Rajnath Singh Urges Defence Accounts Department to Become Enablers of Military Efficiency and Economic Growth

At the Controllers’ Conference 2025 held in the national capital, Defence Minister Rajnath Singh emphasised the critical role of the Defence Accounts Department (DAD) in bolstering the operational effectiveness and financial agility of India’s Armed Forces.

Addressing top defence officials and financial administrators, Singh called for a paradigm shift in how the department functions, urging it to evolve from mere financial auditors to dynamic enablers of strategic progress.

 

Reflecting on the success of Operation Sindoor, Singh said India’s defence sector had entered a new phase of respect and recognition globally, driven by indigenous production and technological self-sufficiency.

He noted that India’s increasing capability to produce its defence equipment had sparked global interest and growing export potential.

“From Controllers to Catalysts”

In his address, Singh made a strong case for DAD to adapt to the changing landscape, especially with growing private sector involvement in defence manufacturing.

He stressed that swift and accurate financial decisions were no longer a luxury but a necessity, as even small errors or delays could jeopardise mission-critical military readiness.

“The Defence Accounts Department must not just monitor finances but also enable operational agility. As we move toward more complex and technologically advanced systems, we need financial frameworks that support innovation, speed, and flexibility,” Singh said.

Defence as a Driver of Economic Growth

Singh linked defence investment to broader economic development, calling it a key pillar for national progress. Citing global military spending, which now stands at $2.7 trillion, he highlighted the immense opportunities for Indian defence exports.

He urged the DAD to incorporate Defence Economics into its strategic planning, especially in evaluating R&D spending and dual-use technologies that could benefit both the military and civilian sectors.

“Our vision is to manufacture major systems like large engines right here in India. This ambition begins with swift decision-making and wholehearted support from our defence ecosystem,” Singh asserted.

Promoting Innovation and Start-Up Participation

 

A major highlight of Singh’s speech was the ₹1 lakh crore Research, Development and Innovation (RDI) scheme, aimed at catalysing start-ups, MSMEs, and private enterprises in the defence sector. He urged DAD to actively support the timely disbursal of funds and flexible project execution, to ensure that innovation is not stifled by bureaucratic inertia.

 

 

The Minister also welcomed recent reforms such as the Defence Acquisition Council’s approval for capital route procurement, signalling a streamlined approach to modernising India’s military arsenal.

 

Embracing Agility and Digital Transformation

Praising DAD’s new motto — “Alert, Agile, Adaptive” — Singh emphasised the importance of internal reform and self-assessment. He warned against complacency during peacetime, stating that unpredictable global events could require sudden shifts in financial and operational planning.

 

 

“We cannot afford to treat peace as a permanent state. Our systems must be ready to respond instantly, whether that means boosting equipment production or reallocating budgets,” he warned.

 

 

Singh acknowledged the positive impact of digital platforms like Government e-Marketplace (GeM) and SPARSH, both of which have brought transparency and efficiency to defence procurement and pensions.

GeM alone has facilitated procurements worth over ₹2 lakh crore, while SPARSH now serves over 32 lakh defence pensioners with direct digital access to their benefits.

He also commended upcoming projects like the Comprehensive Pay System and Centralised Database Management System, calling them vital for modern defence governance.

Fiscal Discipline and Strategic Accountability

Recognising the DAD’s achievement in fully utilising the capital defence budget in the previous fiscal year, Singh encouraged continued focus on efficiency-driven growth and fiscal responsibility.

He praised the department’s newly released Vision Document and updated Defence Accounts Code, describing them as timely tools for institutional strengthening.

“Our duty is enormous,” Singh concluded. “Each financial decision impacts not just procurement, but the future of India’s national security and self-reliance. Let us remain alert, agile, and adaptive — committed to building a stronger, safer, and self-sufficient India.”

High-Level Participation

The conference saw participation from the Chief of Defence Staff General Anil Chauhan, the three service chiefs, Defence Secretary Rajesh Kumar Singh, DRDO Chairman and Secretary R&D Dr. Samir V Kamat, Financial Adviser (Defence Services) S G Dastidar, and Controller General of Defence Accounts Dr. Mayank Sharma — underscoring the importance of synergy between strategic leadership and financial stewardship in India’s defence architecture.