Visitors at the exhibition organized by Indian Defense Manufacturers in Jaipur. File | Photo Credit: PTI
For the third consecutive year, the benefits of private manufacturers have increased to general defense production in India.
According to data from the Ministry of Defense Production, the private sector contributed 33,979 Crore (22.56%) to the total defense production of 1.50 590 Crore in the financial year 2024-25. This means the highest share of the participation of the private sector since 2016–17, when it was 19%.
At FY 2024-25, the public defense sectors (PCB) were 57.50%of total defense production, while Indian Ordnance factories contributed 14.49%and 5.4%.
Since the opening of the defense sector to private players in 2016–17, the contribution of private companies has been between 19% and 20%. In the years 2022-23 and 20.93% in 2023-24 was 19.39%, reflecting a permanent ascending trend.
However, a greater share in production still comes from the Ordnance Factory Board, PCB, other dogs and common companies.
According to the Ministry of Defense, the Indian defense budget witnessed a permanent increase-2.53 ₹ Lakh Crore in 2013–14 to 6.81 Lakh Crore in 2025-26. In the years 2024-25, the country reached its highest defensive production of 1.50 Lakh Crore, more than three times Crore 46 429 GBP recorded in 2014–2015.
34 times the growth of exports
Indian exports of defense also increased-Z 686 GBP Crore in 2013–2014 to 23,622 Crore in 2024-25, which is a 34-fold increase that underlines the government pressure on the independent and globally competing defense industry, the ministry said. Today India exports defense equipment to more than 100 countries, while the US, France and Armenia appear as the first three destinations in 2023-24.
In order to support the participation of the private sector, the government has introduced several programs, including innovation for Excellence defense (IDEX), the defense infrastructure scheme for defense (DTIS), the development of innovative technologies with IDEX (ADITI) and technology development (TDF). The aim of initiatives such as Make in India and positive indigenization lists will increase innovation, indigenous production and independence in the defensive sector.
Published – August 19, 2025 9:26
