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India's Defence Production Reaches Record Rs 1.78 Lakh Crore in FY 2025-26, Showcasing Indigenous Capabilities
India's defence production has reached a record Rs 1.78 lakh crore in FY 2025-26, representing a 15.6% increase from the previous year and nearly quadrupling since FY 2013-14. Prime Minister Modi highlighted indigenous capabilities including fighter aircraft like Tejas, air defence systems like Akash, artillery platforms like Pinaka, and advanced missile systems including the Agni-V with MIRV technology and hypersonic systems, demonstrating India's progress toward military self-reliance under the Aatmanirbhar Bharat initiative.
Quick Facts
Who
Prime Minister Narendra Modi
What
Defence production reached record Rs 1.78 lakh crore
When
FY 2025-26
Where
India
- Defence production reached record Rs 1.78 lakh crore
- 15.6% increase from previous fiscal year
- Indigenous defence manufacturing nearly quadrupled over 12 years
- Tejas fighter aircraft inducted and expanded
- Akash air defence system operational with armed forces
India's defence production has achieved a historic milestone, reaching Rs 1.78 lakh crore in FY 2025-26, representing a 15.6% increase from the previous fiscal year's Rs 1.54 lakh crore. This record demonstrates India's accelerating progress towards military self-reliance as part of the Aatmanirbhar Bharat initiative. Indigenous defence manufacturing has nearly quadrupled from Rs 43,746 crore in FY 2013-14, reflecting sustained government commitment to reducing import dependency and developing domestic capabilities.
Prime Minister Narendra Modi highlighted the achievement by showcasing key indigenous defence platforms and systems developed over the past decade. The growth spans multiple defence domains, with notable advancements across air, land, and naval sectors. Fighter aircraft programmes including the Tejas Mk-1 and upcoming Tejas Mk-1A represent India's capability to design and manufacture modern combat aircraft domestically. The development roadmap includes the more advanced Tejas Mk-2 and the fifth-generation Advanced Medium Combat Aircraft (AMCA).
India's air defence capabilities have been strengthened through systems such as the Akash missile family, which offers improved reaction times and interception capability against aircraft, drones, and cruise missiles. The Akash-NG next-generation variant further enhances performance metrics. Additionally, the Pinaka artillery rocket system has transformed India's battlefield support capabilities with precision and mobility, increasingly replacing imported systems while attracting export interest.
Strategic deterrence has been reinforced through achievements in ballistic missile technology. The Agni-V missile recently demonstrated Multiple Independently Targetable Re-entry Vehicle (MIRV) capability, enabling a single missile to carry multiple warheads for separate targets—placing India among a select group of nations possessing this advanced technology. India has also made significant strides in hypersonic missile development, with systems capable of exceeding Mach 5 speeds.
The sustained growth in defence production reflects both increased investment in capability development and expanding international recognition of India's defence sector. The milestone underscores India's transition from primarily importing defence equipment to developing indigenous solutions across multiple technological domains, positioning the country as a self-reliant defence producer.
Why This Matters
India's record defence production milestone signals accelerating military self-reliance and reduced dependency on imports, strengthening national security and strategic autonomy. For investors and defence partners, this demonstrates India's growing capacity as a domestic defence manufacturer and potential exporter, while the advancement of critical technologies like MIRV-capable ballistic missiles and hypersonic systems elevates India's strategic deterrence posture in a competitive Indo-Pacific region.