On August 9, Defence Minister Rajnath Singh announced that India’s defence production has reached record height’s symbolizing the government’s unprecedented resolve to steer towards Atmanirbhar Bharat and achieve full-scale defence indigenization. India’s defence production stands at 1,50,590 crore rupees in the Financial Year(FY) 2024-25. This is a stellar 18 per cent jump compared to the previous financial year. The current defence production is also a massive 90 per cent increase since the Financial Year (FY) 2019-20. These numbers indicate the government’s commitment on defence spending and production which is increasing with great momentum with every passing year.
Rajnath Singh also applauded the collective effort of all the stakeholders involved in the process of defence production and who has played a key role in achieving this remarkable feet. “I commend the collective effort of the Department of Defence Production and all the stakeholders i.e. DPSUs, public sector manufacturers and the private industry in achieving this landmark. This upward trajectory is a clear indicator of India’s strengthening defence industrial base”, Minister wrote on his X platform.
I commend the collective efforts of the Department of DefenceProduction and all stakeholders i.e., DPSUs, public sector manufacturers, and the private industry in achieving this landmark. This upward trajectory is a clear indicator of India's strengthening defence industrial…
— Rajnath Singh (@rajnathsingh) August 9, 2025
As per the official reports, Public Sector Undertakings(PSUs) account for approximately 77 per cent of the total defence production. Remaining 23 per cent is contributed by the private sector. There is a sharp 2 per cent increase compared to the previous years, in the contribution of the private sector to the defence production. This rise mirrors the gradual rise in the role of private entities in working for the defence production and national security causes, which is a commendable feet.
Defence Ministry also highlighted the underlining reasons for the drastic spike in defence production. Far-reaching policy reforms of the government, enhanced ease of doing business ecosystem, incentives for the private sector to participate in the defence industry and due to the focus on series of defence indigenization programmes, there is a stark spike in defence investment and production, the Ministry reiterates.
The rise in defence production not just adds leverage to the government’s goal of Atmanirbhar Bharat but also enhances the global stature of India as a defence manufacturing hub and a credible defence partner under crucial circumstances. This inturn attracts more defence investment.
The need and vitality to build a solid indigenous defence ecosystem has already been realized during Operation Sindoor. The latest increase in defence production, further boosts both the morale and military capabilities of India, especially in the aftermath of conflict with Pakistan. Specifically, India’s indigenous weapon systems such as Akash NG, BrahMos, Nagastra-1 played a crucial role in enhancing the operational and defensive capabilities of India during the combat scenario. The latest spike in defence production thus gives further mileage to boost India’s defence capabilities and to carve a strategic deterrence.
