Defence Minister Rajnath Singh on Thursday unveiled the Delegation of Financial Powers to Defence Services (DFPDS-2026), a major reform aimed at strengthening the operational efficiency of India’s Armed Forces. The updated framework grants enhanced financial authority for revenue-based procurement worth over Rs 1.25 lakh crore annually.

Sharing the development on X, Rajnath Singh congratulated the Ministry of Defence and the Armed Forces for receiving expanded procurement powers under the revised policy. He stated that the move would help commanders take quicker decisions on critical operational requirements while improving overall combat preparedness.

The Defence Minister said the revised financial framework is designed to support faster procurement processes and reduce delays in acquiring essential equipment and services. He also emphasized that the policy would encourage greater research and development within India’s defence ecosystem, ultimately lowering dependence on foreign Original Equipment Manufacturers (OEMs).

According to Singh, the initiative will significantly contribute to the government’s push for self-reliance in defence manufacturing by increasing opportunities for Indian private companies, startups, and MSMEs. He further noted that the financial powers related to works and infrastructure projects have been doubled, enabling quicker execution and timely completion of defence-related construction and modernization activities.

An official release stated that the enhanced delegation of powers for indigenisation and defence R&D has been substantially increased to support the Aatmanirbhar Bharat mission. The revised system will allow procurement exceeding Rs 1.25 lakh crore through the revenue route based on current budgetary allocations. The new framework also provides significantly higher special financial powers to Army, Navy, and Air Force commanders for urgent operational requirements. In addition, the total expenditure ceiling for emergency procurement has been increased by 100 percent.

To improve coordination between the services, the updated policy introduces provisions for joint procurement through a lead service model. This mechanism grants higher delegated powers than regular procurement systems and is expected to streamline acquisition processes across the Armed Forces. The Ministry of Defence has also introduced several new Competent Financial Authorities to decentralize the procurement of goods and services, allowing faster approvals at multiple levels.

Officials noted that financial powers were last revised in 2021, and the latest update became necessary due to the expansion of force requirements, rising operational costs, and higher budgetary allocations. Combined with the revised Defence Procurement Manual issued in October 2025, the DFPDS-2026 is expected to accelerate defence acquisitions and ensure timely availability of critical resources for the military. Several senior defence officials attended the launch event, including Chief of Defence Staff General NS Raja Subramani, Army Chief General Upendra Dwivedi, Navy Chief Admiral Krishna Swaminathan, Defence Secretary Rajesh Kumar Singh, and other top officials from the Ministry of Defence and the Armed Forces.