India Defence Manufacturing Reaches All-Time High of ₹1.51 Lakh Crore in FY 2024-25
The defence manufacturing industry in India has reached a record high, with production amounting to ₹1,50,590 crore during the financial year 2024-25 — an all-time high. This represents a staggering 18% increase over the previous year's ₹1.27 lakh crore production and an incredible 90% rise since 2019-20, when it was ₹79,071 crore.
Rajnath Singh, the Defence Minister, welcomed the accomplishment, attributing it to the collective efforts of the Department of Defence Production, Defence Public Sector Undertakings (DPSUs), other PSUs, and the private defence sector. He termed the steady growth upwards as a robust indicator of India's thriving and growing defence industrial base.
Public-Private Contribution Increasing in Unison
The information showcases that DPSUs and other public sector producers provided close to 77% of the overall production, with the private sector at 23%, from 21% during the last fiscal year. This increase indicates the increasing importance of private companies in India's defence industry.
Both public and private segments have achieved consistent year-on-year growth in FY 2024-25, with DPSUs growing by 16% while the private sector grew an impressive 28%. The performance has been attributed by experts to pro-reform policy decisions, increased ease of doing business, and the government's streamlined approach towards indigenisation in the last decade.
Aatmanirbhar Bharat Boosts Momentum
The record-breaking performance is a reflection of the government's drive for defence manufacturing self-sufficiency under the Aatmanirbhar Bharat initiative of Prime Minister Narendra Modi. The drive aims not just to supply India's defence needs but also to enhance export potential by curtailing imports and developing a local defence manufacturing ecosystem.
In fact, India's defence exports have also reached an all-time high, reaching ₹23,622 crore in FY 2024-25 — a 12% rise above last year's ₹21,083 crore.
Future Outlook
With ongoing policy support, increased private industry participation, and increasing export capabilities, the country's defence manufacturing industry is set to continue its growth trajectory in the coming years, solidifying India's position as a global defence manufacturing hub.
Read more:
PM Modi to Visit China for SCO Summit in First Trip Since Galwan Clash
Air Force and Navy to Place Major Orders for BrahMos Missiles
