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Year Of Reforms by Defence Ministry: From record defence production to major indigenisation milestones, missile advances, futuristic warfare tech and a strong
private-sector push, 2025 has been a defining year for India’s military transformation. Driven by the Aatmanirbhar Bharat (self-reliant India) initiative, the nation has achieved unprecedented milestones in domestic production, global exports, and structural integration. On the eve of New Year 2025, Defence Minister Rajnath Singh chaired a meeting with all the Secretaries of the Ministry of Defence (MoD) to review the progress on various schemes, projects, reforms and the way ahead. In order to give impetus to the ongoing and future reforms, it was unanimously decided to observe 2025 as the ‘Year of Reforms’ in the MoD.
2025: Year of Reforms by Defence Ministry- Key Highlights
Record Production and Exports
The financial year 2024-25 saw India’s annual production soar to an all-time high figure of Rs 1,50,590 crore. The milestone represents a robust 18 per cent growth over the previous fiscal's output of Rs 1.27 lakh crore, and a staggering 90 per cent increase since FY 2019-20, when the figure was Rs 79,071 crore.
This surge is mirrored in the export market, where India achieved record sales of Rs 23,622 crore, supplying equipment to over 100 countries.
Key drivers of the growth include:
Private Sector Share: Currently, the private sectors contribute approximately 23 per cent of total defence production, reflecting their growing role in the national ecosystem.
MSME Integration: India’s defence ecosystem is increasingly being shaped by small and medium-sized enterprises (SMEs) and startups. As of 2025, approximately 16,000 MSMEs have been integrated into the supply chains of major defence manufacturers, playing a crucial role in producing everything from electronics and components to cutting-edge drones and defence systems, according to a report of ET Edge Insights.
Policy Support: Reforms such as the Defence Procurement Manual (DPM) 2025 have decentralized decision-making to minimise bureaucratic delays.
Structural transformation: Integrated theatre commands rollout
- Unified army, Navy, and Air Force under joint commandos.
- Operational Theatres: Focus on Western, Northern, and Maritime theatres operational.
- Boosted jointness speed of decision-making
Major indigenisation milestones
Commissioning of INS Surat: P15B Guided Missile Destroyer Project
INS Surat was commissioned at the Naval Dockyard in Mumbai earlier in January. INS Surat, the fourth and final ship of the P15B Guided Missile Destroyer Project, ranks among the largest and most sophisticated destroyers in the world.
It has an indigenous content of 75 per cent and is equipped with state-of-the-art weapon-sensor packages and advanced network-centric capabilities, a statement released from the PMO had said.
Induction of INS Nilgiri: P17A Stealth Frigate Project
INS Nilgiri, inducted in to the Indian Navy in January this year, is the first ship of the P17A Stealth Frigate Project. It has been designed by the Indian Navy's Warship Design Bureau.
According to the Navy, INS Nilgiri is a major advancement over the Shivalik-class frigates, incorporating significant stealth features and reduced radar signature through state-of-the-art technology.
Completion of Kalvari-Class Submarines: Project 75
INS Vaghsheer, India’s sixth P75 Kalvari-class submarine, was officially commissioned into the Indian Navy on 15 January 2025 during a ceremony in Mumbai.
INS Vaghsheer, the sixth and final submarine of the P75 Scorpene Project, represents India’s growing expertise in submarine construction and has been constructed in collaboration with the Naval Group of France.
Aircraft and Helicopter Programmes
The year saw breakthroughs in high-tech combat platforms.
- AMCA (Advanced Medium Combat Aircraft): Approval of the execution model for India’s 5th-generation stealth fighter.
- LCH Prachand: A massive order of over Rs 62,000 crore for 156 Light Combat Helicopters.
Missile Capability Advancement
DRDO, in collaboration with the Strategic Forces Command (SFC), has carried out the successful launch of Intermediate Range Agni-Prime Missile from a Rail based Mobile launcher system, under a full operational scenario on September 24, 2025. This next generation missile is designed to cover a range up to 2000 km and is equipped with various advanced features.
The first-of-its-kind launch was carried out from a specially designed Rail based Mobile Launcher having the capability to move on Rail network without any pre-conditions. It provides for cross country mobility and has the capability to launch within a short reaction time with reduced visibility. It is self-sustained and is equipped with all independent launch capability features including the state-of-the-art communication systems and protection mechanisms.
The Missile trajectory was tracked by various ground stations and it was a text book launch meeting all mission objectives. This successful launch will enable futuristic rail based systems induction into services. The launch was witnessed by senior scientists of DRDO and Officers of Strategic Forces Command.
The Road Mobile Agni-P has already been inducted into the services after a series of successful flight trials.
The Private Sector Push
A major shift is occurring from state-run monopolies to private-sector partnerships.
Tata-Airbus C-295 Plant: The operationalization of the manufacturing plant in Vadodara marks a milestone for private-sector aircraft assembly in India.
Strategic Role: Increasing the footprint of private defence companies in the national supply chain.
