Initiatives Of The Ministry Of Defence

Policy Update
Shivashish Narayan

The Ministry of Defence (MoD) of India is the primary agency for implementing the government’s defence policies and managing the country’s Armed Forces. With the President as the Supreme Commander of the Armed Forces, the MoD ensures readiness and coordination across all defence branches, aligning military operations with national policy. Headed by the Defence Minister also known as the Raksha Mantri, the MoD provides the policy framework and resources to support the Armed Forces’ mission.

The MoD’s organizational structure includes five departments each with specialized functions:

1. Department of Defence (DoD) (RAKSHA VIBHAG): Led by the Defence Secretary this department is the core of the MoD. It manages the defence budget, policy-making and matters related to Parliament. It coordinates defence cooperation with foreign nations, oversees policy on security issues and handles key defence-related administrative matters.

2. Department of Military Affairs (DMA) (SAINYA KARYA VIBHAG): Established in 2019, this department is led by the Chief of Defence Staff (CDS) to foster greater jointness among the Army, Navy and Air Force. DMA aims to streamline operations across the services, ensuring integrated planning, training and resource sharing for optimal military readiness and efficiency.

3. Department of Defence Production (DDP) (RAKSHA UTPADAN VIBHAG): Focused on defence manufacturing, this department promotes indigenization and manages Defence Public Sector Undertakings (DPSUs). It aims to reduce dependency on imports by encouraging local equipment, arms and supplies manufacturing, supporting the “Make in India” initiative for a self-reliant defence industry.

4. Department of Defence Research and Development (DDR&D) (RAKSHA ANUSANDHAN TATHA VIKAS VIBHAG): This department, which is responsible for the research and development of cutting-edge defence technologies, works primarily through the Defence Research and Development Organisation (DRDO). DDR&D drives innovations across various fields—missiles, aeronautics, electronics and naval systems—equipping the Armed Forces with advanced technology.

5. Department of Ex-Servicemen Welfare (DESW) (POORVA SENANI KALYAN VIBHAG): This department oversees the welfare, resettlement and pension schemes for retired Armed Forces personnel. It is dedicated to supporting ex-servicemen and their families, ensuring they receive financial, medical and social support post-service.

These departments work under the MoD to protect India’s sovereignty, modernize its defence capabilities and enhance its strategic autonomy through indigenous production and technology. The MoD plays a crucial role in maintaining India’s defence posture, contributing to regional stability and ensuring readiness against emerging threats.

Atmanirbhar Bharat Abhiyan

The Atmanirbhar Bharat initiative has driven substantial progress in India’s defence sector, emphasizing local manufacturing and self-reliance. The Defence Ministry allocated ₹71,438 crore (64.09% of the modernization budget) for domestic procurement in 2021-22, later raising this to 75% in 2023-24. Since 2020, the Defence Acquisition Procedure (DAP) has mandated prioritizing indigenous production through Positive Indigenisation Lists of 209 and 2,851 items, limiting imports to support local industries. Defence exports hit a record ₹211 billion in 2023-24, up from ₹43.12 billion in 2014-15. The government’s 2025 target includes ₹1,750 billion (US$26 billion) in production and ₹350 billion (US$5 billion) in exports, bolstered by two Defence Industrial Corridors, with a projected ₹20,000 crore investment by 2024.

A. Department of Defence (DOD)

Defence Acquisition Procedure (DAP) 2020
The Defence Acquisition Procedure (DAP) 2020, designed to boost self-reliance under the “Make in India” and “Atmanirbhar Bharat” programs, includes reforms for faster procurement, higher indigenous content and support for MSMEs. In recent approvals, the Defence Acquisition Council (DAC) allocated ₹84,560 crore (February 2024) to procure indigenously designed equipment, such as anti-tank mines, medium-range maritime aircraft and heavy-weight torpedoes, from Indian vendors. Enhanced offsets focus on technology transfer and investment in local production, with iDEX initiatives aimed to shorten acquisition timelines from 2 years to 22 weeks for start-up projects. The DAP also raises indigenous content requirements across procurement categories to up to 60%, while permitting Foreign Direct Investment (FDI) up to 74% in specific defence categories, fostering a robust domestic defence ecosystem.
Defence Offset Policy
The Defence Offset Policy, under DAP 2020, mandates foreign vendors to invest 30-50% of contract values over ₹2,000 crore back into India’s defence sector. Since 2007, 46 offset contracts worth ₹66,427 crore have been signed. Recently, the DAC approved ₹84,560 crore in indigenous acquisitions to modernize the armed forces, emphasizing domestic production through partnerships and technology transfers. As of 2022, 15 offset agreements totalling USD 1.86 billion have been signed, with offsets increasingly fulfilled through joint ventures, direct investments and technology transfers to DRDO. Notably, government-to-government and single-vendor contracts are exempt from these requirements.
Defence Industrial Corridors (2018)
India’s Defence Industrial Corridors, launched in 2018-19, include the Uttar Pradesh Defence Industrial Corridor (UPDIC) and the Tamil Nadu Defence Industrial Corridor (TNDIC), aiming to foster defence manufacturing and attract ₹10,000 crore in investments for each by 2024-25. UPDIC comprises six nodes—Aligarh, Agra, Jhansi, Kanpur, Chitrakoot and Lucknow—and has secured ₹12,191 crore in Memorandums of Understanding (MoUs), with ₹2,445 crore invested to date. TNDIC, with nodes in Chennai, Coimbatore, Hosur, Salem and Tiruchirappalli, has secured ₹11,794 crore in MoUs, with ₹3,894 crore invested. Both corridors support MSMEs, offer infrastructure incentives and promote self-reliance.
Indian National Defence University (INDU)
The Indian National Defence University (INDU), conceived in 1967 and approved in 2010, is set to be established on 205 acres in Gurgaon, Haryana, with an estimated project cost of Rs. 2072 crore. INDU’s mission is to enhance defence, security and strategic policy education for military personnel, policymakers and officials from allied nations. Supported by HQ IDS funds, the university will promote policy-oriented research, offer national security and technology courses and align with institutions like NDC, NDA and DSSC. The draft bill is pending in Parliament, while RRU partially complements INDU’s role in national security education.

B. Defence Research and Development Organisation (DRDO)

Integrated Guided Missile Development Program (IGMDP)
The Integrated Guided Missile Development Program (IGMDP), initiated in 1983 under Dr. APJ Abdul Kalam, aimed to achieve missile self-reliance in India with a sanctioned Rs. 389 crore budget. It focused on five key missiles: Prithvi (surface-to-surface), Agni (re-entry technology demonstrator), Akash (surface-to-air), Trishul (short-range surface-to-air) and Nag (anti-tank). Prithvi and Agni were successfully inducted, Akash went into production, Nag continued trials and Trishul served as a technology demonstrator. Recently, in 2024, India successfully tested Agni-Prime, a nuclear-capable ballistic missile with a range of 1,000–2,000 km, featuring advanced mobility and quick-launch capability from a sealed container.
Acing Development of Innovative Technologies with iDEX (ADITI)
The Acing Development of Innovative Technologies with iDEX scheme, launched in 2024, is a major initiative in India’s defence innovation landscape. With a budget of Rs 750 crore for 2023-2026, ADITI aims to support around 30 deep-tech projects in critical areas such as AI, quantum encryption and autonomous systems. Under the scheme, startups and MSMEs are eligible for grants up to Rs 25 crore, covering 50% of product development costs. Recently, the 2024-25 defence budget increased allocations for iDEX from Rs 115 crore to Rs 518 crore, highlighting the government’s commitment to defence self-reliance. ADITI’s Technology Watch Tool monitors key project milestones to bridge capability gaps for the armed forces, ensuring timely and strategic technology advancements.
Army Design Bureau (ADB)
The Army Design Bureau (ADB), established in August 2016, plays a pivotal role in advancing India’s defence self-reliance by connecting the Indian Army with industry, academia and the DRDO. It identifies the army’s technological needs, aligns them with industry capabilities and promotes the Indigenous development of defence systems. The ADB publishes a “Compendium of Problem Statements” to communicate requirements and fosters collaborations with MSMEs, startups and research institutions, driving innovation and indigenization under the “Make in India” initiative. With over 350 defence projects managed and an investment of ₹1.8 lakh crore, the ADB has made significant strides in enhancing India’s defence capabilities. In 2024, the Bureau continues to support Make-II projects and the Technology Development Fund (with ₹100 crore) for R&D, facilitating the indigenous development of advanced UAVs, counter-drone systems, fighter jets and next-gen communication systems.

C. Department of Defence Production (DDP)

Defence Production and Export Promotion Policy (DPEPP) 2020
Defence Production and Export Promotion Policy (DPEPP) 2020 aims to achieve a turnover of Rs 1,75,000 crore ($25 billion) by 2025, enhancing India’s defence production and export capabilities. The policy focuses on increasing the indigenization of defence systems, boosting R&D with private sector participation and fostering innovation. Key reforms include simplifying acquisition procedures, promoting the manufacturing of high-tech systems locally and encouraging the export of defence products. Budgetary support includes enhancing financial viability through government schemes and facilitating faster decision-making. The policy also envisions synergy between the Ministry of Defence and industry. However, challenges like bureaucratic inefficiency and vague processes must be addressed for success.
Mission Raksha Gyan Shakti
Mission Raksha Gyan Shakti was launched in 2018 by the Ministry of Defence to promote Intellectual Property Rights (IPR) in India’s defence sector, aiming for indigenisation and self-reliance. The mission facilitates the creation of innovative IPRs within Defence Public Sector Undertakings (DPSUs), Ordnance Factories (OFs) and the private sector, with a focus on patents, trademarks and designs. An IPR Facilitation Cell was established, training over 10,000 personnel to file 1,000+ IPRs. In the 2022-2023 Defence Budget, a significant allocation of ₹1,000 crore was made towards promoting indigenous manufacturing and research & development. This initiative aligns with the ‘Aatmanirbhar Bharat’ vision, boosting India’s defence manufacturing capabilities and promoting cost-effective, high-quality products globally.
Project Seabird
Project Seabird is India’s largest naval infrastructure project, aimed at developing the Karwar Naval Base into a state-of-the-art facility. With an allocated budget of ₹19,600 crore, the project spans multiple phases, including Phase IIA, which is under construction. Once completed, it will accommodate 32 ships, 23 yardcraft, a dual-use Naval Air Station, a full-fledged naval dockyard and four dry berths. The project will house around 10,000 personnel, create 7,000 direct and 20,000 indirect jobs and provide significant economic benefits. Over 90% of materials are sourced domestically, aligning with the ‘Aatmanirbhar Bharat’ initiative. It is expected to enhance tourism in North Karnataka and South Goa.
Project Varsha
Project Varsha is a crucial defence infrastructure project aimed at establishing an underground nuclear submarine base near Rambilli, Andhra Pradesh, approximately 70 km from Visakhapatnam. Estimated at ₹31,500 crore, the project involves constructing extensive tunnels, piers, repair facilities and support amenities for submarines, including the Arihant-class and the upcoming S5-class. The base is strategically located to ensure stealth, with underground chambers allowing submarines to enter and exit without surfacing, evading satellite detection. The base’s proximity to the Bhabha Atomic Research Centre (BARC) and the Eastern Naval Command enhances India’s nuclear deterrence capabilities. The project is part of India’s broader goal to enhance its nuclear triad and maritime defence capabilities, with Phase II expected to expand technical areas and strategic support facilities.
Defence Testing Infrastructure Scheme (DTIS)
The Defence Testing Infrastructure Scheme (DTIS), launched in May 2020 by Raksha Mantri Shri Rajnath Singh, is a ₹400 crore initiative to boost India’s defence and aerospace sectors by creating advanced testing facilities. Designed to support MSMEs and startups, DTIS funds up to 75% of project costs for establishing 6-8 Greenfield testing infrastructures. Seven centers are planned, with three in Uttar Pradesh for domains like UAS and Communications and four in Tamil Nadu, including India’s first integrated UAS testing facility. This facility, spanning 2.3 acres in SIPCOT Industrial Park, will enable private and public firms to access crucial testing capabilities, promoting self-reliance.
Ordnance Factory Board (OFB) Corporatization
The Ordnance Factory Board (OFB) was corporatized in 2021 through the creation of seven public sector undertakings (PSUs) under the Ministry of Defence (MoD), to enhance efficiency, accountability and competitiveness. The corporatization process focused on transforming the OFB into more flexible and market-driven entities while maintaining full government ownership. The move was part of India’s broader push for defence sector reforms under the Atmanirbhar Bharat initiative, to boost indigenization in defence production. The budget allocated for this transition included Rs. 3,100 crore for the restructuring and modernization of these PSUs, enabling their growth and operational optimization.

D. Department of Military Affairs (DMA)

Agnipath Scheme
The AGNIPATH Scheme, approved by the Union Cabinet on 14 June 2022, recruits youth into the Armed Forces for a four-year tenure as Agniveers. The scheme aims to create a youthful, technically adept and disciplined force, lowering the average age of the military by 4-5 years. Agniveers will receive an attractive monthly package with Risk & Hardship allowances and a one-time Seva Nidhi package, including their contribution and government matching funds, amounting to ₹11.71 lakh upon completion. A total of 46,000 Agniveers will be recruited this year. The scheme ensures no compromise on standards, with permanent enrollment options for top performers.
Integrated Capability Development Plan (ICDP)
The Integrated Capability Development Plan (ICDP), introduced under Defence Acquisition Procedure (DAP) 2020, aims to address India’s evolving defence needs by aligning long-term (10 years) and medium-term (5 years) acquisition plans. It replaces the Long-Term Integrated Perspective Plan (LTIPP), ensuring a dynamic and responsive approach. The ICDP emphasizes Indigenous content, with categories like ‘Buy (Indian-IDDM)’ requiring at least 50% indigenous content. The plan aims to expedite procurement processes, reduce approval points and increase accountability by centralizing functions. Additionally, it supports ‘Atmanirbhar Bharat’ through indigenization. With a focus on strategic modernization, the ICDP is crucial for enhancing defence self-reliance and national security.
Defence Cyber Agency
The Defence Cyber Agency (DCA), established under the Ministry of Defence, is fully operational to counter and mitigate cyber threats targeting India’s defence infrastructure. The Agency oversees the creation of Cyber Emergency Response Teams (CERT) across all three services, strengthening India’s defence capabilities. In response to the evolving cyber landscape, the Government of India is finalizing its National Cybersecurity Strategy. The budget allocation for the DCA and cybersecurity initiatives has been progressively increasing, with a focus on enhancing defence cyber capabilities. The National Mission on Quantum Technologies and Applications (NM-QTA) has received Rs. 8 crores over five years (2020-21 onwards) to strengthen cyber defences, focusing on quantum cryptography and cybersecurity research. Cyber Audits, Physical Checks and Policy Guidelines are regularly implemented to ensure a robust cyber defence posture, fortifying national security.
Defence Space Agency
The Defence Space Agency (DSA), established in 2018, is a tri-service agency tasked with managing India’s military space capabilities. The DSA integrates the space functions of the Army, Navy and Air Force, focusing on satellite communications, navigation, surveillance and reconnaissance. It operates key military satellites like GSAT-7 and GSAT-7A, essential for defence operations. The DSA collaborates with ISRO, DRDO and IN-SPACe to develop advanced space technologies and Space Situational Awareness (SSA). The agency’s mandate includes protecting India’s space assets from threats like satellite jamming and space debris. A dedicated Space Command is also envisioned for enhanced operational capacity. The 2024 budget allocation for space defence initiatives is approximately ₹22,000 crore, underlining the nation’s strategic focus on space.

E. Department of Ex-Servicemen Welfare (DESW)

One Rank One Pension scheme
The One Rank One Pension (OROP) scheme, launched on November 7, 2015, ensures uniform pensions for military personnel retiring at the same rank with the same service length, irrespective of their retirement date. Celebrating 10 years in 2024, this landmark initiative was implemented to honour veterans’ sacrifices and bridge disparities between past and current retirees. The scheme recalibrates pensions every five years, with the initial alignment based on 2013 rates, effective from July 1, 2014. To date, OROP has benefited over 25 lakh veterans and their families, enhancing financial security and signalling the government’s gratitude. The 2024 budget allocates ₹5,500 crore to sustain this commitment. Prime Minister Modi emphasized that OROP reflects India’s respect for its heroes, reinforcing the bond between the nation and its defenders. This policy, with its periodic revisions, will continue to serve as a cornerstone of veteran welfare and military support, ensuring dignity and recognition for those who protect the nation.
Army Welfare Education Society (AWES)
The Army Welfare Education Society (AWES), founded in 1983, provides accessible, quality education to children of Army personnel through 137 Army Public Schools and 12 professional colleges, with a student strength of 230,000. Originally formed to address the limited educational options for Army families, AWES now offers comprehensive programs from pre-primary to professional education. Notable initiatives include the Faculty Development and Research Centre for teacher training and recent partnerships to enhance inclusivity with Indian Sign Language. Supported through tuition and defence funds, AWES invests in modern infrastructure, aligning with NEP 2020 for holistic education. Budget details are sourced from defence allocations and welfare funds.
Army Group Insurance Fund (AGIF)
The Army Group Insurance Fund (AGIF), established in January 1976, is a self-sustaining scheme designed to provide insurance coverage to serving and retired members of the Indian Army and their dependents. Managed without government financial assistance, it operates 16 schemes, covering approximately 19 lakh personnel. AGIF offers disability benefits and post-retirement extended insurance, financed entirely through monthly subscriptions. Additionally, it provides loans for house, conveyance and computer purchases at competitive rates. As of 2024, Rs. 7,121.57 crore has been disbursed in 19,64,012 claims. The fund is independently managed and overseen by an advisory committee comprising industry experts.
Ex-Servicemen Contributory Health Scheme (ECHS)
The Ex-Servicemen Contributory Health Scheme (ECHS), launched in April 2003, provides quality medical care to Ex-Servicemen (ESM) and their dependents. With 30 Regional Centres and 433 Polyclinics across India, including 6 in Nepal and 3158 empanelled medical facilities, it serves a beneficiary base of approximately 55 lakhs. Membership, mandatory for pensioners since 2003, is extended to various categories, including Territorial Army, Assam Rifles and WW II veterans. The contribution varies from Rs. 30,000 to Rs. 1,20,000. Over the last 3 years, 3.35 crore beneficiaries availed services, with an expenditure of Rs. 14,342.93 crores in 2020-23. The E-SeHAT teleconsultation initiative, launched in 2024, provides remote healthcare, aligning with the Digital India vision.
Armed Forces Flag Day Fund (AFFDF)
The Armed Forces Flag Day Fund (AFFDF) supports India’s ex-servicemen, war widows and dependents through financial aid for education, medical needs, marriage and rehabilitation. Celebrated annually on December 7, Flag Day seeks public and corporate contributions, which are tax-exempt under Section 80G. The fund assists over 32 lakh veterans and six lakh widows, with an additional 60,000 service members retiring annually. Recent government initiatives raised grants, e.g., medical assistance increased from ₹30,000 to ₹50,000 and vocational training for widows from ₹20,000 to ₹50,000. In 2022-23, ₹250 crore supported 99,000 beneficiaries, with CSR contributions fulfilling Section 135 obligations.
Bharat Ke Veer (2017)
Bharat Ke Veer is an online platform launched on April 9, 2017, by the Ministry of Home Affairs to enable citizens to contribute financially to the families of martyrs from the Central Armed Police Forces (CAPFs). The portal allows direct donations to the next of kin (NoKs) of fallen soldiers, ensuring their families receive the necessary support. The initiative was conceptualized with the help of actor Akshay Kumar and aims to provide a minimum of Rs. 1 crore to the families, with contributions ranging from Rs. 10 lakh to Rs. 25 lakh, depending on the martyr’s service. By June 2019, the portal had received Rs. 299.76 crore in donations.
SPARSH Pension Portal
The SPARSH (System for Pension Administration Raksha) is a digital initiative by the Ministry of Defence, that provides a comprehensive solution for managing defence pensions. It empowers pensioners with transparent access to their pension account, covering all activities from initiation, disbursement and revision to grievance management. The portal ensures last-mile connectivity by onboarding 1,128 bank branches as SPARSH Service Centres, extending services to over 26,000 bank branches nationwide. The system supports digital identification, annual updates and data verification. As part of Digital India, SPARSH aims for efficiency, transparency and accountability in pension management. Budget allocation for pension reforms under SPARSH contributes to improving the overall pension disbursement process.

References

About the Contributor: Shivashish Narayan is an Intern at IMPRI. He is a law graduate from Indore Institute of Law.

Acknowledgement: The author would like to express sincere gratitude to Dr. Arjun Kumar, Ms Aasthaba Jadeja, Ms Srishtistuti and Mr Devananda for their invaluable contributions into this article.