INS Nistar of Indian Navy.
India’s Defence Production Hits Record $16.56 Billion in FY 2024-25: NEW DELHI – India’s annual defence production has reached a new record high of ₹1,50,590 crore (approximately $16.56 billion) for the financial year (FY) 2024-25. This significant milestone was announced by the government, underscoring a period of robust growth and a concerted push towards self-reliance in the defence manufacturing sector.
The figure represents an impressive 18% growth over the previous fiscal year’s output of ₹1.27 lakh crore (approximately $13.97 billion). The growth trajectory is even more striking when viewed over a five-year period, showing a staggering 90% increase since FY 2019-20, when production stood at ₹79,071 crore (approximately $8.70 billion).
The Defence Minister Rajnath Singh, lauded the achievement, attributing the success to the collective efforts of the Department of Defence Production and all key stakeholders. He stated that the consistent upward trend is a “clear indicator of India’s strengthening defence industrial base.”
An analysis of the production figures reveals a continued dominance by Defence Public Sector Undertakings (DPSUs) and other Public Sector Undertakings (PSUs), which accounted for approximately 77% of the total production.
READ: AeroVironment and SNC Partner to Develop ‘Golden Dome’ Defense System
However, the private sector’s contribution is also growing, increasing its share from 21% in FY 2023-24 to 23% in FY 2024-25. This reflects the private industry’s increasingly vital role in the country’s defence ecosystem. Both public and private segments of the industry have demonstrated consistent year-on-year growth, with production increasing by 16% and 28% respectively in FY 2024-25.
The government attributes this success to a combination of far-reaching policy reforms, enhanced ease of doing business, and a strategic focus on indigenisation over the last decade. This record-setting achievement reinforces the momentum of the Government’s ‘Aatmanirbhar Bharat’ (Self-Reliant India) initiative, spearheaded by Prime Minister Narendra Modi, which aims to reduce import dependency and build a robust defence industrial complex.
READ: Germany’s Rheinmetall AG Sees Record Growth in Defence Business Amid Geopolitical Shifts
The positive trends in defence production are mirrored by the country’s export performance. Defence exports surged to a record high of ₹23,622 crore (approximately $2.60 billion) in FY 2024-25, marking an increase of ₹2,539 crore (approximately $0.28 billion) or 12.04% over the FY 2023-24 figures of ₹21,083 crore (approximately $2.32 billion).
With sustained policy support and a growing export potential, India’s defence production sector appears poised for continued acceleration in the coming years.
READ: India-Israel Reaffirm Strategic Defence Cooperation in High-Level Bilateral Meeting