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Defence Ministry Closes ‘Year of Reforms’ With Rs 1.82 Lakh Crore Contracts, 80% Capital Outlay Used

The update emphasizes indigenisation through greater private participation alongside digitised veteran services.

Overview

  • The Defence Acquisition Council cleared capital proposals exceeding Rs 3.84 lakh crore since January 2025, prioritising modernisation through indigenisation.
  • The ministry signed Rs 1.82 lakh crore in capital contracts for FY 2025-26 by the end of December, according to the year-end update.
  • Capital acquisition utilisation reached about 80% by December with overall capital expenditure at roughly 76%, the ministry said.
  • Procurement was streamlined with the Defence Procurement Manual 2025 taking effect on November 1, including a simplified iDEX manual, rationalised export permissions, a revamped Defence EXIM portal, eased technology transfer policy and greater financial decentralisation, alongside expanded private-sector participation through streamlined licences, MSME mapping, shared test labs and a 25% research-grant allocation.
  • Veteran support expanded via ECHS doorstep medicine delivery for infirm ex-servicemen over 70, eSeHAT telemedicine, and SPARSH onboarding of 31.69 lakh pensioners with 6.07 lakh of 6.43 lakh discrepant cases resolved.