India's defence sector is experiencing unprecedented growth, with the government announcing a remarkable 56-fold increase in defence exports over the past twelve years. Exports have escalated from ₹686 crore in the fiscal year 2013–14 to a staggering ₹38,424 crore in FY2025–26, now reaching over 80 countries worldwide.
This significant surge in exports is complemented by a record-breaking domestic defence production, which hit ₹1.78 lakh crore in 2025–26. Public sector entities contributed 76% of this production, while the private sector accounted for 24%.
Key Players in Focus Amidst Growth
Several defence sector firms are under intense market focus following these announcements. Companies such as Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Mazagon Dock Shipbuilders, Bharat Dynamics, Cochin Shipyard, Garden Reach Shipbuilders & Engineers (GRSE), and BEML are among those seeing increased investor attention. Other notable firms include Solar Industries India, Data Patterns (India), Zen Technologies, Paras Defence and Space Technologies, MTAR Technologies, and Astra Microwave Products.
Public and Private Sector Contributions to Exports
The export figures reveal a strong contribution from both public and private enterprises. In FY2025–26, private sector firms were responsible for ₹17,353 crore, or 45.16%, of defence exports. Defence Public Sector Undertakings (DPSUs) led slightly with ₹21,071 crore, accounting for 54.84% of the total.
Ambitious Future Targets
Looking ahead, the government has set ambitious targets for the defence industry. By 2029, India aims to achieve an annual defence production worth ₹3 lakh crore and boost exports to ₹50,000 crore. These goals underscore the nation's commitment to strengthening its indigenous defence capabilities and expanding its global footprint in defence manufacturing.