India's Defense Production Hits Record High of $18.8 Billion in FY2025-26, Up 15.6% Year-on-Year

India's Ministry of Defence has released data confirming that the country's annual defense manufacturing output reached INR 1.78 trillion (approximately USD 18.84 billion) in the 2025–26 fiscal year (FY2025-26), setting a new all-time record. The figure represents a 15.6% increase compared to the previous fiscal year.

'Make in India' Policy Bears Fruit

The milestone is widely seen as a direct result of India's long-running push to build a self-reliant domestic defense industrial base. Under the government's flagship 'Make in India' initiative, authorities have provided sustained support to local defense manufacturers, incentivized domestic companies to fulfill military procurement contracts, and actively attracted foreign investment to establish defense production facilities on Indian soil.

Drones and Emerging Technologies Drive Diversification

The rapid expansion of emerging defense technology sectors — including military drones, electronic warfare systems, and aerospace — has contributed significantly to the growing diversification of India's defense industry. Indigenous research, development, and production of defense-grade unmanned aerial systems (UAS) is increasingly regarded as a cornerstone of India's broader strategy to strengthen defense self-sufficiency.

Eyes on Global Defense Supply Chains

India's Ministry of Defence stated that the record output figures demonstrate the steadily improving competitiveness of the country's defense industry. The government has indicated it will continue to push for expanded defense exports, with the long-term aim of securing a larger share of global defense supply chains.

The latest data reinforces India's trajectory as one of the world's fastest-growing defense manufacturing hubs, with ambitions that extend well beyond domestic procurement.

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