"Defense Output surge to 1,510,000 Crore Rupees, shows a significant increase of 90% in the last 5 years: Rajnath Singh"
India's annual defense production reached an all-time high of Rs 1,50,590 crore in FY 2024-25, marking an 18% growth over the previous year. This significant rise is attributed to targeted policy reforms, improved ease of doing business, and a strong strategic focus on indigenisation to reduce import dependence and build a robust domestic defense industrial complex.
The growth in defense production was achieved under the continued leadership of Prime Minister Shri Narendra Modi. The key factors contributing to this rise include:
- Policy Reforms: Over the past decade, reforms have eased regulatory hurdles and created a more business-friendly environment for defense manufacturers, particularly boosting private sector participation.
- Indigenisation Focus: Persistent emphasis on reducing imports via indigenously developed technologies and products has helped expand domestic production capabilities.
- Stakeholder Collaboration: The Ministry of Defence’s Department of Defence Production, defense public sector undertakings (PSUs), other public manufacturers, and private industry players have collectively contributed to increased production and exports.
- Export Growth: Defense exports also rose to Rs 23,622 crore in FY 2024-25, indicating a growing global market presence.
The growth in defense production reflects the success of the Aatmanirbhar Bharat initiative spearheaded by Prime Minister Modi. The emphasis to reduce dependency on imports and create a defense industrial complex that caters to India's needs and strengthens export potential has shown positive results.
Both defense PSUs and the private sector contributed to this growth, with PSUs accounting for 77% of output and the private sector's share increasing to 23%, reflecting its expanding role in the defense ecosystem. The overall production of DPSUs increased by 16% in FY 2024-25, while the private sector production grew by 28%.
The Minister of Defense, Rajnath Singh, lauded the efforts of the Department of Defence Production and all stakeholders in achieving this landmark. He highlighted the private sector's increased contribution to defense production, which reflects the sector's growing role in the country's defense ecosystem.
The record-setting achievement in defense production is attributed to far-reaching policy reforms, enhanced ease of doing business, and a strategic focus on indigenization over the past decade. This growth aligns with the government's Aatmanirbhar Bharat vision, emphasizing self-reliance in defense manufacturing. The upward trajectory in defense production is considered another clear indicator of India's strengthening defense industrial base.
The significant increase in defense production, facilitated by policy reforms, has led to an expansion in both domestic and export capabilities, with defense exports amounting to Rs 23,622 crore in FY 2024-25. This growth in exports is a testament to the growing global market presence that the industry exhibits. Furthermore, the private sector's contribution to defense production has increased significantly, illustrating its emergent role in financing and industry sectors.
