August 11,2025:
India’s defence production reached an unprecedented ₹1,50,590 crore in the financial year 2024–25, marking an 18% rise over last year’s ₹1.27 lakh crore and a massive 90% jump since FY 2019–20, according to official figures released by the Ministry of Defence.
Defence Minister Rajnath Singh hailed the achievement as a milestone in the country’s journey towards self-reliance, attributing the growth to coordinated efforts between Defence Public Sector Undertakings (DPSUs) and a steadily expanding private sector. The private sector’s share in total production rose from 21% to 23% in FY25, highlighting the success of the government’s Make in India and Aatmanirbhar Bharat initiatives.
Exports also hit a new high, with outbound shipments of defence equipment rising to ₹23,622 crore—an increase of nearly 12% over the previous year’s ₹21,083 crore. The boost in exports underscores India’s growing footprint in the global defence market.
The announcement triggered a rally in defence stocks. Bharat Electronics Ltd (BEL) and Ideaforge Technology gained up to 3% in intraday trade after the Defence Acquisition Council (DAC) approved capital acquisition projects worth ₹67,000 crore. The Nifty Defence index also rose over 1%, with several sectoral stocks gaining between 2% and 5%.
In a related development, the Ministry of Defence cleared a ₹30,000 crore deal to procure long-range unmanned aerial vehicles (UAVs) from two domestic manufacturers, strengthening indigenous drone manufacturing capabilities and opening doors for future export opportunities.
Analysts believe the record production figures, rising exports, and robust order pipeline point towards a sustained growth cycle for India’s defence sector. With rising geopolitical demand and a continued policy push, defence equities are expected to remain in investor focus in the coming quarters.
