New Delhi: Demonstration of the capabilities of India’s domestic
equipment has further increased the global demand for indigenous products, defence minister Rajnath Singh said on Monday, while addressing the Controllers’ Conference of the Defence Accounts Department (DAD) in New Delhi.
“The world is now viewing our defence sector with new respect. A single delay or error in financial processes can directly affect operational
preparedness,” he said, calling upon the DAD to evolve from a ‘controller’ to a ‘facilitator’ in sync with increasing participation of the private sector in defence.
Crediting the ongoing transformation in the defence sector to the visionary leadership of Prime Minister Narendra Modi, under whose guidance the country has moved towards Aatmanirbharta
and structural reforms in defence planning, finance, and innovation, Singh 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.”
The defence minister pointed to how global military expenditure rose to US$ 2.7 trillion in 2024, as per the Stockholm International Peace Research Institute and stated that this opens up tremendous opportunities for India’s indigenous defence industries. He stressed that with the Prime
Minister’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 in 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, Singh 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 said.
Referring to how 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, the minister urged the
department to incorporate Defence Economics in their planning and assessments, including social impact
analysis of R&D projects and dual-use technologies.
Singh also referred to the recently launched Research, Development and Innovation (RDI) Scheme with a budget of Rs 1 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 that for the first time, the Defence Acquisition Council 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.
The minister 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,” he added.
Singh urged the department to move towards faceless and time-bound payment systems to encourage
increased participation from private players in defence manufacturing.
“The more efficient and transparent
your processes, the greater the confidence in our system,” he stated, emphasising that even small errors in the department’s processes can have significant consequences.
“At the place where you are working, if you make even a small mistake, then the soldiers do not get the necessary resources on time. Due to our negligence, there can be a problem in budget allocation and it directly affects operational readiness,” he stressed.