Defence Minister Arun Jaitley said perhaps for the first time after Independence, such a big and "far-reaching" reform process is being initiated in the Army.
Replying to a question that whether the exercise was undertaken keeping in view the Dokalam episode, Jaitley said, "This is not specific to any incident. It had been going on much prior to Dokalam."
The reform initiatives were recommended by a committee headed by Lt Gen DB Shekatkar (retd) which had a mandate to recommend measures for enhancing of combat capability and rebalancing defence expenditure of the armed forces to increase "teeth to tail ratio".
The panel had suggested 99 recommendations for structural changes in the Army and out of which the defence ministry has accepted 65 after consultations with all the stakeholders, Jaitley said.
The defence ministry said the reforms will be carried out by December 31, 2019.
The ministry said civilians will be redeployed in different wings of the armed forces for improving efficiency.
Jaitley said the Union Cabinet was today apprised of the defence ministry's decision to carry out the reform process in the Army.
"In a first ever exercise after Independence, the Ministry of Defence in consultation with the Indian Army has decided to reform the Indian Army in a planned manner. These decisions were approved by the Defence Minister," the ministry said in a statement.
In the first phase, it said the reforms will involve redeployment and restructuring of approximately 57,000 posts of officers, junior commissioned officers and other ranks and civilians.
It said optimisation of signals establishments, closure of military farms and army postal establishments in peace locations as well as restructuring of repair echelons in the army including base workshops will also be part of the extensive exercise.
The reform will also be carried out to ensure better utilisation of supply and transport facilities and animal transport units.
There will be enhancement in standards for recruitment of clerical staff and drivers in the Army as also improving the efficiency of the National Cadet Corps.
"Implementation has begun with the decision of the Cabinet Committee on Security to close 39 military farms in a time bound manner," the ministry said.
The army's commanders' in April had deliberated extensively on enhancing the Army's overall strike capability.
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