NEW DELHI: India has set a new benchmark in defence exports, with shipments touching an all-time high of Rs 38,424 crore in FY 2025–26, marking a sharp 62.66 per cent jump over the previous financial year. Union Defence Minister Rajnath Singh highlighted the milestone on X, stating that the increase of Rs 14,802 crore reflects rising global confidence in India’s indigenous capabilities and manufacturing strength. The latest data also points to a balanced contribution across the sector. Defence Public Sector Undertakings (DPSUs) accounted for 54.84% of exports, while the private sector contributed 45.16%, underlining the emergence of a collaborative and expanding defence ecosystem.
Strong growth in production and policy push
India’s indigenous defence production reached a record Rs 1,27,434 crore in FY24, registering a remarkable 174% rise from Rs 46,429 crore in FY15. This surge has been driven by sustained policy support under the Atmanirbharta push led by Prime Minister Narendra Modi. The growth reflects consistent government backing over the past decade through higher budgetary allocations and structural reforms aimed at strengthening the country’s military-industrial base.
Under the inspiring leadership of PM Shri @narendramodi, India is scripting an impressive defence exports success story!
India defence exports have touched a new all time high with a record ₹38,424 crore in FY 2025-26. It marks a robust 62.66% growth over the previous fiscal.… pic.twitter.com/eAAh1PYX7e
— Rajnath Singh (@rajnathsingh) April 2, 2026
Defence spending has also risen significantly, increasing from Rs 2.53 lakh crore in FY14 to Rs 6.81 lakh crore in FY26, highlighting the government’s focus on enhancing military infrastructure. Efforts to reduce dependence on imports have yielded results, with both public and private players recording steady year-on-year growth, supported by improved ease of doing business and a strong push for indigenisation.
India now exports defence equipment to over 100 countries, including the United States, France and Armenia. DPSUs and other public sector units accounted for around 77 per cent of total production, while the private sector contributed 23 per cent. Notably, the private sector’s share has risen from 21% in FY24 to 23% in FY25, signalling its growing role in the ecosystem.
Exports also recorded an increase of Rs 2,539 crore, or 12.04 per cent, over FY24 levels. Looking ahead, the government has set an ambitious target of achieving Rs 3 lakh crore in defence manufacturing and Rs 50,000 crore in exports by 2029, positioning India as a major global defence manufacturing hub while supporting broader economic growth.
