India's Defence Production Hits Record High of ₹1.5 Lakh Crore
India's annual defence production surged to a record ₹1,50,590 crore in FY 2024-25, an 18% increase from the previous year and a 90% rise since 2019-20. The Ministry of Defence credited policy reforms and the 'Aatmanirbhar Bharat' initiative for the growth. Defence Public Sector Undertakings (DPSUs) accounted for 77% of the output, with the private sector contributing 23%. This milestone reflects the country's strengthening industrial base and a successful push towards self-reliance in defence manufacturing.
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Key reforms include the Defence Acquisition Procedure 2020, an increase in FDI limits to 74% under the automatic route, establishment of Defence Industrial Corridors, and the Positive Indigenisation Lists, all aimed at boosting indigenous manufacturing and encouraging private sector participation.
'Aatmanirbhar Bharat' encourages development of domestic defence manufacturing through innovation schemes, joint ventures with global firms, and supporting both public and private sectors to produce advanced technologies locally, thereby reducing reliance on imports and fostering strategic autonomy.
Private firms like Adani Defence & Aerospace have manufactured UAVs for the Indian military and established large ammunition complexes, while collaborations such as HAL and Wipro3D’s 3D printing for aero engines highlight growing private sector roles in advanced defence production.
By 2029, India aims to achieve ₹3 lakh crore in annual defence production and ₹50,000 crore in defence exports, seeking to become a major global hub for defence manufacturing and a ‘net security provider’ in the region.