India’s defence modernisation gathers pace with Rs 1.82 lakh crore contracts signed in 2025

The defence ministry has signed capital contracts worth Rs 1.82 lakh crore for the modernisation of the armed forces in the financial year 2025–26 till the end of December, the government said on Thursday.

It said the Defence Acquisition Council has approved capital acquisition proposals worth more than Rs 3.84 lakh crore since January 2025 to enhance the country’s defence readiness, with a focus on modernisation through indigenisation.

“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,” the defence ministry said in a statement.

It added that the formation of an export promotion body, implementation of Quality Assurance 4.0 and Industry 4.0 in defence public sector undertakings, and the establishment of a national integrated test laboratory for defence platforms are being advanced.

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The ministry said 2025 was marked as the ‘Year of Reforms’. Under the leadership of Defence Minister Rajnath Singh, it 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,” it said.

Reiterating its position, the ministry said the Defence Acquisition Council approved capital acquisition proposals worth over Rs 3.84 lakh crore since January 2025 to enhance defence readiness, with a focus on modernisation through indigenisation. It also confirmed that in FY 2025–26 till the end of December, capital contracts worth Rs 1.82 lakh crore have been signed for the modernisation of the armed forces.

The ministry said it has achieved 80 per cent expenditure, amounting to approximately Rs 1.2 lakh crore, under the capital acquisition budget by the end of December 2025. The allocation is spent on the modernisation of the armed forces.

“The overall capital expenditure of the defence ministry has also reached up to 76 per cent, which includes expenditure on infrastructure, land, research and development, among others, in addition to capital acquisition,” it said.

To promote greater indigenisation in defence and secure supply chains, the government said private sector participation has been increased. This includes streamlining defence manufacturing licences, mapping the competencies of micro, small and medium enterprises, and preparing market intelligence reports to improve demand–supply analysis in defence procurement.

The ministry said 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 programmes and finalisation of the Integrated Capability Development Plan are under various stages of implementation. It added that the steps taken in this direction bore fruit during the planning and execution of Operation Sindoor.

The 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, the ministry said.

On veterans’ welfare, the ministry said that to improve the delivery of medical cover under the Ex-servicemen Contributory Health Scheme, pan-India doorstep delivery of medicines to ex-servicemen aged over 70 years with infirmity has been introduced. It added that authorised local chemist limits have been doubled, eSeHAT telemedicine consultations introduced, and a pan-India rollout is underway.

The ministry also said 31.69 lakh defence pensioners have been onboarded on SPARSH, India’s largest digital pension platform. Of the 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,” the government said.

(With inputs from PTI)