Hindustan Aeronautics, Bharat Dynamics, Cochin Shipyard: Big day for defence firms today; check details

India’s annual defence production has crossed the ₹1.5 lakh crore mark for the first time, recording a sharp increase over previous years. Defence Minister Rajnath Singh described the achievement as a clear sign of the country’s strengthening defence industrial base.

The 2024–25 figure represents an 18% increase over the previous fiscal year’s ₹1.2 lakh crore and a 90% surge from ₹79,071 crore in 2019–20. Officials credited the milestone to the combined efforts of the Ministry of Defence’s Department of Defence Production, defence public sector undertakings (PSUs), other state-owned manufacturers, and private industry.

Last week, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved a series of capital acquisition proposals worth approximately ₹67,000 crore to augment the combat capabilities of the armed forces across land, sea and air.

The approvals include new equipment and upgrades for the Indian Army, Navy, and Air Force, as well as unmanned systems and maintenance initiatives across services.

In June 2025, a report suggested that India's defence budget could rise a little under fivefold to ₹31.7 trillion in 2047 from ₹6.81 trillion in 2025-2026 (FY26), with defence production increasing over sixfold to ₹8.8 trillion from ₹1.46 trillion in FY25.

The report -- titled Atmanirbhar, Agrani, and Atulya Bharat 2047, -- unveiled at the CII Annual Business Summit in New Delhi, also estimates India's defence exports to rise to Rs 2.8 trillion in 2047, up nearly twelvefold from ₹24,000 crore (₹240 billion) in FY25.

The report was prepared by the Confederation of Indian Industry and KPMG India.

How shares are faring

In the early trade, shares of HAL were trading 1.23% lower at ₹4,385.10 apiece on the NSE. Bharat Dynamics was trading nearly 2% lower at ₹1,484.50, while Cochin Shipyard was trading flat at ₹1,662.40.