---
title: "India's Defence Production Soars to ₹1.78 Lakh Crore, Exports Reach ₹38,424 Crore"
url: https://projectchintan.com/article/india-defence-production-soars-four-fold-liwz4
publisher: Project Chintan
author: Project Chintan Newsroom
section: Business
published: 2026-08-14T19:18:15.686Z
modified: 2026-08-14T22:00:05.609Z
language: en-IN
---

# India's Defence Production Soars to ₹1.78 Lakh Crore, Exports Reach ₹38,424 Crore

Domestic defence production in India has increased nearly four-fold to ₹1.78 lakh crore in the fiscal year 2025-26. Defence exports have also seen a significant rise, reaching an all-time high of ₹38,424 crore in the same period.

## Key takeaways

- India's domestic defence production reached ₹1.78 lakh crore in fiscal year 2025-26, a nearly four-fold increase since 2014.
- Defence exports surged to an all-time high of ₹38,424 crore in 2025-26, with 145 exporters supplying over 80 countries.
- The defence budget rose to ₹7.85 lakh crore in 2026-27, with capital expenditure at ₹2.19 lakh crore and R&D allocation up 90%.
- Government initiatives and procurement reforms are driving indigenisation and technological advancements in the defence sector.

India's defence production has seen substantial growth, reaching a record ₹1.78 lakh crore in the fiscal year 2025-26, a nearly four-fold increase from ₹46,000 crore in 2014. Union Defence Minister Rajnath Singh announced these figures, highlighting India's emergence as a significant defence manufacturing hub and net exporter.

The defence sector's transformation is attributed to initiatives like ‘Aatmanirbhar Bharat’ and ‘Make in India’. Public sector entities contributed approximately 76% to the total production, while the private sector's share grew to 24%.

Defence exports have also experienced a dramatic surge, escalating from ₹686 crore in 2013-14 to ₹38,424 crore in 2025-26, representing a rise of over 5,500%. Currently, India has 145 defence exporters supplying to more than 80 countries. The government anticipates achieving its target of ₹50,000 crore in defence exports by 2029.

Further strengthening the sector, the defence budget has expanded from ₹2.53 lakh crore in 2013-14 to ₹7.85 lakh crore in 2026-27. Capital expenditure has increased to ₹2.19 lakh crore, and R&D allocation has seen a 90% rise, reaching ₹29,100 crore.

Procurement reforms have also been implemented, including doubling the financial powers of field commanders and facilitating over ₹1.25 lakh crore in procurement through the revenue route to encourage indigenisation. Recent technological advancements mentioned include trials of the Tactical Advanced Range Augmentation system, MIRV-equipped Advanced Agni missile, and the indigenous Kusha long-range surface-to-air missile. India is also among a select group of nations pursuing hypersonic missile technology following successful tests of an active-cooled full-scale scramjet combustor.

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Canonical: https://projectchintan.com/article/india-defence-production-soars-four-fold-liwz4
Reported from: Multiple Sources