The Ministry of Defence has recorded significant progress in implementing wide-ranging reforms during the ‘Year of Reforms 2025’, aimed at strengthening jointness, enhancing defence preparedness, promoting self-reliance and improving welfare delivery mechanisms.
According to an official statement, the reforms were undertaken under the leadership of Raksha Mantri Rajnath Singh and reflect a whole-of-government approach towards building a modern, integrated and future-ready defence ecosystem.
As part of modernisation efforts, the Defence Acquisition Council approved capital acquisition proposals worth over Rs 3.84 lakh crore since January 2025, with a strong focus on indigenisation. During the financial year 2025–26, up to December 2025, capital contracts worth Rs 1.82 lakh crore were signed for the modernisation of the Armed Forces.
The Ministry achieved around 80 per cent expenditure under the Capital Acquisition Budget—amounting to approximately Rs 1.2 lakh crore—by the end of December 2025. Overall capital expenditure, including infrastructure, land and research and development, reached nearly 76 per cent.
To strengthen the defence industrial ecosystem and secure supply chains, private sector participation was enhanced through streamlined defence manufacturing licences, mapping of MSME competencies and preparation of market intelligence reports. Defence testing and trial infrastructure was also opened to the private sector, while 25 per cent of defence research grants were earmarked for private industry, academic institutions and MSMEs to encourage innovation.
Several acquisition and procurement reforms were undertaken to reduce timelines, including simplification of the iDEX manual, rationalisation of defence export permissions, revamping of the Defence EXIM portal, simplification of technology transfer policies and decentralisation through revised financial delegation and procurement manuals. The Defence Procurement Manual 2025 came into effect on November 1, 2025.
In the area of defence policy and international engagement, the review of Defence Acquisition Procedure 2020 is underway, along with initiatives to encourage foreign direct investment, strengthen cooperation with friendly countries, expand defence lines of credit such as Bharat Maitri Shakti, and rationalise restricted distance norms near defence establishments.
The Ministry also advanced reforms in defence production and quality enhancement, including the formation of an export promotion body, implementation of Quality Assurance 4.0 and Industry 4.0 in defence public sector undertakings, and steps towards establishing a National Integrated Test Laboratory for defence platforms.
To enhance jointness and future preparedness, initiatives such as the establishment of a Joint Operations Control Centre, promulgation of Vision 2047 for the Armed Forces, creation of a Future Operations Analysis Group, promotion of joint training programmes and finalisation of the Integrated Capability Development Plan progressed across various stages. These efforts contributed to planning and execution during Operation Sindoor.
Operational integration measures included deployment of a tri-service geographical information system, harmonisation of policies and standard operating procedures, expansion of women’s roles in combat and leadership positions, promotion of military tourism, and preparation of a long-term roadmap for operational infrastructure and accommodation.
Significant reforms were also undertaken for veterans’ welfare. These included doorstep delivery of medicines for elderly ex-servicemen under ECHS, expansion of tele-medicine services, enhancement of authorised local chemist limits, introduction of AYUSH treatment, stress management facilities, upgradation and expansion of ECHS polyclinics, and increased welfare grants for ex-servicemen and their dependents.
Under the SPARSH pension portal, over 31.69 lakh defence pensioners have been onboarded. Of the 6.43 lakh discrepant cases migrated from earlier systems, more than 6.07 lakh have been resolved without impacting pension entitlements.
