Rajnath Singh Unveils New Financial Powers for Defence Services
Defence Minister Rajnath Singh has launched the Defence Financial Powers Delegation Scheme (DFPD-2026), empowering the armed forces with financial authority for revenue-related purchases exceeding ₹12 lakh crore annually. This initiative aims to enhance operational readiness, promote domestic research, and reduce reliance on foreign manufacturers. The new framework is expected to accelerate infrastructure development and encourage participation from private startups and SMEs, fostering greater self-reliance in the defence sector. Discover how these reforms will impact India's defence capabilities.
Jun 4, 2026, 16:15 IST
Introduction of Enhanced Financial Powers
On Thursday, Defence Minister Rajnath Singh announced the rollout of the Defence Financial Powers Delegation Scheme (DFPD-2026), which will empower the armed forces with financial authority for revenue-related purchases exceeding ₹12 lakh crore annually.
Significance of the New Framework
In a social media post, the Defence Minister congratulated the Ministry of Defence and the armed forces for receiving these enhanced financial powers under the DFPD-2026. He emphasized the strategic implications of these reforms, stating that the new framework will enable field commanders to make swift decisions, enhance operational readiness, and reduce reliance on foreign equipment manufacturers by promoting domestic research.
Empowering Field Commanders
Rajnath Singh described this initiative as a significant step that will empower field commanders, facilitating quicker decision-making and ultimately improving operational readiness. The new policy aims to foster research and development within the defence sector while decreasing dependence on foreign product manufacturers.
Economic Benefits and Domestic Self-Reliance
Highlighting the economic advantages of the policy, the Defence Minister noted that this framework will enhance domestic self-reliance by involving private startups and small and medium enterprises. Doubling the financial powers for manufacturing projects will accelerate infrastructure development significantly.
Encouraging Indigenous Participation
He further stated that the participation of private sector players, including small and medium enterprises and startups, will play a crucial role in promoting indigenization within the defence sector. The financial authority granted for executing manufacturing projects has been doubled to ensure rapid execution and timely completion.