In his address to the members of 56th Course and Faculty of National Defence College, the President said that emergence of Asia as the new 'centre of economic power' has gradually shifted the centre of gravity of the world financial power from the West to the East.
"Global war on terror and threat to the nation states from terrorists are likely to be another aspect which will take time and energy of the world community.
Speaking about the multi-party democratic system like India, he said various departments of the state must understand the strengths and limitations of those organs.
"All wings of the State - the political leadership, the civil leadership and the armed forces need to strategise in a manner so as to enhance our defence capabilities and project our strengths effectively," he said.
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He said the role of the armed forces has also expanded far beyond traditional military matters with revolutions in military affairs and globalisation.
In his address, the president spoke about the numerous challenges being posed in the context of today's global environment because of changing dynamics.
"The astonishing pace at which events have unfolded in the recent past could not have been foreseen even a decade earlier. Each country is guided in its actions by its national interests and objectives.
"The relationships are constantly changing and unless a country understands and adjusts itself to the changes that are taking place around the world, its own security could be seriously endangered," he said.
"This adds to the challenges created by changing power equations. The concept of security has also undergone a major change. Security is no more confined to preservation of territorial integrity alone.
"It also encompasses economic, energy, food, health, environmental and all other dimensions of national well being. It is thus a comprehensive concept including all elements of national power. Intensive research and quality analysis in all fields and disciplines is thus a prerequisite which calls for a holistic approach to studies across a vast spectrum of disciplines.