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

Fall in Gold Rate in India Continues; 24K/100gm Plunges Rs 85,800 in Just 3 Days; MCX Gold Price Flat; Outlook

Gold Rate Today: Gold Prices Crash Over Rs 1 Lakh per 24K/100g in 4 Days Amid Iran-Israel Conflict; Outlook

Gold Rate in India Takes U-Turn! 24K Jumps Rs 23,000 In Day! Silver Stable After Weak US Jobs Data | March 7

4:1 Bonus + 2:1 Stock Split + Rs. 12 Dividend: 3 Stocks to Watch as They Turn Ex-Date On March 9

Gold Rates In India Today March 6, 2026: Gold Rate Crash Fifth Day In Row By Rs 1,09,800; 24K, 22K, 18K Gold

Gold Rates & Silver Rates Today Live: MCX Gold & Silver May Take Hit On Inflationary Fear; 24K, 22K, 18K Gold

Gold Rate Today, 9 March Outlook: Rise in Gold Prices in India After Falling Nearly Rs 1.2 Lakh Per 24K/100gm

Gold Rates & Silver Rates Today Live: Physical Gold Rates Jump, MCX Gold & Silver Outlook; 24K, 22K, 18K Gold

LPG Prices In India From March 7: 14.2KG LPG Prices Hiked First Time In 1-Year By Rs 60; 19K LPG Up By Rs 115

Arjun Tendulkar-Saaniya Chandhok Wedding: Who is Sachin Tendulkar’s Daughter-in-Law? See Her Family, Net Worth

Stock Market Outlook, March 5: Sensex, Nifty May Stay Under Pressure Amid West Asia Tension, Rising Oil Prices



Click it and Unblock the Notifications