India’s Defence Production Hits $18.18 Billion, State Entities Account for Nearly Three-Fourth Production

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Defence Exports Surge to $805 Million (₹6,695 Crore), Reflecting Growing Global Confidence in Indigenous Systems.

IAF's HAL built LCA Tejas Fighter Jet.

IAF’s HAL built LCA Tejas Fighter Jet.

New Delhi, November 10, 2025 – India has reached a significant milestone in its defence manufacturing sector, with total defence production for the year 2024-2025 reaching ₹1.51 lakh crore ($18.18 billion). Notably, Defence Public Sector Undertakings (DPSUs) contributed a substantial 71.6% to this total, highlighting the vital role of public sector entities in India’s push towards self-reliance in defence. Additionally, the country’s defence exports have soared to ₹6,695 crore ($805 million), reinforcing the growing global confidence in India’s indigenous defence systems.

The announcement was made at the DPSU Bhawan, a newly inaugurated state-of-the-art facility in Naoroji Nagar, New Delhi, during a comprehensive review meeting chaired by Defence Minister Rajnath Singh. The event, which marked a key milestone in India’s journey towards defence self-sufficiency, included the felicitation of four Miniratna (Category-I) DPSUs, reflecting the increasing autonomy and efficiency of these organisations.

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Miniratna Status: A Leap Towards Autonomy and Growth

At the meeting, Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVNL), India Optel Limited (IOL), and Hindustan Shipyard Limited (HSL) were granted Miniratna (Category-I) status, a recognition of their growing efficiency and contribution to the defence sector. Defence Minister Rajnath Singh commended these DPSUs for their dedication to advancing India’s self-reliance in defence manufacturing and their commitment to building indigenous defence capabilities.

“The transformation of the Ordnance Factory Board into seven independent DPSUs in 2021 has fostered greater autonomy, innovation, and competitiveness,” Rajnath Singh remarked. He also emphasized that this newly awarded Miniratna status would empower these organisations to expand capacity, modernise, and explore new collaborations, including potential joint ventures with both public and private sector partners.

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Defence Minister Rajnath Singh also inaugurated DPSU Bhawan in New Delhi.

Defence Minister Rajnath Singh also inaugurated DPSU Bhawan in New Delhi.

India’s Growing Global Defence Footprint

The review highlighted India’s growing presence on the global defence stage. With defence exports reaching an impressive $805 million (₹6,695 crore) in 2024-25, it is evident that Made in India products are gaining respect and acceptance internationally. “This underscores the increasing global confidence in India’s indigenous systems and technologies,” said the Defence Minister, underscoring that the country is now a credible player in the global defence market.

The achievement is part of India’s larger push for indigenous design, development, and production (IDDM), aimed at reducing reliance on foreign imports and positioning the country as a global defence manufacturing hub.

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Focused Efforts on Indigenisation and R&D

In his address, Rajnath Singh urged all DPSUs to focus on rapid indigenisation of critical technologies and enhance their R&D capabilities. He outlined the need for a holistic approach to research and development, stressing that each DPSU must define clear indigenisation and R&D roadmaps with measurable milestones, which will be reviewed in subsequent meetings. He assured the industry that the government would provide timely intervention and support wherever required to accelerate these initiatives.

The meeting also saw the signing of three key Memorandums of Understanding (MoUs) between DPSUs, underscoring the spirit of collaboration and self-reliance. Notably, Hindustan Aeronautics Limited (HAL) and Bharat Dynamics Limited (BDL) signed MoUs with Yantra India Limited (YIL) to support its modernisation efforts and establish a 10,000-ton Forging Press facility, aimed at reducing India’s dependence on imports for key materials used in defence and aerospace sectors. The third MoU, signed for the creation of a Metal Bank at MIDHANI, will ensure a steady supply of critical raw materials for defence projects of national importance.

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India's Pinaka Multi Barrel Rocket Launcher System.

India’s Pinaka Multi Barrel Rocket Launcher System.

Sustainable and Green Defence Manufacturing

Rajnath Singh also launched the SWAYAM initiative (Sustainable and Green Defence Manufacturing), which aims to make defence manufacturing more sustainable by improving energy efficiency, increasing the use of renewable energy, and reducing carbon emissions across the sector. Anchored in the Comprehensive Energy Efficiency Action Plan (CEEAP) 2023, SWAYAM includes a series of measures such as the SWARNA Dashboard and the DPSU Energy Efficiency Index, designed to track progress and promote sustainability in defence production.

The Defence Minister also felicitated India Optel Limited (IOL) and Bharat Electronics Limited (BEL) for their achievements in adopting green energy. IOL has fully switched to renewable energy since September 2025, resulting in the reduction of 8,669 tonnes of CO₂ emissions and saving ₹26.36 lakh ($31,800) in the first quarter of FY 2025-26. BEL, a Navratna DPSU, became the first entity in India to achieve the RE100 milestone in January 2025, achieving zero Scope-2 emissions, marking a significant step towards its Net Zero goals.

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A Modern Facility for Collaboration and Innovation

The DPSU Bhawan, inaugurated during the meeting, serves as a state-of-the-art facility designed to foster collaboration and innovation within the defence sector. The building, developed under the leadership of Defence Minister Rajnath Singh and Junior Defence Minister Sanjay Seth, will serve as a hub for all 16 DPSUs, providing a common platform to drive synergies, share resources, and showcase India’s growing defence manufacturing capabilities.

Equipped with modern conference rooms, simulation facilities, and an exhibition area, the Bhawan is set to become a key space for furthering India’s defence manufacturing ecosystem and establishing stronger ties with both domestic and international stakeholders.

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India’s Vision for the Future

In his concluding remarks, Rajnath Singh reiterated India’s vision of becoming a global manufacturing hub for defence production. “Let us resolve not only to make India self-reliant in defence production but also to establish it as a global leader in defence manufacturing,” he said.

The newly inaugurated DPSU Bhawan and the steps taken during the review meeting are significant moves in this direction, creating a more efficient, autonomous, and innovative defence manufacturing ecosystem that will contribute not only to India’s security but also to its economic growth. The emphasis on sustainability, R&D, and global partnerships demonstrates the government’s long-term commitment to making India a key player in the global defence industry.

Junior Defence Minister Sanjay Seth, along with senior officials from the Ministry of Defence, DPSU heads, and other stakeholders, were also present at the event, which highlighted India’s continued progress in enhancing its self-reliance in defence manufacturing.

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