Defence Minister Rajnath Singh on Monday, 29 June released the Delegation of Financial Powers to DRDO (DFP-2026), a sweeping reform designed to accelerate strategic R&D, enhance accountability, and fast-track the induction of indigenous defence technologies into the armed forces. The revamped framework marks one of the most significant restructurings of DRDO's financial authority in recent years.

What DFP-2026 Changes

The revised framework introduces dedicated financial provisions for trial campaigns, tests, and evaluation activities — areas that had previously been constrained by centralised approval bottlenecks. It also authorises the sanctioning of pre-project R&D initiatives and introduces a clear segregation of financial powers for grants-in-aid covering Extra-Mural Research Projects, Defence Innovation Accelerator-Centres of Excellence, and Technology Development Fund (TDF) projects under their respective schedules.

Critically, the DFP-2026 devolves decision-making authority across multiple levels within the Department of Defence R&D, reducing the time lost to hierarchical approvals that have historically slowed project timelines.

What the Government Said

Rajnath Singh stated that the DFP-2026 will facilitate faster production and induction of systems, platforms, and technologies emerging from the R&D ecosystem into the Defence Forces. He added that the new framework will foster stronger collaboration with industry and academia, reinforcing the vision of Aatmanirbhar Bharat, and will contribute to enhanced self-reliance in defence technologies while strengthening the nation's overall defence preparedness.

Senior Officials Present

The release event in New Delhi was attended by Chief of Defence Staff General N.S. Raja Subramani, Defence Secretary Rajesh Kumar Singh — who also holds additional charge of Secretary, Defence R&D and DRDO Chairman — Secretary, Defence Production Sanjeev Kumar, Secretary, Ex-Servicemen Welfare Sukriti Likhi, Controller General of Defence Accounts Anugraha Narayana Das, DG, Naval Systems and Materials R.V. Hara Prasad, DG, Resources and Management Dr Ravindra Singh, and Director, Directorate of Finance and Material Management Dr Maiya Din, among other senior officials.

DRDO's Role in Make in India

The DRDO regularly transfers indigenous technologies to Indian public and private sector industries through Licensing Agreements for Transfer of Technology and the Technology Development Fund. These mechanisms empower MSMEs and startups to manufacture critical aerospace and defence equipment, directly bolstering armed forces preparedness. The DFP-2026 is expected to deepen this pipeline by removing financial friction at the project-initiation and evaluation stages.

This comes amid a broader push by the Centre to reduce dependence on foreign defence imports and scale up domestic production capacity. With the DFP-2026 now in effect, the pace at which DRDO-developed technologies reach operational deployment will be closely watched as a measure of the reform's real-world impact.