Context
• As India’s defence production and exports have hit record highs in the past financial year, contributions from private defence companies and MSMEs have increased. • The stocks of various defence companies rose significantly in the week of Operation Sindoor and even beat the performance of the largest 50 companies on the National Stock Exchange.
• While India continues to import a large share of its defence equipment and weapons, government data shows that domestic manufacturing has picked up.
• India’s defence exports have picked up and exceeded ₹20,000 crore in the past two financial years.
• India’s defence exports include small arms, protective gear, and artillery. The export target set for the current fiscal is ₹30,000 crore.
• While public sector companies account for a majority of the total defence production, private companies are steadily carving out a larger share for themselves.
• They accounted for about 20% of the total defence production in FY17; this continued till FY24. In FY25, their share has increased to almost 24%.
IAS-2026 - OPTIONAL / GEOGRAPHY / PUBLIC ADMINISTRATION / SOCIOLOGY / ANTHROPOLOGY / ORIENTATION ON 03 & 04-10-2025 
