K-9 Vajra assembly line at the L&T factory in Hazira, Gujarat. (Photo: Larsen & Turbo)
New Delhi: India’s defence production reached an unprecedented ₹150,590 crore in the financial year 2024-25, marking an 18 per cent increase from the previous fiscal’s ₹1.27 lakh crore and representing a remarkable 90 per cent jump since FY 2019-20.
The defence minister, Rajnath Singh, described the achievement as evidence of India’s strengthening defence industrial base, crediting the Department of Defence Production and various stakeholders, including defence public sector undertakings (DPSUs) and private manufacturers for the milestone.
The Department of Defence Production issued 1,762 export authorizations in 2024-25, compared to 1,507 in the preceding year, which reflects enhanced administrative efficiency and growing international demand for Indian defence equipment.
Private sector role expands
While DPSUs and other public sector units maintained their dominance with approximately 77 per cent of total production, the private sector’s contribution rose from 21 per cent in FY 2023-24 to 23 per cent in FY 2024-25. This shift indicates the private sector’s expanding role in India’s defence ecosystem.
Production growth was robust across both segments, with DPSUs registering 16 per cent growth while private companies achieved a substantial 28 per cent increase. This performance reflects the impact of policy reforms and improved ease of doing business over the past decade.
The growth trajectory aligns with the country’s Atmanirbhar Bharat (self-reliant India), which is aimed at reducing import dependency and building a defence industrial complex capable of serving both domestic requirements and international markets.
Export momentum accelerates
Defence exports reached ₹23,622 crore in FY 2024-25, with the private sector contributing ₹15,233 crore and DPSUs adding ₹8,389 crore. This represented a 12.04 per cent increase over FY 2023-24’s export figure of ₹21,083 crore.
DPSUs demonstrated particularly strong export performance with a 42.85 per cent increase in their overseas sales during FY 2024-25, underscoring the improving competitiveness of public sector defence manufacturers.
The government has set ambitious targets for the sector, with Singh expressing confidence that defence exports will reach ₹50,000 crore by 2030. This would represent more than a doubling of current export levels within six years.
The production surge reflects India’s broader strategic shift from being primarily an importer of defence equipment to developing indigenous capabilities. This transformation has been driven by sustained policy support, increased private participation, and expanding export capabilities.
The defence sector’s performance assumes particular significance amid global supply chain uncertainties and India’s efforts to position itself as a reliable defence manufacturing hub. The country now exports defence equipment to approximately 70 nations, demonstrating the growing international acceptance of Indian defence products.
Looking ahead, India’s defence production sector appears positioned for continued acceleration, supported by favourable policies and increasing participation from both public and private entities. The sector’s consistent year-on-year growth suggests the sustainability of current momentum, even as challenges remain in scaling up production capabilities and maintaining quality standards for international markets.