India’s annual defence production hit a record INR1.78 trillion in FY 2025-26, extending the country’s push to build a deeper domestic military supply base.
The figure is 15.6% above the previous year’s INR1.54 trillion and nearly four times the FY 2013-14 level of about INR437 billion. The rise tracks higher indigenous output, stronger private-sector participation and a steady lift in export-oriented manufacturing. Defence spending has also climbed sharply over the same period, giving OEMs and tier-one suppliers more room to scale capacity and localise content.
The next test is throughput: converting budget momentum into higher-rate production, cleaner supply chains and more exportable platforms.