Global demand for Indian defence products rises post Operation Sindoor, says Defence Minister

Defence Minister Rajnath Singh today stated that the valour displayed and the demonstration of domestic equipment during Operation Sindoor has gained newfound respect for India in the world.

During his address at the Controllers’ Conference of the Defence Accounts Department (DAD), which started here today, Singh while emphasizing on the department’s critical role in strengthening the operational readiness and financial agility of the Armed Forces, said that capability of the domestic equipment during Operation Sindoor has further increased the global demand for the indigenous products.

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“The world is looking at our defence sector with new respect. A single delay or error in financial processes can directly affect operational preparedness,” he said. He also called on the DAD to evolve from a ‘controller’ to a ‘facilitator’ in sync with increasing participation of the private sector in defence.

“Most of the equipment we once imported is now being made in India. Our reforms are succeeding because of the clarity of vision and commitment at the highest level,” he added.

Speaking about the rising global military expenditure, Singh said as per Stockholm International Peace Research Institute it has reached $2.7 trillion in 2024. He went on to add that this increased expenditure had opened up tremendous opportunities for India’s indigenous defence industries.

Suggesting that the industries in India must be prepared for the global demand shift and play a larger role in exports and innovation, Singh said, “Our effort is to ensure that decisions are taken swiftly so that we can begin manufacturing larger engines right here in India and that this journey begins with the hands of Indians,” he added.

Highlighting the increasing strategic and economic significance of the defence sector, the defence minister called for a shift in perception from defence spending as mere expenditure to an economic investment with multiplier impact.

“Until recently, defence budgets were not seen as part of the national economy. Today, they are growth drivers,” he added. He mentioned that India, along with the rest of the world, is entering a new phase of re-armament, marked by capital-intensive investments in the defence sector. He urged the department to incorporate Defence Economics in their planning and assessments, including social impact analysis of R&D projects and dual-use technologies.

The Raksha Mantri also referred to the recently launched Research, Development and Innovation (RDI) Scheme with a budget of Rs 1 lakh crore, which prioritises defence sector innovation and procurement of high-end technology.

“Peace time is nothing but an illusion. Even during periods of relative calm, we must prepare for uncertainty. Sudden developments can force a complete shift in our financial and operational posture. Whether it’s stepping up equipment production or adapting financial processes, we must be ready with innovative techniques and responsive systems at all times,” he added further in his address.