India’s Defence Production Reaches Historic High of ₹1.5 Lakh Crore in FY 2024–25
- MGMMTeam
- Aug 11
- 3 min read
In a remarkable milestone, India’s defence production touched an all-time high of ₹1,50,590 crore during the financial year 2024–25. This achievement marks an 18 percent increase compared to the previous fiscal year, 2023–24, when production stood at ₹1.27 lakh crore. The surge reflects India’s unwavering commitment toward self-reliance in defence manufacturing and highlights the steady transformation of the country’s defence industrial ecosystem.
Public and Private Sector Synergy Drives Growth
The phenomenal growth in defence production is a result of close collaboration between the Department of Defence Production, Defence Public Sector Undertakings (DPSUs), other public sector units, and the private sector. Together, these stakeholders have created a resilient and expansive defence manufacturing base that supports India’s strategic ambitions. DPSUs and public sector units contributed around 77 percent of total defence production, while the private sector’s share rose to 23 percent, up from 21 percent the previous year.
This dynamic balance showcases the rising prominence of private enterprises in defence manufacturing. The private sector’s production jumped by an impressive 28 percent year-on-year, outpacing the 16 percent growth reported by DPSUs. This shift reflects the positive impact of government reforms aimed at liberalising foreign direct investment norms, streamlining approvals, and encouraging “Make in India” initiatives that prioritize indigenous manufacturing capabilities.
Export Growth Highlights India’s Emerging Global Role
India’s expanding defence manufacturing capacity has translated into increased exports, further positioning the country as a significant player in the global defence market. Defence exports reached ₹23,622 crore in FY 2024–25, marking a 12 percent growth over the previous year’s ₹21,083 crore. This steady rise underscores India’s growing reputation as a reliable supplier of defence equipment to international partners across Asia, Africa, and Latin America.
The export surge complements India’s domestic production achievements and aligns with the government’s vision to reduce reliance on imports, bolster strategic autonomy, and strengthen diplomatic ties through defence collaboration.
A Decade of Steady and Strategic Progress
India’s journey in defence manufacturing over the past decade has been nothing short of transformative. From a modest production value of ₹46,429 crore in FY 2014–15, the sector has grown nearly threefold in ten years, reaching ₹1.5 lakh crore in FY 2024–25. This impressive trajectory illustrates the sustained efforts to modernize and expand the defence industrial base.
Simultaneously, defence exports have seen exponential growth, rising from just ₹686 crore in FY 2013–14 to over ₹23,000 crore in FY 2024–25. This remarkable increase reflects the successful integration of policy reforms, industry incentives, and a clear focus on innovation and technology development.
The Road Ahead: Vision for Self-Reliance and Global Leadership
India’s defence manufacturing ambitions are aligned with its broader strategic objectives. The government has set an ambitious target to reach ₹3 lakh crore in defence production and ₹50,000 crore in exports by 2029. Achieving these goals will require continued investment in research and development, enhanced public-private partnerships, and a focus on cutting-edge technologies such as aerospace, naval systems, electronics, and unmanned platforms.
Efforts to strengthen Defence Corridors, promote MSMEs, and implement offset policies are expected to further accelerate growth and deepen the integration of domestic industry into the global supply chain. These initiatives not only enhance India’s defence preparedness but also contribute significantly to job creation and technological advancement.
Conclusion
The record defence production figure of ₹1.5 lakh crore in FY 2024–25 is a clear indication of India’s evolving stature as a self-reliant and globally competitive defence manufacturing hub. It demonstrates the success of government policies fostering innovation, collaboration, and indigenous development. As production and exports continue to grow, India is poised to become a formidable player on the global defence stage, strengthening its strategic autonomy and contributing to regional and international security.
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