The Defence Ministry has doubled the financial powers of field commanders and senior military officials to enable faster procurement and project execution.
Procurement limits for Army Commanders and equivalent officers have been raised from ₹30 crore to ₹100 crore, while limits for Chiefs of Service have increased from ₹75 crore to ₹125 crore.
The revised framework also boosts funding authority for indigenisation and R&D projects, supporting India's broader push to modernise its armed forces and reduce import dependence.
Defence Ministry Doubles Financial Powers of Military Commanders
The Defence Ministry has significantly enhanced the financial powers of military commanders to speed up procurement, boost operational readiness, and support greater indigenisation in the defence sector
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Summary
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The Ministry of Defence has doubled the financial powers of field commanders to enable faster and more efficient procurement across the armed forces.
Defence Minister Rajnath Singh announced the revised financial delegation on Thursday. The enhanced powers are expected to support procurement worth ₹1.25 lakh crore in FY27. The delegation also includes increased funding authority for research and development (R&D) and import substitution initiatives.
"The enhancement in the financial powers has been made by up to 100%, and in some cases, more than double.
This will further strengthen the operational efficiency of field commanders and lead to faster conclusion of contracts and execution of projects," The Economic Times reported, citing officials.
Under the revised structure, the procurement limit for Army Commanders and their equivalents has been increased to ₹100 crore from ₹30 crore. For Chiefs of Service and equivalent authorities, the limit has been raised to ₹125 crore from ₹75 crore.
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According to reports, this is the first major revision of financial powers in five years and is expected to accelerate defence acquisitions and operational readiness.
The Economic Times, citing officials, reported that financial powers related to indigenisation and research and development have also been doubled to reduce dependence on imports.
The revised framework is also expected to encourage greater coordination among the three services, as spending limits for joint procurement programmes have been increased.
Expanding Defence Capabilities
Defence spending has risen across the world since 2022, driven by growing geopolitical tensions and evolving security challenges.
India has also stepped up defence expenditure following Operation Sindoor. In the latest Union Budget, the government allocated ₹7.85 lakh crore to the defence sector, marking a 15.19% year-on-year increase.
The latest restructuring of financial powers forms part of a broader set of reforms introduced by Defence Minister Rajnath Singh to decentralise procurement decisions and enable the armed forces to adopt new technologies more rapidly.
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Earlier this week, reports citing industry experts suggested that India is preparing a drone acquisition programme worth nearly $2 billion.
If finalised, it would become the country's largest drone procurement deal and is expected to equip the military with advanced tactical drones over the next 18 to 24 months.
In March, the Defence Ministry approved procurement proposals worth approximately ₹2.38 trillion ($24.85 billion), including transport aircraft, missile systems, and remotely piloted strike aircraft, or armed drones, although a detailed spending breakdown was not disclosed.