore

India's defence exports reached an all-time high of Rs 38,424 crore in FY 2025-26, compared with Rs 686 crore in 2013-14, representing an increase of more than 5,500% over the period. Singh said 145 Indian defence exporters are now supplying products to more than 80 countries, expressing confidence that India can reach its defence export target of Rs 50,000 crore by 2029.

Defence Public Sector Undertakings and other public entities accounted for around 76% of domestic defence production during 2025-26, while private companies contributed 24%. The private-sector share increased from 22% in the previous financial year, which Singh described as a sign of improving conditions for businesses operating in defence manufacturing.

India's overall defence budget has also expanded from Rs 2.53 lakh crore in 2013-14 to Rs 7.85 lakh crore for 2026-27, while capital expenditure has risen from Rs 94,588 crore to Rs 2.19 lakh crore. Spending on defence research and development stands at Rs 29,100 crore for 2026-27, around 90% higher than the Rs 15,283 crore allocated in 2014-15.

New weapons strengthen future warfare capabilities

The Defence Acquisition Council has granted Acceptance of Necessity for projects worth more than Rs 8.75 lakh crore over the past year, forming part of a wider modernisation programme involving indigenous ships, aircraft and advanced weapons.

Singh highlighted several recent developments led by the Defence Research and Development Organisation and the Armed Forces, including testing of the Tactical Advanced Range Augmentation system designed to turn conventional weapons into precision-guided munitions.

He also cited tests involving the Advanced Agni Missile equipped with Multiple Independently Targetable Re-entry Vehicle technology, the Long-Range Land Attack Cruise Missile, RudraM-II air-to-surface missile, Naval Anti-Ship Missile-SR and Pinaka Long-Range Guided Rocket.

A full-scale actively cooled scramjet combustor was successfully tested for more than 1,200 seconds, a development Singh said strengthened India's progress towards hypersonic missile technology. The first successful test of the indigenous Kusha long-range surface-to-air missile was also highlighted as an important addition to air defence capabilities.

Soldier welfare and women remain key priorities

Singh said modernisation was being accompanied by increased support for serving personnel, veterans and their families, pointing to a 300% increase in the Ex-Servicemen Contributory Health Scheme budget over five years.

Financial assistance under the Armed Forces Flag Day Fund has also increased, with the Penury Grant doubling from Rs 4,000 to Rs 8,000, the Education Grant rising from Rs 1,000 to Rs 2,000 and the Marriage Grant increasing from Rs 50,000 to Rs 1 lakh.

Women are taking on a larger role across the Armed Forces, with the first batch of female cadets trained at the National Defence Academy commissioned as officers into the three Services. Singh also highlighted Samudra Pradakshina, the first tri-service all-women circumnavigation sailing expedition aboard Indian Army Sailing Vessel Triveni.

Paying tribute to India's freedom fighters and military personnel, Singh said soldiers continue to protect the country's sovereignty, unity and integrity while also serving as first responders during natural disasters.

He called on citizens to mark Independence Day and the 150th anniversary of the national song "Vande Mataram" with a renewed commitment to national service and India's Viksit Bharat vision.