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The Ministry of Defence (MoD) closed its ‘Year of Reforms 2025’ with record levels of defence acquisitions and modernisation spending, underlining a sharp focus on combat readiness, jointness and indigenisation.
Since January 2025, the Defence Acquisition Council has cleared capital procurement proposals worth over Rs 3.84 lakh crore, with priority on India-made equipment and systems for the Armed Forces. In the ongoing financial year 2025–26, the MoD has already signed capital contracts totalling Rs 1.82 lakh crore for force modernisation.
Reflecting the pace of execution, the Ministry has utilised about 80% (Rs 1.2 lakh crore) of its Capital Acquisition Budget by the end of December 2025. Overall capital expenditure, including infrastructure, R&D and land, has reached 76% of the allocation, signalling accelerated spending on preparedness.
A parallel reform push has targeted faster procurement, industry participation and future-ready capability development. Key measures include:
- Streamlining procurement procedures and delegating greater financial powers
- Increasing private sector and MSME engagement, including 25% of defence research grants
- Expanding testing and technology access to industry
- Revising DAP-2020 and encouraging FDI
- Export facilitation and quality enhancement through quality assurance standards
Jointness and capability planning have progressed through several initiatives, including the Joint Operations Control Centre, the Integrated Capability Development Plan, the Vision 2047 roadmap, and improved integration among the three services. The Ministry of Defence (MoD) has stated that these reforms contributed to the successful execution of Operation Sindoor.
Women’s participation in combat and leadership roles has expanded, while long-term infrastructure and accommodation plans have been finalised to support operational deployment.
The Ministry stated that the sustained reform momentum during the’ Year of Reforms 2025′ has strengthened India’s defence preparedness and institutional efficiency.
