India's defence production value rises to INR1.78 trillion

Janes Defence Budgets forecasts that India's defence budget will reach the equivalent of more than USD100 billion by 2030. (Janes Defence Budgets)

The value of defence production in India reached INR1.78 trillion (USD18.8 billion) in fiscal year (FY) 2025–26, up 15.6% over FY 2024–25.

Defence Minister Rajnath Singh said on 17 June that indigenous defence production has increased nearly fourfold from about INR437 billion in FY 2013–14 and more than doubled from approximately INR846 billion in FY 2020–21. The figures cover the value of domestically manufactured military equipment, platforms, and services in a FY.

Singh attributed the growth to efforts by the Department of Defence Production and other stakeholders.

“This upward trajectory is a clear indicator of the country's expanding defence industrial base,” Singh said. “With sustained policy support, several new initiatives, increased private sector participation, and growing export capabilities, the defence production sector is poised for continued acceleration in the years ahead.”

A document released the same day by the Press Information Bureau (PIB) said India's defence budget has also increased over the past 10 years to support military preparedness, modernisation, and indigenous manufacturing.

The defence budget rose from INR2.53 trillion in FY 2013–14 to INR7.85 trillion in FY 2026–27.

Capital expenditure increased from about INR946 billion in FY 2014–15 to INR2.19 trillion in FY 2026–27, according to the document. Capital expenditure supports the acquisition, modernisation, and development of major military assets to build future capability.

Defence research and development (R&D) funding has more than doubled, with greater participation from industry, start-ups, and academia, the document said. The R&D allocation rose from about INR137 billion in FY 2014–15 to around INR291 billion in FY 2026–27, an increase of more than 112%.