India’s Defence Production Reaches Record ₹1.51 Lakh Crore in FY 2024-25, Boosting Aatmanirbhar Bharat

India’s Defence Production Hits Record ₹1.51 Lakh Crore in FY 2024‑25 — Who Benefits and How

India’s defence manufacturing sector has reached a historic milestone, with total production hitting ₹1,50,590 crore in FY 2024‑25. That’s an impressive 18% year‑on‑year growth from ₹1.27 lakh crore in the previous year and a massive 90% jump from FY 2019‑20 levels of ₹79,071 crore.

This achievement mirrors the success of Aatmanirbhar Bharat and the government’s strategic push toward self‑reliance in defence production, backed by strong participation from both public‑sector giants and private manufacturers.

Key Production and Contribution Data

• Defence Public Sector Undertakings (DPSUs) & other PSUs: 77% share of total production.

• Private sector: 23% share (up from 21% last year).

• Year‑on‑year output growth: DPSUs – 16%, Private sector – 28%.

• Defence exports: ₹23,622 crore in FY 2024‑25 — up 12.04% from ₹21,083 crore in FY 2023‑24.

Sector‑Level Impact & Key Beneficiary Companies

1. Supportive Policy Environment

Reforms under Aatmanirbhar Bharat and “Make in India” have turbo‑charged indigenous production capacity.
Likely Beneficiaries:

• Hindustan Aeronautics Ltd (HAL) – aircraft & helicopters.

• Bharat Electronics Ltd (BEL) – radars, communication, electronic warfare.

• Bharat Dynamics Ltd (BDL) – guided missiles, ammunition.

2. Public–Private Collaboration

Partnerships between DPSUs and private companies are speeding up technology integration and delivery timelines.
Likely Beneficiaries:

• Tata Advanced Systems – aerospace, UAVs.

• Larsen & Toubro (L&T) Defence – naval systems, artillery, infrastructure.

• Mahindra Defence Systems – armoured vehicles, maritime surveillance.

3. Skill & Technology Upgrades

Industry is investing in AI, robotics, additive manufacturing, and skilled manpower.
Likely Beneficiaries:

• Adani Defence & Aerospace – drones, aircraft components.

• Kalyani Group (Bharat Forge Defence) – artillery and armoured systems.

4. Export Promotion & Global Competitiveness

Focus on defence exports is opening markets in Southeast Asia, Africa, and the Middle East.
Likely Beneficiaries:

• Solar Industries India Ltd – ammunition, explosives exports.

• IdeaForge – tactical drones for global customers.

5. R&D & Innovation Push

Focus is on cutting‑edge systems in communication, avionics, and smart weaponry.
Likely Beneficiaries:

• Alpha Design Technologies – avionics, communication systems.

• Data Patterns (India) Ltd – electronic systems for aerospace & defence.

Company‑Level Impact — Strategic Gains

1. Capacity Expansion & Modernisation

Growing order books require expanded manufacturing lines.
Beneficiaries: HAL, BEL, L&T Defence, Tata Advanced Systems.

2. Partnerships & Technology Transfers

Collaborations with global defence players enable access to advanced tech.
Beneficiaries: Adani Defence, Reliance Naval & Engineering Ltd, Mahindra Defence.

3. Quality & Compliance Excellence

Meeting stringent defence procurement standards ensures long‑term contracts.
Beneficiaries: BDL, Bharat Forge Defence, BEL.

4. Sustainable & Cost‑Efficient Production

Competitive pricing without compromising quality aids in winning global tenders.
Beneficiaries: Solar Industries, Data Patterns, Hindustan Shipyard Ltd.

5. Innovation & Agility

Fast adaptation to new warfare domains such as unmanned systems and smart munitions.
Beneficiaries: IdeaForge, Tonbo Imaging, Alpha Design Technologies.

Outlook

With the government maintaining its push for indigenisation, expanding defence exports, and promoting public‑private partnerships, India’s defence production sector is primed for sustained double‑digit growth in the coming years. Key companies named above stand to benefit through higher order inflows, technology advancements, and global defence market penetration.

Disclaimer

This blog is based on official data released by the Press Information Bureau (PIB), Ministry of Defence on 9 August 2025, supplemented by market insights on leading Indian defence companies. It is for informational purposes only and should not be treated as investment advice.