Defence Minister Rajnath Singh, while highlighting the success of Operation Sindoor, said that the valour shown by the armed forces and the proven effectiveness of indigenous equipment have significantly boosted global demand for Indian-made defence products.
“The world is looking at our defence sector with new respect. A single delay or error in financial processes can directly affect operational preparedness,” Rajnath Singh said during the Controllers’ Conference of the Defence Accounts Department (DAD) here today, a Defence Ministry statement said.
He also called on the DAD to evolve from a ‘controller’ to a ‘facilitator’ in sync with increasing participation of the private sector in defence.
Stating that India has moved towards Aatmanirbharta and structural reform in defence planning, finance, and innovation under the Modi government, Rajnath said, “Most of the equipment we once imported is now being made in India. Our reforms are succeeding because of the clarity of vision and commitment at the highest level”.
Addressing the larger geopolitical context, the Minister mentioned the rising global military expenditure reaching USD 2.7 trillion in 2024, as per Stockholm International Peace Research Institute and stated that this opens up tremendous opportunities for India’s indigenous defence industries.
He stressed that with the government’s focus on ‘Aatmanirbharta in Defence’, India’s industries must be prepared for the global demand shift and play a larger role in exports and innovation.
“Our effort is to ensure that decisions are taken swiftly so that we can begin manufacturing larger engines right here in India and that this journey begins with the hands of Indians,” he added, reaffirming the government’s commitment to building advanced indigenous defence manufacturing capabilities.
Highlighting the increasing strategic and economic significance of the defence sector, he called for a shift in perception from defence spending as mere expenditure to an economic investment with multiplier impact.
“Until recently, defence budgets were not seen as part of the national economy. Today, they are growth drivers,” he added. He mentioned that India, along with the rest of the world, is entering a new phase of re-armament, marked by capital-intensive investments in the defence sector.
He urged the department to incorporate Defence Economics in their planning and assessments, including social impact analysis of R&D projects and dual-use technologies.
The Defence Minister also referred to the recently launched Research, Development and Innovation (RDI) scheme with a budget of Rs one lakh crore, which prioritises defence sector innovation and procurement of high-end technology.
He encouraged the DAD to become active enablers in ensuring smooth implementation and timely funding of such projects, particularly from start-ups, MSMEs, and the private sector. He highlighted the fact, for the first time, the Defence Acquisition Council (DAC) has approved the acquisition of weapon systems through the capital route, and urged the department to be prepared for financial activities related to this shift.
Rajnath praised the department’s new motto ‘Alert, Agile, Adaptive’ and noted that these are not mere words, but a reflection of the work culture required in today’s rapidly evolving defence environment. He urged officials to undertake internal reform through self-introspection, rather than relying solely on external audits or consultants.
“Improvements made through internal evaluation create living organisations. These reforms are more organic, with fewer barriers,” he stated.
“Peace time is nothing but an illusion. Even during periods of relative calm, we must prepare for uncertainty. Sudden developments can force a complete shift in our financial and operational posture. Whether it’s stepping up equipment production or adapting financial processes, we must be ready with innovative techniques and responsive systems at all times,” the defence Minister stated.
He called upon DAD to incorporate this mindset into their planning, budgeting and decision-making systems.
He also referred to upcoming digital initiatives such as the Comprehensive Pay System and Centralised Database Management System, which will simplify pay and personnel data management and support faster, real-time decision-making across services. He welcomed the department’s work on the vision document and roadmap for Defence Finance & Economics, while urging timely implementation and the ability to make course corrections, if required.
