India's Defence Manufacturing Reaches Record ₹1.51 Lakh Crore in FY 2024-25
India's defense manufacturing output has reached a record high, totaling ₹1,50,590 crore for the fiscal year 2024-25. This marks an 18% increase compared to the previous year's ₹1.27 lakh crore and represents a remarkable 90% rise since fiscal year 2019-20.
Defense Minister Rajnath Singh praised this achievement as a strong indication of the nation's strengthening defense industrial base. He attributed the success to the efforts of Defense Public Sector Undertakings (DPSUs), other public sector units, and the private industry.
DPSUs and other public sector units accounted for approximately 77% of the total production, while the private sector's contribution increased from 21% in fiscal year 2023-24 to 23% in the current year, highlighting its expanding role in the defense sector. Production growth in the public sector was recorded at 16%, whereas the private sector showed a more significant 28% increase.
The growth is credited to policy reforms, enhanced ease of doing business, and a longstanding focus on indigenization. The government's Aatmanirbhar Bharat initiative has helped reduce reliance on imports while boosting exports, which reached a record ₹23,622 crore in fiscal year 2024-25, marking a 12% rise from the previous year.
Officials anticipate that with continued policy support, increasing export potential, and greater private sector involvement, India's defense production is poised for further growth in the coming years.
