New Delhi, April 2

Defence exports have touched an all-time high of Rs 38,424 crore in the Financial Year (FY) 2025-26, marking a massive rise of Rs 14,802 crore (62.66%) over the previous fiscal year’s figure of Rs 23,622 crore. In this landmark milestone, Defence Public Sector Undertakings (DPSUs) and the private sector have contributed 54.84% and 45.16% respectively. This accomplishment of the Indian defence industry is in line with the Prime Minister Shri Narendra Modi’s vision to position India among the world’s top defence exporters.

Raksha Mantri Shri Rajnath Singh has lauded this exemplary performance of the Department of Defence Production, Indian defence exporters & all other stakeholders and asserted that India is marching ahead towards becoming a global manufacturing hub for defence equipment. In a post on X, Raksha Mantri stated that under the inspiring leadership of PM Modi, India is scripting an impressive defence exports success story.

DPSUs’ exports surged by 151% compared to the previous year, with private firms showcasing their robust presence by recording an increase of 14%. In terms of value of contribution, the private sector accounted for Rs 17,353 crore worth of defence exports, while DPSUs contributed Rs 21,071 crore. Their respective figures in the previous financial year stood at Rs 15,233 crore and Rs 8,389 crore.

This record high figure indicates an increase by around three times in the last five years.

This sharp rise highlights the increasing global acceptance of Indian made defence products and the sector’s growing integration into the international supply chains. Apart from being a successful global partner for systems/sub-systems, India is exporting defence equipment to more than 80 countries as of FY 2025-26. The number of exporters underwent a surge to 145 from 128, a 13.3% rise from the previous fiscal.

The Government’s continuous endeavours towards ease of doing business and facilitation of defence exporters have paved the way for a performance oriented and globally competitive defence industry. To support defence exporters in this growth trajectory, the Department of Defence Production has streamlined defence export regulatory processes with a revamped online portal and simplified Standard Operation Procedure for authorisations.

The Ministry of Defence, has fully utilized its capital outlay of Rs 1.86 Lakh crore for Defence Services provided for the FY 2025-26 at Revised Estimates stage. This milestone achieved by MoD is in continuation to the complete utilization of the capital budget achieved during FY 2024-25 after many years. The overall utilization of Defence Budget including MoD(civil), Pension, etc. during the FY 2025-26 stands at 99.62% against final allocation to MoD.

The original appropriation for capital expenditure was Rs 1.80 Lakh crore, which was further augmented by the Ministry of Finance in view of the pace of expenditure achieved by MoD during the first two quarters and considering the increased requirement of the Forces for Modernization and other purposes post Operation Sindoor.

 A significant portion of the expenditure is towards acquisition of aircraft and Aero engines followed by Land Systems, electronic warfare equipment, armaments, ship building, aviation stores and projectiles.

In addition to modernizing Armed Forces, the effective utilisation of expenditure will also aid infrastructural development in the border areas. This will also support the overall economic growth of the country through its multiplier effect on capital formation and generation of employment opportunities.

In the Financial Year 2025-26, AoN for 109 proposals amounting Rs 6.81 Lakh crore has been accorded by MoD, compared to 56 proposals worth Rs. 1.76 Lakh Crore approved in FY 2024-25. Also Capital procurement contracts for a total 503 proposals amounting Rs. 2.28 Lakh Crore were signed by MoD in FY 2025-26.

With a hike of 22%, the Ministry of Defence has been allocated Rs. 2.19 Lakh crore for the FY 2026-27 under capital head at BE stage, further augmenting the efforts in modernising and strengthening our Armed Forces.