Record defence production wins market approval, lifts sector stocks. Paras Defence gains 18 pc
India's defence production has achieved a historic high of ₹1.78 lakh crore in FY 2025-26, marking a significant 15 pc growth
On Wednesday, the government announced that the country's annual defence production has reached a record high of ₹1.78 lakh crore in the Financial Year (FY) 2025-26, indicating the rapid expansion of the country's military-industrial base. This is a 15.6 per cent growth, compared to the previous
On Wednesday, the government announced that the country's annual defence production has reached a record high of ₹1.78 lakh crore in the Financial Year (FY) 2025-26, indicating the rapid expansion of the country's military-industrial base. This is a 15.6 per cent growth, compared to the previous
On Wednesday, the government announced that the country's annual defence production has reached a record high of ₹1.78 lakh crore in the Financial Year (FY) 2025-26, indicating the rapid expansion of the country's military-industrial base. This is a 15.6 per cent growth, compared to the previous
On Wednesday, the government announced that the country's annual defence production has reached a record high of ₹1.78 lakh crore in the Financial Year (FY) 2025-26, indicating the rapid expansion of the country's military-industrial base. This is a 15.6 per cent growth, compared to the previous fiscal year’s output of ₹1.54 lakh crore.
Defence production has more than doubled since FY 2020-21, when the figure was ₹84,643 crore, which is a 110 per cent increase.
The indigenous defence production has increased almost four times from ₹43,746 crore in FY 2013-14, the defence ministry stated in a release.
The markets cheered the update, with the Defence index rising nearly four per cent. Paras Defence led the pack, rising over 18 per cent at the close of the market day.
Hindustan Aeronautics Ltd (HAL), Bharat Dynamics, Solar Industries, and Swan Defence rose over four per cent. Stocks of shipbuilders too have risen, with GRSE being the top gainer with over a five per cent increase.
The defence ministry noted that Defence Public Sector Undertakings (DPSUs) and other PSUs accounted for approximately 76 per cent of total production, while the private sector contributed 24 per cent, which is an increase from 22 per cent in FY 2024-25.
The share of the private sector is at its all-time high of around Rs 42,000 crore in FY 2025-26, reflecting its expanding role in the defence ecosystem, the ministry said.
The surge in domestic production has also supported a sharp rise in defence exports, which reached a record ₹38,424 crore during FY 2025-26.
Defence Minister Rajnath Singh cited the defence production as evidence of India's expanding defence industrial base and praised the efforts of the Department of Defence Production, public sector enterprises and private industry.
He expressed confidence that continued policy support, greater private sector participation, new initiatives and rising export capabilities would further accelerate growth in the defence manufacturing sector in the coming years.