Datanomics: Private-sector collaboration to drive self-reliance in defence

Defence Minister Rajnath Singh recently said that India's annual defence production reached an all-time high of ₹1.46 trillion in FY25, nearly doubling from ₹0.74 trillion in FY17

With the success of Indian defence products in Operation Sindoor, India aims to showcase the export potential and combat readiness of its indigenous arms globally. Recently, Dassault Aviation and Tata Advanced Systems Ltd (TASL) signed four production transfer agreements to manufacture Rafale fighter jet fuselages in India, marking the first time this will be done outside France. Such private-sector collaboration is expected to boost India’s self-reliance in the sector and support the ‘Make in India’ initiative. 

Steady climb in defence production

Defence Minister Rajnath Singh has said India’s annual defence production nearly doubled to ₹1.46 trillion in FY25 from ₹74,000 crore in FY17. While the share of private players increased to 22 per cent in FY25, that of public-sector undertakings fell slightly to 78 per cent. 

 

Gaining momentum in exports

India’s defence exports grew manifold from ₹1,522 crore in FY17 to ₹23,622 crore in FY25. The share of the private sector, which was just 12.75 per cent in FY17, jumped to 91.32 per cent in FY19. However, this share declined in FY25 to 64.49 per cent from 72.14 per cent in FY24.