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India’s Defence Ministry Closes 2025 With Rs 3.84 Lakh Cr Approvals, Rs 1.82 Lakh Cr Contracts

The MoD touts a reform year that accelerated procurement with a priority on indigenised capability.

Overview

  • The Defence Acquisition Council cleared capital acquisition proposals exceeding Rs 3.84 lakh crore since January 2025 with a stated focus on modernisation through domestic sourcing.
  • Capital contracts worth Rs 1.82 lakh crore were signed in FY26 through December, with about 80% of the capital acquisition budget utilised and overall capital expenditure reaching 76%.
  • Procurement timelines were targeted through the Defence Procurement Manual 2025 from November 1, including simpler iDEX rules, streamlined export permissions, a revamped Defence EXIM Portal, and updated technology transfer and financial delegation policies.
  • Measures to deepen jointness included a Joint Operations Control Centre, Vision 2047, a Future Operations Analysis Group, and an Integrated Capability Development Plan, which the ministry said supported planning for Operation Sindoor.
  • Indigenisation and welfare steps featured streamlined licences, MSME capability mapping, shared test facilities, 25% of research grants for industry and academia, Quality Assurance 4.0 in DPSUs, plus veteran care upgrades such as doorstep medicines for infirm 70+ ex-servicemen, eSeHAT telemedicine, and SPARSH onboarding of 31.69 lakh pensioners with most legacy discrepancies resolved.