By A Correspondent
New Delhi: As the ‘Year of Reforms 2025’ draws to a close, the Ministry of Defence (MoD) has reported substantial progress in implementing wide-ranging reforms to strengthen India’s defence preparedness, enhance jointness among the Armed Forces, promote self-reliance, and improve welfare delivery.
Led by Defence Minister Rajnath Singh, the reform push reflects a whole-of-government approach to building a modern, integrated, and future-ready defence ecosystem, the MoD said in a Press Information Bureau (PIB) statement on January 1, 2026.
At the core of the reform drive has been accelerated modernisation through indigenisation. Since January 2025, the Defence Acquisition Council has approved capital acquisition proposals worth over INR 384,000 crore to boost operational readiness.
In the current financial year 2025–26, up to December 2025, the MoD has signed capital contracts worth INR 182,000 crore.
Capital expenditure has reached nearly 80% — about INR 120,000 crore — by December, while overall capital spending, including infrastructure, land, and Research & Development, has touched 76%.
A strong thrust has been placed on enabling the defence industry and innovation ecosystem. Private sector participation has been expanded by streamlining defence manufacturing licences, mapping MSME capabilities, and preparing market intelligence reports to improve demand-supply matching.
Testing and trial facilities are being opened to private players, while 25% of defence research grants are being earmarked for industry, academia, and MSMEs to spur innovation and collaboration.
Major acquisition and procurement reforms have also been rolled out to reduce timelines and enhance transparency.
These include simplification of the iDEX manual, rationalisation of defence export permissions, revamping of the Defence EXIM portal, simplification of technology transfer policies, and greater decentralisation through revised Delegation of Financial Powers.
The Defence Procurement Manual 2025 came into effect from November 1, 2025.
On the policy and international front, the MoD is reviewing the Defence Acquisition Procedure 2020, encouraging foreign direct investment in defence, deepening engagement with friendly countries, advancing defence lines of credit such as ‘Bharat Maitri Shakti’, and rationalising restricted distance norms around defence establishments.
Efforts to enhance jointness and future preparedness have gained momentum with the establishment of a Joint Operations Control Centre, promulgation of Vision 2047 for the Armed Forces, creation of a Future Operations Analysis Group, and finalisation of the Integrated Capability Development Plan.
These initiatives proved their value during the planning and execution of Operation Sindoor.
Veterans’ welfare has been a key pillar of the reforms. Under ECHS, doorstep delivery of medicines for infirm veterans aged 70 and above has been introduced nationwide, authorised local chemist limits doubled, eSeHAT telemedicine rolled out, and AYUSH treatment integrated.
Welfare grants for ex-servicemen and their dependents have also been enhanced.
Meanwhile, India’s digital pension platform SPARSH has onboarded 3,169,000 defence pensioners, with over 607,000 discrepant cases resolved without affecting entitlements.
The sustained reform momentum during the Year of Reforms 2025 underscores the MoD’s commitment to continuous transformation, reinforcing India’s defence preparedness, institutional efficiency, and long-term strategic autonomy, the PIB statement from the MoD said.
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