Defence output and exports scale new highs but fall short of targets

India’s defence sector has seen steady growth in both production and exports over the past decade, reflecting increased industrial capacity and a growing role for the private sector. The production rose 1.7 times since FY17, with the private sector maintaining a consistent share, reflecting gradual but stable progress in domestic manufacturing. Meanwhile, exports have expanded over 15 times, indicating a strategic shift. However, shortfalls in meeting annual targets for both production and exports highlight challenges in scaling up output to reach ₹3 trillion in production and ₹50,000 crore in exports by FY29