Defence Production Reaches Record ₹1.5 Lakh Crore, Private Sector Gains Momentum

Fast Summary

• IndiaS defense production has reached a record-breaking ₹1.5 lakh crore in FY 2024-25, marking an 18% growth over the previous fiscal (₹1.27 lakh crore).
• There has been a significant rise (90%) compared to FY 2019-20’s defence production figure of ₹79,071 crore.
• Defence Public Sector undertakings (DPSUs) and other PSUs contributed 77% of the total production, while private companies accounted for the remaining 23%.
• the share of private sector participation has grown steadily from 21% in FY 2023-24 to 23% in FY 2024-25 and is projected to increase further as major projects become open for competitive bidding.
• Government initiatives such as Emergency Procurement programs have provided opportunities for startups and small businesses to enter defence manufacturing.
• Defence exports surged by ₹23,622 crore in FY 2024-25-a growth rate of approximately 12% compared to last year’s exports.

Indian Opinion Analysis
India’s achievement in crossing ₹1.5 lakh crore defence production highlights the effectiveness of policy reforms aimed at indigenisation and enhancing ease of doing business within this strategic sector. Growth among private firms-though still accounting for a smaller share when compared wiht DPSUs-signals positive diversification within India’s defence industrial ecosystem that will likely promote innovation over time due to competitive bidding processes opening up more big-ticket projects.

Another crucial factor is the steady rise in exports: from attracting global buyers via “Make-in-India” framework support toward military diplomatic interests/ influencing extended-fruit-bearing aims shaping Armed competitiveness readiness.

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