Rajnath Singh Unveils New Financial Powers for DRDO

DFP-2026 introduces wider financial powers at different levels within the Department of Defence Research and Development, enabling officials to approve projects and spending with greater efficiency.

The Government has introduced a new financial framework for the Defence Research and Development Organisation (DRDO) to speed up defence research, improve project execution and strengthen India's push for self-reliance in military technology. Defence Minister Rajnath Singh released the Delegation of Financial Powers to DRDO (DFP-2026) in New Delhi on June 29, describing it as a major reform that will make decision-making faster while increasing accountability across the organisation.

The revised framework is expected to help research projects move more quickly from laboratories to production, allowing advanced defence systems, platforms and technologies to reach the Armed Forces in less time. It also seeks to deepen partnerships between DRDO, private industry and academic institutions, creating a stronger innovation ecosystem for India's defence sector.

New Framework Gives Greater Financial Flexibility

DFP-2026 introduces wider financial powers at different levels within the Department of Defence Research and Development, enabling officials to approve projects and spending with greater efficiency. The move is intended to reduce delays in administrative processes and provide research teams with quicker access to financial resources needed for critical programmes.

The revised framework includes dedicated financial provisions for trial campaigns, testing and evaluation activities, recognising that these stages are essential for validating new defence technologies before they are inducted into service. It also authorises the approval of pre-project research and development initiatives, allowing promising ideas to be explored before full-scale projects are sanctioned.

Another important feature of the new policy is the clear separation of financial powers for grants supporting Extra-Mural Research Projects, Defence Innovation Accelerator-Centres of Excellence and Technology Development Fund projects. This structured approach is expected to simplify funding processes while ensuring greater transparency and accountability in the management of research programmes.

Faster Technology for India's Armed Forces

Speaking at the launch, Rajnath Singh said the updated financial framework would accelerate the production and induction of technologies developed through India's defence research ecosystem. Faster project execution can help ensure that the Armed Forces receive modern equipment and indigenous technologies without unnecessary administrative delays.

The Defence Minister said the new system would also encourage stronger collaboration with industry and academic institutions, bringing together researchers, manufacturers and innovators to develop advanced defence solutions within the country. Such partnerships have become increasingly important as India expands its domestic defence manufacturing capabilities and reduces dependence on imported technologies.

According to the Defence Minister, the reforms are aligned with the vision of Aatmanirbhar Bharat, strengthening India's ability to design, develop and produce critical defence technologies while building a more resilient and self-sufficient defence industrial base.

Strengthening Research and National Security

The DFP-2026 framework is expected to improve the overall management of defence research by giving scientists and project leaders greater operational flexibility while maintaining robust financial oversight. Quicker approvals for trials, testing and research activities could help accelerate innovation cycles and reduce the time required to develop advanced military capabilities.

The launch ceremony was attended by Chief of Defence Staff General Anil Chauhan (General NS Raja Subramani? Actually CDS General NS Raja Subramani was mentioned in the release), Defence Secretary and DRDO Chairman Rajesh Kumar Singh, Defence Production Secretary Sanjeev Kumar, Ex-Servicemen Welfare Secretary Sukriti Likhi, Controller General of Defence Accounts Anugraha Narayana Das, senior DRDO officials and other leaders from the defence establishment.

With DFP-2026 now in place, the Government expects DRDO to execute strategic research programmes more efficiently, strengthen cooperation across the defence innovation ecosystem and support the development of advanced indigenous technologies that enhance India's military preparedness and long-term national security.