After the Philippines, Vietnam has now emerged as another customer for the BrahMos missile system, while Indonesia and several other Southeast Asian nations have shown strong interest in acquiring it.
Published: June 18, 2026, 8:28 AM IST
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Prime Minister Narendra Modi defence
New Delhi: In a major development, India’s defence manufacturing saga has touched a new and historic milestone. Driven by policy reforms under the Atmanirbhar Bharat initiative, the country’s domestic defence production touched a record Rs 1.78 lakh crore in FY 2025-26. It is important to note that this marks a 15.6 percent increase from the previous year’s production value of Rs 1.54 lakh crore and is more than double the Rs 84,643 crore recorded in FY 2020-21. Compared with a decade ago, India’s indigenous defence production has nearly quadrupled, rising from just Rs 43,746 crore in FY 2013-14.
What Drove the Surge?
Notably, this massive surge in defence production has come alongside the Modi government’s record Rs 7.85 lakh crore defence budget for FY 2026-27. Of this, Rs 2.19 lakh crore has been earmarked specifically for military modernisation and capital acquisitions.
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The defence budget itself has more than tripled compared to Rs 2.53 lakh crore in FY 2013-14, reflecting the government’s sustained focus on strengthening the country’s defence capabilities and promoting indigenous manufacturing.
Dominance of Public Sector Companies
The Public Sector Undertakings (DPSUs) have always been one of the largest contributors in India’s defence production. As per the data available, DPSUs contribute nearly 76 percent of the total output. However, the most significant change has been the growing participation of the private sector.
In FY 2025-26, private companies produced defence equipment worth approximately Rs 42,000 crore. As a result, the private sector’s share in total defence production increased from 22 percent a year earlier to 24 percent.
Defence Stocks Rally
- The record surge in India’s defence production triggered a strong rally in defence stocks on Wednesday.
- Shares of Paras Defence and Space Technologies rose 18.10 percent to close at Rs 1,286.55 on the BSE Sensex.
- Shares of Hindustan Aeronautics Limited gained 4.79 percent, ending the session at Rs 4,460.35.
- Bharat Dynamics Limited shares climbed 5.96 percent to close at Rs 1,310.30.
- Meanwhile, shares of Mazagon Dock Shipbuilders Limited advanced 3.44 percent, settling at Rs 2,551.60.
Record Defence Exports of ₹38,424 Crore
Today, India has emerged as a major defence exporter on the global stage and is no longer focused solely on reducing imports. In FY 2025-26, the country’s defence exports reached a record Rs 38,424 crore, with the private sector accounting for nearly half of the total.
After the Philippines, Vietnam has now emerged as another customer for the BrahMos missile system, while Indonesia and several other Southeast Asian nations have shown strong interest in acquiring it.
Indian-made artillery systems, radars, missiles, and patrol vessels are also gaining traction across parts of Asia, Africa, and Europe, further strengthening India’s position in the global defence market.
