As 2025 draws to a close, India’s defence sector has undergone a seismic shift, marking a period of remarkable transformation described as the “Year of Reforms.” This pivotal year has seen India pivot from a reliance on imports to a robust focus on self-reliance, technological advancement, and enhanced global competitiveness in military capabilities.
The urgency for these reforms has been underscored by persistent tensions at the borders with China and ongoing security challenges posed by Pakistan, alongside changing regional geopolitical dynamics. In response, New Delhi has accelerated reforms spanning manufacturing, manpower, procurement, infrastructure, and exports, fundamentally transforming the armed forces.
At the core of this reform agenda lies a strong emphasis on indigenisation. The government has aggressively expanded the Positive Indigenisation Lists, mandating domestic procurement for thousands of defence items. This strategy has invigorated India’s defence industrial ecosystem, engaging thousands of micro, small, and medium enterprises (MSMEs) and startups to supply critical components to the armed forces. A notable example of this shift is the approval for the production of 307 units of the Advanced Towed Artillery Gun System (ATAGS), a 155mm howitzer co-developed by the Defence Research and Development Organisation (DRDO) and Bharat Forge. This milestone reflects a growing confidence in home-grown artillery solutions.
In addition to indigenisation, reforms have been made to military manpower and technology integration. The Agnipath scheme has altered the profile of armed forces personnel, lowering the average age of troops and fostering a focus on physical fitness and technical skills necessary for modern, network-centric warfare. While the scheme has faced criticism regarding the potential loss of experienced personnel, its supporters argue that it encourages adaptability and reallocates funds previously spent on pensions, which once consumed a substantial portion of the defence budget.
On the technological front, the Innovations for Defence Excellence (iDEX) initiative has empowered numerous startups to innovate in areas such as night-vision devices, surveillance drones, and AI-based imagery analysis, effectively bridging the gap between military needs and private sector capabilities.
Since the catastrophic Galwan clash in 2020, India has made extensive enhancements to its border infrastructure. The Border Roads Organisation has constructed hundreds of kilometers of all-weather roads, strategic bridges, and critical tunnels to ensure year-round access to forward areas. Advanced landing grounds have been established to support heavy aircraft operations in extreme altitudes, significantly bolstering the country’s military readiness. Concurrently, the problem of long-standing ammunition shortages has been alleviated through increased involvement of the private sector and a shift towards precision-guided munitions.
Accelerated procurement processes have also been a hallmark of the reforms initiated in 2025. Emergency procurement powers now permit acquisitions of up to ₹300 crore within six months, empowering field commanders with greater financial authority to address immediate operational needs. In recent months, frontline units have equipped themselves with SIG716 assault rifles, while the Navy has enhanced its anti-submarine warfare capabilities with the acquisition of MH-60R Seahawk helicopters. The rapid transition of indigenous platforms like Dhanush artillery guns and Arjun Mk1A tanks from trials to operational status exemplifies the commitment to efficiency.
Organisational restructuring has gained momentum, with a focus on advancing Integrated Theatre Commands aimed at promoting jointness across different military branches. The role of the Chief of Defence Staff (CDS) has been reinforced to spearhead this initiative, drawing on operational experiences from formations such as the Andaman and Nicobar Command. Although challenges related to inter-service coordination remain, the shift towards integrated military planning and execution is gaining traction.
The defence export sector has also experienced significant growth, validating the reforms undertaken. Exports soared to ₹21,083 crore in 2023–24, a substantial increase from approximately ₹2,000 crore five years prior. Indian-made artillery systems, missiles, radars, and ammunition have found markets in various countries, including the Philippines and Armenia.
Despite these advancements, challenges persist, particularly in the context of delays in major platform acquisitions and the complexities of fully integrating theatre commands. Nevertheless, the strategic direction is clear. In 2025, propelled by geopolitical pressures and aligned policy frameworks, India’s military has decisively moved towards greater industrial depth, operational jointness, and technological superiority, making the “Year of Reforms” a landmark chapter in its defence history.
