"Defense spending reaches an impressive Rs 1.51 lakh crore, marking a significant 90% increase over the past five years, as declared by Rajnath Singh"
India's defense production sector has achieved an all-time high in FY 2024-25, reaching a staggering Rs 1,50,590 crore. This significant growth represents a 18% increase over the previous fiscal's output of Rs 1.27 lakh crore and a 90% increase compared to Rs 79,710 crores in FY 2019-20.
The Minister of Defence, Rajnath Singh, has termed this upward trajectory as a clear indicator of India's strengthening defense industrial base. The growth is a direct result of policy focus on minimising imports and nurturing private sector defense industries.
The private sector has played a crucial role in this increase, contributing more actively to defense manufacturing and exports. The emphasis on indigenous production and easing of policies to encourage private participation have boosted capacity and innovation in defense technologies, leading to stronger overall output. As a result, the overall production of the private sector increased by 28% in FY 2024-25, and the private sector contributed 23% to the total defense production.
Defence Public Sector Undertakings (DPSUs) and other PSUs accounted for nearly 77% of total production. The production of DPSUs increased by 16% in FY 2024-25. This growth trajectory is a testament to the government's push for self-reliance in defense manufacturing, as outlined in the Aatmanirbhar Bharat initiative.
The record-setting achievement in defense production is not just catering to India's needs but also strengthening the potential of exports. The defense industrial complex is poised for continued acceleration with sustained policy support, increased private participation, and expanding export capabilities.
This growth in defense production is under the leadership of Prime Minister Narendra Modi, who has emphasised the importance of self-reliance in defense manufacturing. The Minister of Defence, Rajnath Singh, attributed the achievement to the collective efforts of the Department of Defence Production and all stakeholders. The growth in defense production is a clear indicator of India's strengthening defense industrial base, reflecting the positive results of the emphasis on indigenisation and reducing dependency on imports.
The private sector's active involvement in defense manufacturing and exports, along with policy shifts towards indigenous production and privatization, has bolstered finance in India's defense business. This growth in defense production and economy has positioned the nation for stronger exports and continued expansion in the defense sector.
