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Defence ministry orders hit ₹2.1 trn in FY25, 92% awarded to local firms

India's defence sector received record orders as FY25 ends, with domestic firms securing 92 per cent of contracts; FY26 outlook brightens with reforms and exports push

defence sector, defence, army, Armed forces

Domestic procurement share has jumped from 54 per cent pre-pandemic to 75 per cent now.

BS Reporter New Delhi

1 min read Last Updated : May 05 2025 | 1:41 PM IST

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The Ministry of Defence iked 193 contracts amounting to ₹2.1 trillion in FY25, which is the highest ever. Of this, ₹1.6 trillion went to domestic companies. Interestingly, the last two months of the year alone accounted for ₹1 trillion in orders.

Approvals for capital procurement in March alone touched ₹54,000 crore, including BrahMos missiles, Netra early warning aircraft, upgraded tank engines, and naval weapon systems.

Domestic procurement share has jumped from 54 per cent pre-pandemic to 75 per cent now. Exports in defence sector have also risen, and India is targeting to push exports to ₹50,000 crore by FY29 from ₹21,000 crore in FY24.

Read the full story by Ram Prasad Sahu here: India’s defence stocks rally on FY25 order surge, FY26 outlook