Defense Minister Rajnath Singh attributes the 15% growth in financial year 2025-26 to policy initiatives
India’s defense production surged in the financial year that ended in March, driven by initiatives under the Make in India program as its defense industrial base rapidly expands.
Defense Minister Rajnath Singh said defense production surged 15% in financial year 2025-26 to $21 billion – from $18 billion a year ago.
New Delhi is seeking to reduce dependence on imports while developing indigenous capabilities across land, air, naval, missile, and space domains.
It has successfully indigenized thousands of military items, reducing import dependence and simultaneously boosting its own defense exports. Domestic ammunition production, for instance, has risen from 32% in 2014 to 90% in 2026.
India, however, remains the world’s second largest importer of major arms as it seeks to plug capability gaps quickly. Russia, France, and Israel are among its top arms suppliers.
Singh noted that the production figure for FY26 is a giant leap from the $8.94 billion recorded in 2020-21, and a 110% rise from $4.62 billion in 2013-14.
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“The remarkable rise in India’s defense production in recent years is the result of the collective efforts of the Department of Defence Production and all other stakeholders,” he said in an X post.
The defense ecosystem’s growth is spearheaded by nine public sector undertakings or government-backed companies, more than 430 licensed private defense companies, and thousands of medium and small enterprises.
Under the inspiring leadership of PM Shri @narendramodi, India’s defence production is reaching new heights every year. I am delighted to inform everyone that India’s annual defence production has surged to an all-time high of Rs 1.78 lakh crore in the Financial Year (FY)…
— Rajnath Singh (@rajnathsingh) June 17, 2026
India spent $92.1 billion on its military in 2025, making it the fifth largest country in terms of military expenditure, according to the Stockholm International Peace Research Institute.
The South Asian nation has earmarked $82.9 billion for defense in the federal budget for the current financial year. This accounts for 15% of the total federal spending.
Of this, $14.7 billion is for procurement from domestic defense industries, in sync with the Make in India push.
June 17, 2026 at 07:45PM
RT