India’s Defence Production Hits Record ₹1.5 Lakh Crore in FY25: Exports, Orders and Future Growth
India’s defence sector is witnessing unprecedented momentum, with record-breaking production levels, rising global exports, and increased orders for indigenous systems.
The government’s strong push for self-reliance in defence manufacturing, coupled with growing geopolitical challenges, has significantly strengthened the order books of major defence companies.
Analysts predict that this growth trajectory will continue as India prioritizes border security and indigenous capabilities.
Record Defence Production in FY25
In FY25, India achieved a historic milestone by recording annual defence production of ₹1.5 lakh crore.
- This marks an 18% increase compared to FY24’s ₹1.27 lakh crore.
- Compared to FY20’s ₹79,071 crore, the growth is an impressive 90% surge in just five years.
This growth demonstrates the success of the government’s long-term policies under the “Aatmanirbhar Bharat” initiative, aimed at reducing dependence on foreign imports and strengthening domestic capabilities.
Defence Exports Reach New Heights
India’s indigenous defence products are gaining recognition worldwide. Defence exports surged to ₹23,622 crore in FY25, creating a new all-time high.
- In FY20, exports were only ₹9,116 crore, highlighting a significant leap in global acceptance.
- The government has set an ambitious target of ₹50,000 crore annual exports by 2029, which would double India’s footprint in the global defence market.
Countries in Southeast Asia, Africa, and the Middle East have shown keen interest in India’s indigenous systems like drones, missiles, and surveillance equipment.
Operation Sindoor: Showcase of Indigenous Strength
India’s defence capabilities came under the spotlight during Operation Sindoor, when the nation successfully intercepted drones and missiles launched by Pakistan.
- Indigenous missile defence systems proved highly effective.
- Orders for the BrahMos missile system surged after its pivotal role in striking Pakistani military infrastructure, including air bases, cantonments, and terror camps.
This operation has positioned India as a credible supplier of cutting-edge defence technology to global buyers.
Policy Push: Mission Sudarshan Chakra
Prime Minister Narendra Modi further boosted investor confidence in the sector by announcing “Mission Sudarshan Chakra” during his Independence Day address.
- The mission emphasizes indigenous jet engine development, which will significantly reduce import reliance.
- It reinforces India’s strategy of building a full-spectrum domestic defence ecosystem.
Industry experts believe that if executed effectively, this mission could revolutionize India’s aviation and aerospace sector.
Impact on Defence Majors and Investors
The surge in orders and exports has greatly benefited defence companies such as Hindustan Aeronautics Limited (HAL), Bharat Dynamics Limited (BDL), Bharat Electronics Limited (BEL), and private players like L&T Defence.
- Their order books are at all-time highs, providing strong revenue visibility for the next several years.
- Market analysts expect consistent inflows of contracts as India modernizes its armed forces.
- Long-term investors see these companies as key beneficiaries of both domestic procurement and international demand.
Future Outlook
The Indian defence sector’s growth story rests on three major pillars:
- Government Policy Support – Continued emphasis on “Make in India” and import substitution.
- Global Opportunities – Rising exports and collaborations with foreign buyers.
- Technological Innovation – Investment in AI, drones, missile systems, and indigenous jet engines.
If India achieves its ₹50,000 crore export target by 2029, it will firmly establish itself as one of the top defence exporters globally.
Conclusion
India’s defence sector is in the middle of a structural transformation. With record production, rising exports, and strong government initiatives, the industry is well-positioned for sustainable growth. Defence stocks are gaining investor attention, but execution and global competition will remain key factors to monitor.