Visitors at an exhibition organised by Indian defence manufacturers at Jaipur. File

| Photo Credit: PTI

For the third consecutive year, the contribution of private manufacturers to India’s total defence production has increased.According to data from the Department of Defence Production, private sector companies contributed ₹33,979 crore (22.56%) to the total defence production of ₹1,50,590 crore in financial year 2024-25. This marks the highest share of private sector participation since 2016-17, when it stood at 19%.In FY 2024-25, defence public sector undertakings (DPSUs) accounted for 57.50% of the total defence production, while Indian ordnance factories contributed 14.49%, and non-defence PSUs 5.4%.Since the opening of the defence manufacturing sector to private players in 2016-17, the contribution of private companies has ranged between 19% and 20%. It stood at 19.39% in 2022-23 and 20.93% in 2023-24, reflecting a steady upward trend.The larger share of production, however, continues to come from the Ordnance Factory Board, DPSUs, other PSUs, and joint ventures.According to the Ministry of Defence, India’s defence budget has witnessed a steady rise — from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26. In 2024-25, the country achieved its highest-ever defence production of ₹1.50 lakh crore, more than three times the ₹46,429 crore recorded in 2014-15.34-fold growth in exportsIndia’s defence exports have also surged — from ₹686 crore in 2013-14 to ₹23,622 crore in 2024-25, a 34-fold increase that underscores the government’s push for a self-reliant and globally competitive defence industry, the Ministry said. Today, India exports defence equipment to over 100 countries, with the U.S., France, and Armenia, emerging as the top three destinations in 2023-24.To foster private sector participation, the government has introduced several schemes, including Innovations for Defence Excellence (iDEX), the Defence Testing Infrastructure Scheme (DTIS), the Acing Development of Innovative Technologies with iDEX (ADITI) Scheme, and the Technology Development Fund (TDF). In addition, initiatives such as Make in India and the Positive Indigenisation Lists aim to boost innovation, indigenous manufacturing, and self-reliance in the defence sector. Published - August 19, 2025 09:26 pm IST