India’s defence establishment underwent one of its most consequential transformations in recent years as the Ministry of Defence (MoD) concluded the ‘Year of Reforms 2025’, recording sweeping gains in military preparedness, jointness, and self-reliance.
Under the leadership of Defence Minister Rajnath Singh, the reform drive delivered tangible outcomes — from massive acquisition approvals and faster procurement to deeper private sector participation and improved welfare for veterans — aimed at building a future-ready Armed Forces.
What was the ₹3.84 lakh crore capability push?
At the heart of the reforms was a strong push for modernisation through indigenisation. Since January 2025, the Defence Acquisition Council approved capital acquisition proposals worth over ₹3.84 lakh crore to enhance operational readiness.
In FY 2025–26 alone, up to December 2025, the MoD signed capital contracts amounting to ₹1.82 lakh crore. Capital acquisition spending reached nearly 80%, or approximately ₹1.2 lakh crore, by the end of December, while overall capital expenditure, including infrastructure, land, and R&D, reached 76%, reflecting accelerated execution.
How was the defence industrial base boosted?
The government also focused on energising India’s defence industrial base. Measures were taken to streamline defence manufacturing licences, map MSME capabilities, and generate market intelligence reports to improve procurement efficiency.
Testing and trial facilities were opened to private players, while 25% of defence research grants were allocated to private industry, academia, and MSMEs to drive innovation and secure supply chains.
What were the defence procurement reforms in 2025?
Significant acquisition and procurement reforms were implemented to cut delays and decentralise decision-making.
These included simplification of the iDEX manual, rationalisation of defence export permissions, revamping of the Defence EXIM portal, easing of technology transfer policies, and revised Delegation of Financial Powers.
The Defence Procurement Manual 2025 was operationalised from November 1, 2025, marking a key structural shift.
How were the policy reforms aiding the defence sector?
On the policy and diplomatic front, work progressed on revising the Defence Acquisition Procedure 2020, promoting foreign direct investment in defence, strengthening engagement with friendly countries, advancing defence Lines of Credit such as Bharat Maitri Shakti, and rationalising restricted distance norms near defence establishments.
What were the operational reforms that helped?
Jointness and future preparedness emerged as defining themes. 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 and finalisation of the Integrated Capability Development Plan collectively enhanced operational integration. These reforms demonstrated their value during the planning and execution of Operation Sindoor.
How were the veterans and personnel taken care of?
Veterans’ welfare saw parallel gains. Doorstep delivery of medicines for infirm ex-servicemen aged 70 and above was rolled out nationwide under ECHS, local chemist limits were doubled, telemedicine through eSeHAT expanded, AYUSH treatment introduced, and welfare grants enhanced.
Meanwhile, the SPARSH pension portal onboarded 31.69 lakh defence pensioners, resolving over 6.07 lakh legacy discrepancies without impacting entitlements.
Together, the reforms of 2025 marked a decisive step in India’s long-term defence transformation—strengthening preparedness today while laying the foundation for a modern, integrated and self-reliant military for decades ahead.