Defence Minister Rajnath Singh on Monday launched the Delegation of Financial Powers to DRDO (DFP-2026), a new framework to improve the speed and efficiency of defence research and development projects. The government described the reform as a major step that will strengthen accountability, improve decision-making, and ensure the timely completion of strategic research programmes. The revised financial structure also seeks to increase cooperation between the Defence Research and Development Organisation (DRDO), industry partners, and academic institutions.

The government said DFP-2026 will give greater financial authority to different levels within the Department of Defence Research and Development. This move will allow officials to make faster decisions while managing research projects. The framework also introduces separate financial provisions for trial campaigns, testing, and evaluation activities. In addition, it allows the department to approve pre-project research and development initiatives, which can help prepare projects before their formal launch.

The revised structure also separates financial powers for different categories of grants. These include grants-in-aid for extramural research projects, Defence Innovation Accelerator Centres of Excellence, and Technology Development Fund projects. The government believes this clear division of financial responsibilities will make project management more organised and improve the overall implementation process.

Speaking at the launch, Rajnath Singh said the new framework would help speed up the production and induction of defence systems, platforms, and technologies into the armed forces. The government expects the revised financial powers to reduce delays in research activities and help deliver important defence technologies at a faster pace.

However, some experts believe the impact of the new framework may remain limited to smaller research projects. Former Financial Adviser (Acquisition) in the Ministry of Defence Amit Cowshish, explained that the delegated financial powers mainly cover smaller research and development initiatives undertaken by the services.

"These are small projects that entail R&D, which are funded by the services from the revenue budget, and which are undertaken by their indigenisation directorate," former Financial Adviser (Acquisition) in the Ministry of Defence Amit Cowshish told Business Standard.

Cowshish also pointed out that these financial powers will continue to operate within the existing financial rules. He said all approvals will still depend on the availability of funds and compliance with government regulations governing expenditure.

"All these financial powers are subject to two things: availability of funds and compliance with the existing rules and regulations governing expenditure," he added.

He also suggested that the reform is unlikely to bring a major change to India's larger strategic defence research and development programmes. According to his assessment, the revised framework mainly supports smaller projects rather than the country's biggest defence initiatives.

Despite these observations, the government remains confident that DFP-2026 will improve the pace of defence innovation. It believes the framework will help researchers move projects more quickly from the development stage to production and finally into service with the armed forces. Officials also expect the reform to encourage stronger partnerships with private industry and academic institutions, leading to better technological development and greater support for indigenous defence capabilities.

Several senior defence officials attended the launch event in New Delhi. These included Chief of Defence Staff General NS Raja Subramani and Defence Secretary Rajesh Kumar Singh. Their presence highlighted the importance of the new financial framework for India's defence research ecosystem. The government sees DFP-2026 as an important administrative reform that will strengthen research management, improve coordination, and support the faster delivery of advanced defence technologies to the country's armed forces.