**Executive Summary**
The Ministry of Defence (MoD) reports significant progress in implementing wide-ranging reforms during the ‘Year of Reforms 2025’, aimed at strengthening defence preparedness and promoting self-reliance. Key achievements include acquisition approvals, contract signings, and enhanced private sector participation. The Defence Procurement Manual 2025 was implemented on November 01, 2025.
**Key Points / Main Content**
* **Acquisition & Expenditure**
* Capital acquisition proposals worth over Rs 3.84 lakh crore approved since January 2025.
* Capital contracts worth Rs 1.82 lakh crore signed by the end of December 2025.
* 80% (Approx. Rs 1.2 lakh crore) expenditure under Capital Acquisition Budget by the end of December 2025.
* **Defence Industry & Innovation**
* Increased private sector participation to promote indigenisation.
* Streamlined defence manufacturing licenses and enhanced demand-supply analysis.
* Shared testing infrastructure with the private sector.
* Allocated 25% of defence research grants to the private sector and academic institutions.
* **Acquisition & Procurement Reforms**
* Procurement processes streamlined to reduce timelines.
* The Defence Procurement Manual 2025 implemented w.e.f. November 01, 2025.
* **Defence Policy & International Engagement**
* Review and revision of Defence Acquisition Procedure 2020.
* Encouragement of Foreign Direct Investment in defence.
* Enhanced engagement with friendly countries.
* **Defence Production & Quality Enhancement**
* Formation of an Export Promotion Body.
* Implementation of Quality Assurance 4.0 & Industry 4.0 in DPSUs.
* **Jointness & Future Preparedness**
* Establishment of Joint Operations Control Centre.
* Promulgation of Vision 2047 for the Armed Forces.
* **Operational Integration & Capability Enablement**
* Deployment of Tri-Service Geographical Information System.
* Review and Harmonisation of policies, SOPs and Tactics, Techniques & Procedures for Tri-service uniformity.
* **Veterans' Welfare Reforms**
* Improved medical cover delivery for veterans under ECHS.
* Pan-India doorstep delivery of medicines to 70 year plus Ex-servicemen (ESM) introduced.
* **SPARSH Pension Portal**
* 31.69 lakh defence pensioners onboarded on SPARSH.
* 6.07 lakh discrepant cases normalised without affecting pensioners' entitlements.
**Impact Analysis**
**Defence Industry (Private Sector)**
* **Impact:** Increased opportunities for participation in defence manufacturing, R&D, and supply chains.
* **Action Required:** Engage with the MoD to explore collaboration opportunities, leverage shared testing infrastructure, and apply for research grants.
**Armed Forces Personnel**
* **Impact:** Modernisation of equipment, enhanced jointness and preparedness, and improved welfare measures.
* **Action Required:** Adapt to new technologies, participate in joint training programs, and utilise the benefits of improved welfare schemes.
**Veterans and Dependents**
* **Impact:** Improved access to medical care and pension benefits through ECHS and SPARSH.
* **Action Required:** Register on the SPARSH portal, utilise eSeHAT tele-medicine consultation, and avail of pan-India doorstep delivery of medicines if eligible.
Key Entities Referenced
Ministry of Defence: The primary agency implementing the 'Year of Reforms 2025' and responsible for defence-related activities.
Year of Reforms 2025: A Ministry of Defence initiative aimed at implementing wide-ranging reforms in the defense sector.
Defence Acquisition Procedure 2020: A policy document being reviewed and revised as part of the Defence Policy & International Engagement reforms.
Defence Acquisition Council: The council that approves capital acquisition proposals for the defence sector.
Defence Procurement Manual 2025: A manual related to procurement processes implemented by the Ministry of Defence.
Ministry of Defence
Year of Reforms 2025: MoD records significant
progress in implementing wide-ranging reforms
प्रव तथ: 01 JAN 2026 5:51PM by PIB Delhi
As the curtains came down on ‘Year of Reforms 2025’, Ministry of Defence, under the leadership of
Raksha Mantri Shri Rajnath Singh, has recorded significant progress in implementing wide-ranging
reforms aimed at strengthening jointness, enhancing defence preparedness, promoting self-reliance and
improving welfare delivery mechanisms. These reforms, undertaken across the Ministry, reflect a whole-
of-government approach towards building a modern, integrated and future-ready defence ecosystem.
Acquisition Approvals: Defence Acquisition Council approved capital acquisition proposals worth
a total of cost of over Rs 3.84 lakh crore since January 2025 to enhance the country’s defence
readiness, with focus on modernisation through indigenisation.
Contracts Signed: In the Financial Year 2025-26 till the end of December 2025, Ministry of
Defence has signed capital contracts amounting to Rs 1.82 lakh crore for the modernisation of the
Armed Forces.
Expenditure: Ministry of Defence has achieved 80% (Approx. Rs 1.2 lakh crore) expenditure
under Capital Acquisition Budget by the end of December 2025. The allocation under this is spent
on modernisation of the Armed Forces. The overall capital expenditure of MoD has also reached
upto 76% which includes expenditure on Infrastructure, land, R&D etc in addition to capital
acquisition.
Defence Industry & Innovation Enablement: To promote greater indigenisation in defence and
secure supply chains, private sector participation has been increased. This includes streamlining
defence manufacturing licenses, mapping the competencies of MSMEs, and preparing Market
Intelligence Reports to enhance demand-supply analysis in defence procurement. Additionally,
testing and trial infrastructure lab facilities are being shared with the private sector. 25% of defence
research grants are also being allocated to them along with academic institutions and MSMEs to
encourage innovation & strengthen collaboration in the defence sector.
Acquisition & Procurement Reforms: Procurement processes have been streamlined to reduce
timelines, including Simplification of the iDEX manual, Rationalisation of defence export
permissions, Revamping of the Defence EXIM Portal, Simplification of Technology Transfer policy
and Decentralisation through revised Delegation of Financial Powers and Procurement Manuals
(Defence Procurement Manual 2025, implemented w.e.f. November 01, 2025).
Defence Policy & International Engagement: Review and revision of Defence Acquisition
Procedure 2020, Encouragement of Foreign Direct Investment in defence, Enhanced engagement
with friendly countries, Defence Lines of Credit including Bharat Maitri Shakti, and Rationalisation
of restricted distance norms near defence establishments are under progress.
Defence Production & Quality Enhancement: Formation of an Export Promotion Body,
Implementation of Quality Assurance 4.0 & Industry 4.0 in DPSUs and Establishment of a National
Integrated Test Laboratory for defence platforms are being advanced.Jointness & Future Preparedness: Establishment of 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 are under various stages of implementation. Steps taken in this direction bore
fruit during the planning and execution of Operation Sindoor.
Operational Integration & Capability Enablement: Deployment of Tri-Service Geographical
Information System, Review and Harmonisation of policies, SOPs and Tactics, Techniques &
Procedures for Tri-service uniformity, 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 have been completed.
Veterans’ Welfare Reforms: To improve delivery of medical cover for veterans and their
dependents under ECHS, pan-India doorstep delivery of medicines to 70 year plus Ex-servicemen
(ESM) with infirmity introduced, authorised local chemist limits doubled, eSeHAT tele-medicine
consultation introduced, pan-India rollout underway; AYUSH treatment at ECHS introduced, Stress
management facilities created, Common drug list enhanced, Upgradation of some ECHS
polyclinics, Creation of some new polyclinics underway. Enhancement of welfare grants to ESM
and their dependents including Penury, Education & Marriage grants implemented.
SPARSH Pension Portal: 31.69 lakh defence pensioners have been onboarded on SPARSH, India’s
largest digital pension platform. Out of 6.43 lakh discrepant cases migrated from previous systems,
6.07 lakh have been normalised without affecting pensioners’ entitlements.
The sustained reform momentum during the ‘Year of Reforms 2025’ has strengthened India’s defence
preparedness and institutional efficiency. These reforms are not isolated initiatives, but part of a
continuous process to build a modern, integrated and self-reliant defence ecosystem capable of
safeguarding the nation’s security interests in the decades ahead.
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