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Rajnath Singh Urges Agile Financial Systems and Indigenous Capability at Defence Accounts Conference

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Raksha Mantri Rajnath Singh addressed the Controllers’ Conference of the Defence Accounts Department (DAD) in New Delhi, affirming the department’s critical role in maintaining operational readiness and financial agility in India’s Armed Forces. Reflecting on the successful execution of Operation Sindoor, Singh said that the valour demonstrated by Indian soldiers and the effectiveness of domestically developed equipment have significantly enhanced international demand for Indian defence products. He cautioned that any financial misstep could directly undermine the military’s preparedness and called for a transition from the traditional role of “controller” to “facilitator” within the defence finance ecosystem.

He credited the defence sector’s transformation to Prime Minister Narendra Modi’s leadership and the sustained push for Aatmanirbharta. Singh said that defence planning, innovation, and procurement have undergone structural reform and emphasised the shift from importing to indigenously manufacturing equipment.

Citing data from the Stockholm International Peace Research Institute, Singh said global military spending reached USD 2.7 trillion in 2024. He noted that this trajectory represents an opportunity for Indian defence manufacturers to emerge as global suppliers. He reaffirmed the government’s intent to begin manufacturing larger engines domestically and underscored that decisions on such projects must be made swiftly and executed by Indian hands.

The Raksha Mantri argued that defence budgets must be seen as growth engines, not mere expenditures, and that every rupee spent in defence has a multiplier effect across the economy. He advocated incorporating defence economics, R&D social impact studies, and dual-use technology evaluations into departmental planning.

He highlighted the Rs 1 trillion Research, Development and Innovation (RDI) Scheme and its mandate to support advanced technology acquisition and innovation in the defence sector. He urged the DAD to enable timely funding and execution, especially for startups, MSMEs, and private players. He also drew attention to the Defence Acquisition Council’s recent approval of capital route procurements and called on the DAD to prepare accordingly.

Singh praised the department’s motto “Alert, Agile, Adaptive,” calling it a necessary mindset in a defence landscape marked by uncertainty, even during peacetime. He encouraged internal reform through self-evaluation rather than external audits, describing such change as organic and sustainable.

He reiterated that peacetime is an illusion and that systems must be ready for rapid changes in operational posture, including ramped-up production and innovative financial adjustments. Public procurement through the Government e-Marketplace (GeM) was cited as a transparency success, with defence purchases exceeding Rs 2 trillion by FY 2024–25. He urged Integrated Financial Advisors and Competent Financial Authorities to maximise its use.

The Raksha Mantri commended the SPARSH pension platform for bringing over 3.2 million defence pensioners into a faceless, transparent system. He reaffirmed that serving veterans is not a favour but a national duty. He also supported upcoming digital initiatives like the Comprehensive Pay System and Centralised Database Management System, saying they would enable faster and smarter personnel and finance management.

He emphasised the importance of timely and error-free work at every level of the department, warning that even minor lapses can delay essential equipment supply and compromise operational readiness. He congratulated the Defence Secretary and Controller General of Defence Accounts for achieving full utilisation of the capital budget in the previous fiscal year, and called for continued fiscal discipline rooted in efficiency and purpose-driven deployment.

The conference saw the release of the Vision Document, Mission Statement, updated motto, Market Intelligence Report 2025, and Revised Defence Accounts Code. The gathering was attended by Chief of Defence Staff General Anil Chauhan, Chief of the Naval Staff Admiral Dinesh K Tripathi, Chief of the Army Staff General Upendra Dwivedi, Chief of the Air Staff Air Chief Marshal AP Singh, Defence Secretary Rajesh Kumar Singh, DRDO Chairman Dr Samir V Kamat, Financial Adviser (Defence Services) S G Dastidar, and Controller General of Defence Accounts Dr Mayank Sharma.

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