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Defence Year-Ender 2025: 16-18% Surge to ₹1.51L Cr, Revised DAP 2025, Reforms & Targets Ahead
Thursday, 1 January, 2026

With continued reforms and strong production growth, India's defence industry is at a turning point as 2025 comes to an end. Businessline's Dalip Singh and Rajinder Singh Bhatia, President SIDM, and Chairman Kalyani Strategic Systems Ltd, discuss major developments influencing the defence industry in this exclusive Year-Ender podcast. According to Bhatia, total defence production increased by 16–18% to ₹1.51 lakh crores, and the private sector in India made a substantial contribution to the country's readiness, as demonstrated by top-notch systems used in operations like Operation Sindhoor. Expectations for announcement of revised DAP 2025 and last year’s reforms like the Defence Production Manual (DPM) opening ammunition to private players are discussed, along with other goals like necessity for theatre commands. With capital acquisitions up over 20% and budget growth of 9–10%+ anticipated for 2026–2027, the sector aims to produce ₹3 lakh crores by 2029–2030.