India's defence sector achieved a significant milestone in FY25, with production reaching ₹1.5 lakh crore. This marks an 18% increase from the previous year and a substantial 90% rise since FY20. The Defence Ministry attributes this growth to policy reforms, improved business conditions, and a focus on indigenisation over the past decade.
The Defence Public Sector Undertakings (DPSUs) and other PSUs were responsible for about 77% of the total production in FY25. Meanwhile, the private sector's contribution rose to 23%, up from 21% in FY24. This shift highlights the increasing role of private enterprises in India's defence manufacturing landscape.

Focus on Self-Reliance
Union Defence Minister Rajnath Singh emphasised the collective efforts of various stakeholders, including the Department of Defence Production (DPP), DPSUs, and private industry. "This upward trajectory is a clear indicator of India's strengthening defence industrial base," Singh stated on social media.
India's defence exports also reached new heights in FY25, totalling ₹23,622 crore. This represents an increase of approximately ₹2,539 crore or 12% from ₹21,083 crore in FY24. The ministry highlighted this achievement as evidence of India's growing self-reliance under the Aatmanirbhar Bharat initiative.
Operation Sindoor: A Showcase of Strength
In April this year, India demonstrated its defence capabilities during Operation Sindoor, responding to a terror attack in Pahalgam. The Indian Air Force (IAF) played a crucial role, with Chief Air Chief Marshal AP Singh revealing that India's S-400 air defence system successfully intercepted five Pakistani fighter jets and a large surveillance aircraft during the operation.
The overall production by DPSUs increased by 16%, while the private sector saw a remarkable 28% growth in FY25. These figures reflect the combined impact of strategic initiatives aimed at boosting domestic manufacturing capabilities and reducing reliance on foreign imports.
The Defence Ministry credits both public and private sectors for their contributions to this record-breaking year. The ministry noted that these achievements underscore the momentum gained through government efforts to enhance self-reliance in defence manufacturing.
This year's accomplishments highlight India's commitment to building a robust defence industrial base. By focusing on indigenisation and fostering collaboration between public and private entities, India is positioning itself as a key player in global defence markets.
More From GoodReturns

New PAN Card Rules From April 1, 2026: How To Apply For New PAN Card Via Protean, E-Filing Portal?

LPG Gas Cylinder Prices Hiked Again From April 1; 19 KG LPG Gets Costlier By Rs 218; 14.2 KG LPG Unchanged

Gold Rate in India Rises Over Rs 37,000/24K in Three Days; Will Jump in Gold Price Today Continue on 31 March?

Gas Cylinder Booking Rules: 5 Things To Know For Your 14.2Kg, 19KG, 5KG, 10KG LPG Booking In April 2026

Gold Rate Today Continues Rally, 24K Jumps Over Rs 35000 in 2 Days; 22K & 18K Gold, Silver Prices in Delhi

Bank Holiday In April 2026: Banks To Be Closed For 14 Days; Good Friday, Baisakhi To Akshaya Tritiya

Gold Price Today Declines After 3-Day Surge; Check Latest 22K, 24K, 18K Gold & Silver Rates in Delhi on 2April

Gold Price Today, April 3: 22K, 24K Rates Jump Across Tanishq, Malabar, Kalyan & Joyalukkas & IBJA

5 New Shares On One Soon: Anil Agarwal's Vedanta Demerger To Take Place in April, Says Report

Fresh Drop in Gold Rate Today; Silver Stable: Latest 22K, 24K, 18K Gold & Silver Prices in Delhi on 30 March

Govt Approves PDS Kerosene Distribution in 21 States for 60 Days, Sets 5,000 L Storage Limit Amid LPG Crisis



Click it and Unblock the Notifications