The Defence Ministry of India has achieved remarkable progress in capital procurement during the financial year 2025-26. Up to December 2025, it signed contracts worth ₹1.82 lakh crore aimed at modernising the armed forces.

This substantial investment underscores a commitment to enhancing defence readiness amid evolving geopolitical challenges.

The Defence Acquisition Council (DAC) has played a pivotal role in this drive. Since January 2025, it approved acquisition proposals totalling over ₹3.84 lakh crore. These approvals prioritise modernisation through indigenisation, ensuring that a significant portion of defence needs is met domestically.

By the end of December 2025, the ministry utilised approximately 80 per cent of its capital acquisition budget, equalling about ₹1.2 lakh crore. Overall capital expenditure reached 76 per cent, encompassing infrastructure, land acquisition, research and development, alongside procurement. This high utilisation rate reflects efficient financial management and accelerated project execution.

A key focus has been boosting private sector participation to fortify domestic supply chains. Measures include streamlining defence manufacturing licences and mapping competencies of micro, small, and medium enterprises (MSMEs). Market intelligence reports have also been prepared to refine demand-supply dynamics in procurement processes.

Reforms under the Defence Acquisition Procedure 2020 are under active review and revision. Encouragement of foreign direct investment in defence continues, alongside enhanced engagement with friendly nations. Initiatives such as defence lines of credit, including Bharat Maitri Shakti, and rationalisation of restricted distance norms near defence establishments are progressing steadily.

The ministry is advancing the formation of an export promotion body. Implementation of Quality Assurance 4.0 and Industry 4.0 in defence public sector undertakings (DPSUs) is underway. Additionally, a national integrated test laboratory for defence platforms is being established to elevate testing standards.

The year 2025 was designated as the "Year of Reforms" by the Defence Ministry. Under Defence Minister Rajnath Singh's leadership, wide-ranging reforms have strengthened jointness, defence preparedness, self-reliance, and welfare mechanisms. These efforts embody a "whole-of-government approach" to forge a modern, integrated, and future-ready defence ecosystem.

Joint military operations have benefited from these reforms. The establishment of a joint operations control centre, promulgation of Vision 2047 for the armed forces, and creation of a future operations analysis group are in various implementation stages. Joint training programmes and the Integrated Capability Development Plan have been finalised, with tangible outcomes evident in Operation Sindoor.

Expansion of women's roles in combat and leadership positions has been successfully completed. Military tourism initiatives have been promoted, and a long-term roadmap for operational infrastructure and accommodation stands prepared. These steps enhance inclusivity and operational efficiency across the services.

Veterans' welfare has received focused attention. Under the Ex-servicemen Contributory Health Scheme (ECHS), pan-India doorstep delivery of medicines has been introduced for ex-servicemen over 70 years with infirmity. Authorised local chemist limits have doubled, eSeHAT telemedicine consultations are available, and a nationwide rollout proceeds apace.

The System for Pension Administration (Raksha), or SPARSH, has onboarded 31.69 lakh defence pensioners. Of the 6.43 lakh discrepant cases migrated from legacy systems, 6.07 lakh have been normalised without impacting entitlements. This digital platform represents India's largest pension administration system, improving transparency and accessibility.

These reforms signify a sustained momentum in India's defence transformation. They are not mere isolated measures but elements of a continuous process. The goal is to cultivate a self-reliant defence ecosystem capable of safeguarding national security interests well into the future.

Based On PTI Report