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SSC Foundation Arjuna - 19 Offline Cum Online Batch Lucknow Branch
18 August, 2025
India’s Annual Defence Production – All-Time High in FY 2024-25
Tue 12 Aug, 2025
Reference:
- In the financial year 2024-25, India’s annual defence production reached an all-time high of ₹1,50,590 crore (approximately 17.20 billion USD).
Key Points:
- This achievement represents a robust 18% increase compared to ₹1.27 lakh crore in the previous financial year, and a remarkable 90% growth since FY 2019-20 (₹79,071 crore).
- This milestone reflects significant enhancement in the country’s defence manufacturing capabilities under the Atmanirbhar Bharat initiative.
Contribution to Growth:
-
- Defence Public Sector Undertakings (DPSUs) and other public sector enterprises contributed approximately 77% to the total production.
- Private sector contribution: 23%
- Private sector share: 21% in FY 2023-24 increased to 23% in FY 2024-25.
- Both public and private sectors have shown consistent year-on-year growth over the last decade, driven by far-reaching policy reforms, ease of doing business, and focused emphasis on indigenization.
- In FY 2024-25, DPSU and private sector production increased by 16% and 28%, respectively.
Defence Exports:
- FY 2024-25: ₹23,622 crore, the highest ever
- Growth: ₹2,539 crore (12.04%) increase from ₹21,083 crore in FY 2023-24
Reasons for Growth:
- Policy reforms: Significant changes in the past decade
- Ease of doing business: Facilitated increased investment and production in defence sector
- Focus on indigenization: Prioritizing domestic manufacturing under the Atmanirbhar Bharat initiative
- Enhanced export capacity: Rising demand for Indian defence products in foreign markets
Note: India aims to achieve defence production of Rs 3 lakh crore and defence exports of Rs 50,000 crore by 2029.
Major Defense Production Related Schemes of Government of India:
| Scheme/Initiative Name | Launch Year | Brief Description | Key Objective |
| Make in India | 2014 | A flagship initiative promoting indigenization in the manufacturing sector, especially defense production. | Reduce import dependency, generate employment, and enhance domestic defense production capacity. |
| Atmanirbhar Bharat Abhiyan | 2020 | A comprehensive plan to make India economically and technologically self-reliant, prioritizing the defense sector. | Promote import substitution, develop indigenous technology, and boost defense exports. |
| Innovations for Defence Excellence (iDEX) | 2018 | A scheme to support startups and MSMEs for innovation and new technology development in the defense sector. | Encourage innovation, prototype development, and integration of modern defense technologies. |
| Defence Testing Infrastructure Scheme (DTIS) | 2020 | Establishment of state-of-the-art infrastructure for defense equipment testing, including private sector participation. | Strengthen domestic testing capabilities and facilitate production certification. |
| Technology Development Fund (TDF) | 2016 | A DRDO-operated scheme providing financial assistance to industry for defense technology development. | Promote indigenous R&D, prototype manufacturing, and bridge technological gaps. |
| Defence Industrial Corridors | 2018 | Development of corridors in Uttar Pradesh and Tamil Nadu to promote defense manufacturing. | Attract investment and strengthen local manufacturing capabilities. |
| Positive Indigenisation Lists Since | 2020 | Release of lists (5 lists, 5500+ items) of restricted imports to encourage indigenous production. | Reduce import dependency and promote domestic defense industry. |
| Defence Acquisition Procedure (DAP) 2020 | 2020 | Reform of defense procurement process giving priority to indigenous manufacturing. | Increase private sector participation, simplify and make procurement process transparent. |
| Defence Production and Export Promotion Policy (DPEPP) 2020 | 2020 | Policy to boost defense production and exports with a target of ₹1.75 lakh crore production and ₹35,000 crore exports by 2025. | Achieve self-reliance in defense and increase global exports. |
Atmanirbhar Bharat (Self-Reliant India)
- Announcement: 12 May 2020
- Announced by: Prime Minister Narendra Modi
- Background: Amid disruptions in global supply chains during the COVID-19 pandemic
Main Objectives:
- To make India self-reliant and self-confident
- Strengthen local manufacturing and supply chains
- Increase exports and reduce dependence on imports
- Promote innovation, startups, and technology
- Accelerate employment generation and rural-urban development
Five Key Pillars:
- Economy – Driving growth
- Infrastructure – Foundation for the future
- Technology-driven System
- Demography – India’s strength
- Demand – Boosting domestic consumption
Focus Areas:
- Industry and Manufacturing (Make in India)
- Agricultural reforms
- Health and pharmaceutical sector
- MSME sector
- Digital India and startups
- Defence, space, and energy sectors