Defence production soars to a record Rs 1.78 lakh crore in Financial Year 2025-26

1. At a Glance

India's annual defence production touched an all-time high of ₹1.78 lakh crore in FY 2025-26, a flagship metric of the Atmanirbhar Bharat in Defence push [S1].
The number anchors GS-III questions on indigenisation, defence exports, and the public–private defence industrial base [S1][S2].

Ministry of Defence (MoD) announced provisional FY 2025-26 production at ₹1,78,000 crore, a 15.6% YoY growth over FY 2024-25's ₹1.54 lakh crore [S1].
Defence exports simultaneously hit a record ₹38,424 crore (vs ₹686 crore in FY 2013-14), exporting to 80+ countries [S3].

FY 2013-14: Indigenous defence production ₹43,746 crore; exports ₹686 crore [S1][S3].
2018: iDEX (Innovations for Defence Excellence) launched April 2018 to engage MSMEs/start-ups [S3].
Aug 2020: SRIJAN portal launched by Department of Defence Production for indigenisation [S3].
2020 onwards: Five Positive Indigenisation Lists (PILs) of services + five PILs of DPSUs notified; ban on import beyond fixed timelines [S3][S4].
FY 2020-21: Production ₹84,643 crore — baseline for the 110% jump [S1].
FY 2025-26: ₹1.78 lakh crore production; ₹38,424 crore exports [S1][S3].

Implementing ministry: Ministry of Defence — Department of Defence Production (DDP) [S2][S3].
FY 2025-26 production: ₹1,78,000 crore (provisional) [S1].
DPSUs + other PSUs share: ~76%; Private sector share: 24% (~₹42,000 crore — record high, up from 22% in FY 2024-25) [S1].
Growth since FY 2020-21: 110%; since FY 2013-14 indigenous production ~4x [S1].
Defence exports FY 2025-26: ₹38,424 crore; 80+ destination countries [S3].
Target by 2029: ₹3 lakh crore production and ₹50,000 crore exports [S3].
SRIJAN: 38,000+ items listed, 14,000+ indigenised (as of Feb 2025) [S3].
PILs: 5,500+ items listed, 3,000+ indigenised; PILs are import-restriction lists, not import bans on day one — timelines staggered [S3][S4].
iDEX: 549 problem statements, 619 startups/MSMEs, 430 contracts signed [S3].
Fifth PIL (DPSUs): 346 items notified in 2024 [S4].

Economic
Private sector contribution at all-time high (~₹42,000 crore) signals deepening defence-industrial base [S1].
Defence exports up ~56x since FY 2013-14, narrowing the strategic trade deficit [S3].
Strategic / Geopolitical
Reduced import dependence in the wake of supply-chain shocks (Russia–Ukraine) and Indo-Pacific posture [S2].
Export footprint of 80+ countries projects India as a credible mid-tier arms supplier [S3].
Scientific / Technological
iDEX–DIO, Technology Development Fund (TDF), DRDO Industry Academia Centres of Excellence seed dual-use R&D [S2][S3].
Administrative / Governance
Corporatisation of OFB (2021) into 7 DPSUs (e.g., Munitions India, AVANI, AWEIL) restructured the production base [S2].
Defence Acquisition Procedure (DAP) 2020 and Buy {Indian-IDDM} category prioritise indigenous design [S2].
Ethical / Governance
PIL mechanism uses negative list approach (banning imports of listed items past cut-off) — debated for crowding out best-in-class platforms [S4].

17 Jun 2026: MoD announces ₹1.78 lakh crore FY 2025-26 production milestone [S1].
20 Nov 2025: PIB backgrounder "Defence Atmanirbharta: Record Production and Exports" published with exports figure of ₹38,424 crore [S3].
Mar 2025: "Make in India Powers Defence Growth" document collates DPSU, iDEX, SRIJAN progress [S2].
2024: Fifth Positive Indigenisation List of 346 items for DPSUs notified [S4].

FY 2025-26 defence production: ₹1.78 lakh crore [S1].
YoY growth: 15.6% over FY 2024-25's ₹1.54 lakh crore [S1].
Private sector share: 24% (~₹42,000 crore) [S1].
DPSUs + other PSUs share: ~76% [S1].
Growth since FY 2020-21 (₹84,643 cr): 110% [S1].
Defence exports FY 2025-26: ₹38,424 crore [S3].
iDEX launched: April 2018 under DDP, MoD [S3].
SRIJAN portal launched: August 2020 [S3].
Implementing department: Department of Defence Production, not DRDO [S2].
2029 targets: ₹3 lakh crore production; ₹50,000 crore exports [S3].
OFB corporatised in 2021 into 7 DPSUs [S2].
Defence procurement framework: DAP 2020 (not DPP) [S2].
Top category in DAP: Buy (Indian-IDDM) — Indigenously Designed, Developed & Manufactured [S2].
Five PILs each issued by DMA (for services) and DDP (for DPSUs) [S3][S4].

GS-III: Indian Economy → Industrial growth; Security → Defence; Science & Tech → Indigenisation.
GS-II: Government policies & interventions (Atmanirbhar Bharat).
Likely question stems: 1. "Examine the role of the private sector and start-ups in transforming India's defence industrial base." 2. "India's defence exports have grown over 50-fold in a decade; assess the structural reforms behind this and the challenges that remain." 3. "Critically evaluate the Positive Indigenisation List approach as an instrument of strategic self-reliance."

Defence Acquisition Procedure (DAP) 2020 — procurement framework underpinning Buy (Indian-IDDM).
Corporatisation of Ordnance Factory Board (2021) — restructuring of legacy production.
iDEX & Defence India Start-up Challenge (DISC) — innovation funnel.
Strategic Partnership Model (2017) — private OEM tie-ups for big-ticket platforms.
Defence Industrial Corridors — Uttar Pradesh & Tamil Nadu nodes.
FDI in Defence — 74% automatic, 100% via approval.
DRDO Technology Development Fund (TDF) — R&D for MSMEs.
SCOMET / Export Authorisation regime — DGFT-administered defence export controls.

Production ≠ Exports: ₹1.78 lakh crore is production; ₹38,424 crore is exports for FY 2025-26 [S1][S3].
DDP, not DRDO, runs PILs, SRIJAN, iDEX; DRDO is the R&D agency [S2][S3].
Two sets of PILs: one by DMA (services-level platforms), one by DDP (DPSU sub-systems/components) — frequently confused [S3][S4].
Private share is 24%, not majority — narrative of "private-led" defence boom is overstated [S1].
DAP 2020 replaced DPP 2016; "DPP" is outdated terminology [S2].

[S1] Press Release — Defence production soars to a record ₹1.78 lakh crore in FY 2025-26 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2273824 — (tier 1)
[S2] Make in India Powers Defence Growth (MoD/PIB backgrounder, Mar 2025) — https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/mar/doc2025325526501.pdf — (tier 1)
[S3] Defence Atmanirbharta: Record Production and Exports (PIB, 20 Nov 2025) — https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/nov/doc20251120699601.pdf — (tier 1)
[S4] MoD notifies fifth Positive Indigenisation List of 346 items for DPSUs — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2033571 — (tier 1)