The Ministry of Defence recorded significant progress across a wide spectrum of reforms during the Year of Reforms 2025, marking a decisive step towards building a modern, integrated and future-ready defence ecosystem. The reform agenda focused on strengthening jointness among the Armed Forces, enhancing defence preparedness, promoting self-reliance, streamlining procurement, and improving welfare delivery for serving personnel and veterans.
During the year, capital acquisition approvals worth over ₹3.84 lakh crore were accorded to enhance defence readiness, with a strong emphasis on modernisation through indigenisation. In the financial year 2025–26, capital contracts amounting to ₹1.82 lakh crore were signed up to December 2025, reinforcing the momentum of capability enhancement across the Armed Forces. Capital expenditure reached about 80 per cent of the acquisition budget by the end of December, translating to approximately ₹1.2 lakh crore spent on modernisation. Overall capital expenditure, including infrastructure, land and research and development, touched nearly 76 per cent of the allocated outlay.
A major thrust of the reform drive was on strengthening the defence industrial ecosystem and innovation. Private sector participation was expanded through streamlined defence manufacturing licences, mapping of MSME competencies, and preparation of market intelligence reports to improve demand–supply alignment. Testing and trial facilities were opened up to private players, while 25 per cent of defence research grants were earmarked for private industry, academic institutions and MSMEs to foster innovation and collaboration.
Procurement and acquisition processes were simplified to reduce timelines and improve efficiency. Key measures included 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 delegation of financial powers and updated procurement manuals. The Defence Procurement Manual 2025 came into effect from November 1, 2025, providing a more agile framework for acquisitions.
On the policy and international engagement front, work progressed on reviewing the Defence Acquisition Procedure 2020, encouraging foreign direct investment in defence manufacturing, enhancing cooperation with friendly countries, expanding defence lines of credit including Bharat Maitri Shakti, and rationalising restricted distance norms near defence establishments.
Defence production and quality enhancement also received renewed focus. An export promotion body was set up, Quality Assurance 4.0 and Industry 4.0 practices were advanced in defence public sector undertakings, and work began on establishing a National Integrated Test Laboratory for defence platforms.
Significant steps were taken to strengthen jointness and future preparedness, including 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 progress towards finalising an Integrated Capability Development Plan. These initiatives proved their value during the planning and execution of Operation Sindoor.
Operational integration was further strengthened through 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.
Veterans’ welfare reforms formed a critical pillar of the reform agenda. Doorstep delivery of medicines for ex-servicemen aged 70 years and above with infirmity was introduced nationwide under the ECHS. Limits for authorised local chemists were doubled, telemedicine consultations rolled out through eSeHAT, AYUSH treatments included, stress management facilities created, drug lists expanded, and new polyclinics sanctioned. Welfare grants for ex-servicemen and their dependents, including penury, education and marriage grants, were also enhanced.
The SPARSH pension portal emerged as a major digital milestone, with 31.69 lakh defence pensioners onboarded. Of the 6.43 lakh discrepant cases migrated from legacy systems, over 6.07 lakh were normalised without affecting pensioners’ entitlements, reinforcing trust in digital pension delivery.
The sustained reform momentum of 2025 has strengthened defence preparedness, institutional efficiency and self-reliance. These measures form part of a continuous, long-term effort to build a resilient defence ecosystem capable of safeguarding national security interests in the decades ahead.
