Defense Minister Rajnath Singh Announces Enhanced Financial Powers to Boost Armed Forces Readiness

NEW DELHI, June 4, 2026 — Union Defense Minister Rajnath Singh congratulated the Ministry of Defense and the Armed Forces on the implementation of enhanced financial powers for revenue-related procurement under the new Delegation of Financial Powers Development Scheme 2026.

The major policy update grants financial autonomy for procurement projects carrying an annual value exceeding 1.25 lakh crore rupees. Singh highlighted that this administrative shift is a critical initiative that will directly empower field commanders, leading to much faster decision-making processes and significantly boosting the operational preparedness of the military.

The newly introduced document aims to accelerate research and development within the domestic defense sector while systematically minimizing reliance on foreign original equipment manufacturers.

Defense officials emphasize that these changes will provide long-term support for indigenization by encouraging active participation from private industry players, including micro, small, and medium enterprises and technology startups.

Additionally, the financial limits allocated for executing critical defense works projects have been doubled to facilitate rapid execution and ensure timely infrastructure completion across all military wings.