Defence Minister Rajnath Singh addressed the Controllers' Conference of the Defence Accounts Department (DAD) in New Delhi on July 7, 2025, emphasising the department's critical role in strengthening the operational readiness and financial agility of the Armed Forces. Referring to the success of Operation Sindoor, he stated that the valour displayed and demonstration of the capability of domestic equipment has further increased the global demand for the indigenous 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," he 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.

"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"

Rajnath Singh credited 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 reform in defence planning, finance, and innovation. "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," he added.

Addressing the larger geopolitical context, Defence Minister mentioned the rising global military expenditure reaching $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 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 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, Rajnath 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 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.

Defence Spending should be termed as Economic Investment with Multiplier Impact: Defence Minister

The Defence Minister 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, 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.

Rajnath Singh 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," Defence Minister stated. He urged the DAD to incorporate this mindset into their planning, budgeting and decision-making systems.

Rajnath Singh spoke extensively about the transformation in public procurement through Government e-Marketplace (GeM), which has facilitated transparency and private sector engagement. He noted that the Ministry of Defence has procured goods and services worth over Rs 2 lakh crore through GeM till FY 2024-25, and called upon Integrated Financial Advisors (IFAs) and Competent Financial Authorities (CFAs) to maximise its use to ensure transparency and efficiency.

"Our effort is to ensure that decisions are taken swiftly so that we can begin manufacturing larger engines right here in India"

The Defence Minister appreciated the rollout and impact of the SPARSH (System for Pension Administration – Raksha) platform, which has integrated over 32 lakh defence pensioners under a transparent, faceless pension delivery system. "Crores of rupees are disbursed through SPARSH every month. When I see such systems working for our veterans, it reaffirms that our strength lies not just in budget figures, but in our gratitude towards their sacrifice," he underlined while firmly stating that caring for veterans is a duty, not a favour.

Rajnath Singh also referred to upcoming digital initiatives such as the Comprehensive Pay System and Centralised Database Management System, which will simplify pay & 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.

Defence Minister 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.

Rajnath Singh emphasised 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 emphasized.

The Defence Minister also congratulated the Defence Secretary & CGDA for achieving full utilisation of the capital budget in the previous financial year, and expressed confidence that the department would maintain the same fiscal discipline going forward. He stressed that financial planning should focus not only on budget growth, but also on efficiency-led growth, ensuring the right deployment at the right time for the right objective.

"Let us all pledge to remain alert, agile, and adaptive so that our work remains relevant and impactful. Our responsibility is immense, and every decision we make contributes to the larger vision of national security and self-reliance," Rajnath Singh highlighted. He also commended the conference agenda, which includes sessions on Change Management, Budgeting, Internal Audit, Procurement, Industry Partnerships, and Capacity Building.

The key highlights of the event were the release of the Vision Document, Mission Statement, New Motto, second edition of the Market Intelligence Report 2025 and Revised Defence Accounts Code.

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 A.P. Singh, Defence Secretary Rajesh Kumar Singh, Secretary Department of Defence R&D and Chairman DRDO Dr Samir V. Kamat, Financial Adviser (Defence Services) S.G. Dastidar, and Controller General of Defence Accounts Dr Mayank Sharma were also present on the occasion.