India's Defence Manufacturing Hits Historic Milestone: Production Soars to ₹1.78 Lakh Crore in FY26, Boosting Sector Stocks

India’s defence production reached a historic high of ₹1.78 lakh crore in FY26, marking a 15.6% rise from the previous year and a massive 110% jump since FY21. The surge reflects strong progress under the Aatmanirbhar Bharat initiative, with private sector contribution hitting a record 24%. The announcement triggered a sharp rally in defence stocks on Wednesday. $PARAS e surged up to 12%, while HAL, Bharat Dynamics, Mazagon Dock, and $BEL also gained between 3-8%. Defence exports also touched a new high of ₹38,424 crore. The milestone strengthens India’s push for self-reliance and positions the sector for sustained growth.