India’s defence manufacturing ecosystem has hit a major milestone in FY2024-25, clocking a historic ₹1.54 lakh crore in total defence production, according to official data released on Tuesday. This marks the highest output ever recorded in the country’s defence sector, reflecting the rapid expansion of indigenous manufacturing under the “Aatmanirbhar Bharat” push.
Alongside production, the nation’s defence exports surged to a record ₹23,622 crore, showcasing India’s growing footprint in the global arms market. Over the past five years, India has steadily expanded its export portfolio from missiles and aerospace components to naval systems gaining traction in regions across Southeast Asia, Africa, and the Middle East.
Defence Stocks Rally on Market Optimism
Following the announcement, defence stocks witnessed a strong upward movement on Dalal Street. Major players such as Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), Bharat Forge, and Paras Defence saw notable gains, driven by bullish investor sentiment and robust order visibility.
Market analysts attribute the surge to a combination of record production figures, improving exports, and a rise in contract awards. The Ministry of Defence confirmed that 193 defence contracts have been signed so far in FY25, covering advanced platforms, weapon systems, and critical infrastructure upgrades.
Aatmanirbhar Bharat Strengthens Defence Manufacturing
The defence ministry noted that greater private-sector participation, streamlined procurement processes, and targeted policy reforms have significantly boosted domestic capabilities. Indigenous platforms from fighter aircraft and drones to artillery systems and naval vessels now dominate procurement lists, reducing import dependence.
Industry experts suggest that with continued momentum, India is on track to become a major defence manufacturing hub globally.
Looking Ahead
With order books swelling and export pipelines strengthening, FY26 is expected to build on this performance. The government aims to surpass ₹50,000 crore in defence exports by 2028, signalling India’s long-term ambition to emerge as a top arms exporter.
The latest figures underscore a clear trend: India’s defence sector is not only growing, it is transforming.
