India’s annual defence production reached an all-time high of ₹1.78 lakh crore in FY 2025–26

¨   India’s annual defence production reached an all-time high of ₹1.78 lakh crore in FY 2025–26.

¨     Defence production stood at ₹84,643 crore in FY 2020–21 and ₹43,746 crore in FY 2013–14.

¨   Defence production includes the manufacture of weapons, military platforms, systems, ammunition, and other equipment for the armed forces.

¨     India’s defence industrial base comprises Defence Public Sector Undertakings (DPSUs), ordnance factories, and private sector manufacturers.

¨     DPSUs and other public sector units contributed about 76% of the total defence production in FY 2025–26.

¨   The private sector contributed nearly ₹42,000 crore, accounting for 24% of total defence production in FY 2025–26.

¨     India recorded defence exports worth ₹38,424 crore during FY 2025–26.

¨     The Union Budget 2026 allocated ₹7.85 lakh crore for the defence sector.

¨  Out of this allocation, ₹2.19 lakh crore was earmarked for military modernisation and capital acquisitions.