India defence production growth to ₹1.50 lakh crore in FY 2024–25 marks an 18% rise, driven by Make in India and Atmanirbhar Bharat initiatives, with record exports.
India’s Defence Production Soars to Historic ₹1.50 Lakh Crore in FY 2024-25
In a landmark achievement for India’s defence sector, annual defence production reached an unprecedented ₹1,50,590 crore in the financial year 2024–25. This milestone reflects robust growth—an 18% increase over the previous year’s ₹1.27 lakh crore output, and a staggering 90% rise since FY 2019–20, when production stood at ₹79,071 crore
Expansion Driven by Indigenous Push and Policy Support
This sharp rise is attributed to sustained government policies emphasizing domestic manufacturing—chief among them the “Make in India” initiative and the push for Atmanirbhar Bharat. The result has been a steady move away from imports, with both public and private sectors reinforcing India’s defence manufacturing backbone
Public Sector still leads, but Private Sector Grows Significantly
While traditional public sector units (DPSUs/PSUs) remain dominant—contributing around 77% of total production—the private sector’s share has risen to 23% in FY 2024–25, up from 21% the previous fiscal. Notably, production growth in the private sector was around 28%, compared to the public sector’s 16%
Exports at All-Time Highs
India’s defence exports also soared, hitting a new record of ₹23,622 crore in FY 2024-25—a notable increase from ₹21,083 crore in FY 2023-24 This growth underlines India’s expanding footprint in global defence markets.
Significance for Aspirants & the Nation
For students preparing for government exams in defence, civil services, banking, railways, and teaching, understanding this growth trajectory provides critical insight into government priorities, industrial policy, and strategic sectors.
B) Why This News Is Important
Why This Development Matters
India’s surge in defence production signals a pivotal shift in national strategy. Firstly, it strengthens national security by reducing dependence on imports and enhancing self-reliance—key considerations for civil service and defence exam aspirants. Secondly, the growing participation of private players indicates a transforming industrial landscape, opening opportunities for policymaking and economic reforms in relevant sectors. Thirdly, rising exports reflect India’s credibility and competitiveness on the global stage—valuable context for students preparing for banking, UPSC, or railway exams that involve international trade and defence economics. Lastly, the policies driving this success—the Make in India and Atmanirbhar Bharat initiatives—underline the Indian government’s focus on strategic autonomy and manufacturing-led growth, topics frequently tested across competitive exams.
C) Historical Context
Background and Evolution of India’s Defence Manufacturing
India’s defence production journey has been shaped by policy shifts and strategic imperatives. In FY 2019–20, production was ₹79,071 crore. Thanks to consistent policy momentum—including the Make in India initiative, indigenisation drives, and financial empowerment of armed forces—output grew to ₹1.27 lakh crore by FY 2023–24
Long-term reforms, technology transfers (e.g., DRDO and industry collaborations), and partnerships like the Project Akashteer have fostered innovation. The transition from relying on DPSUs to encouraging private sector participation marks a significant policy recalibration, aligning India’s defence ecosystem with global manufacturing trends
D) Key Takeaways from “Defense Production Record”
| # | Key Takeaway |
|---|---|
| 1 | FY 2024–25 defence production reached ₹1,50,590 crore—an 18% rise over FY 2023–24 and 90% increase since FY 2019–20. |
| 2 | Public sector (DPSUs/PSUs) still dominates with ~77% share; private sector share rose to ~23%. |
| 3 | Defence exports touched a record ₹23,622 crore in FY 2024–25. |
| 4 | Growth was fueled by Make in India, Atmanirbhar Bharat, indigenisation, and policy reforms. |
| 5 | Increasing private sector role signals a shift toward a diversified, innovation-driven defence industry. |
FAQs – Frequently Asked Questions
1. What was India’s total defence production in FY 2024–25?
India’s total defence production in FY 2024–25 was ₹1,50,590 crore, marking an 18% growth compared to the previous fiscal year.
2. Which sector contributes the most to India’s defence production?
The public sector, including Defence Public Sector Undertakings (DPSUs) and PSUs, contributes around 77% of India’s total defence production.
3. What percentage of defence production does the private sector hold?
The private sector’s share in FY 2024–25 was about 23%, showing steady growth over the past few years.
4. How much did India’s defence exports amount to in FY 2024–25?
India’s defence exports reached a record ₹23,622 crore in FY 2024–25.
5. Which government initiatives have boosted defence production in India?
Key initiatives include Make in India, Atmanirbhar Bharat, and targeted indigenisation policies.
6. How has India’s defence production changed since FY 2019–20?
Defence production increased by around 90%—from ₹79,071 crore in FY 2019–20 to ₹1,50,590 crore in FY 2024–25.
7. Why is increasing defence production significant for India’s national security?
It reduces reliance on imports, enhances self-reliance, and strengthens strategic autonomy.
8. What is the growth rate of the private sector in defence production for FY 2024–25?
The private sector witnessed a growth rate of approximately 28% compared to the previous fiscal.
9. How does defence production growth impact the Indian economy?
It generates employment, promotes technological innovation, boosts exports, and contributes to GDP growth.
10. Which exams might include questions on this defence production data?
This topic is relevant for UPSC, State PCS, SSC, Banking, Railways, Defence Services Exams (NDA, CDS, AFCAT), and other competitive exams.
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