The Prime Minister said that India's Armed Forces, which represent the world's largest democracy, were second to none in professionalism, valour, commitment, service and duty.
Adding to it he said that the Armed Forces have always vindicated the faith and confidence that people of India placed in them, whether it is for our nation's security or for relief in times of natural calamities.
He thanked the Armed Forces for their extraordinary service to the people during the floods in Jammu and Kashmir and the cyclone on the East Coast.
He also paid tribute to the tradition and training that inculcated the highest ideals and professional capabilities in India's Armed Forces saying that the nation's trust was the biggest strength of our Armed Forces.
The Prime Minister further noted that the world was looking at India with renewed interest, confidence and excitement and there was a universal current of expectation that India would emerge not only as one of the poles of the global economy, but also as one of the anchors of regional and global security.
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Prime Minister Modi also emphasized that an atmosphere of peace and security was essential to enable India to achieve its goals of economic development. For this purpose, he said, his Government has focused on creating a favourable external environment and on strengthening India's security.
He further outlined India's key strategic and security challenges and priorities, and also observed that in addition to the familiar challenges, India had to be prepared for a changing world, which demanded new thinking on the part of the country with regard to it's economic, diplomatic and security policies.
"Beyond the immediate, we are facing a future where security challenges will be less predictable; situations will evolve and change swiftly; and, technological changes will make responses more difficult to keep pace with. The threats may be known, but the enemy may be invisible. Domination of cyber space will become increasingly important. Control of space may become as critical as that of land, air and sea. Full scale wars may become rare, but force will remain an instrument of deterrence and influencing behavior, and the duration of conflicts will be shorter," said Prime Minister Modi.
He also assured the Armed Forces of his commitment to provide adequate resources to ensure full defence preparedness, overcome shortages and meet modernization needs.
He asked the defence establishment, including the Armed Forces, to reform procurement processes as also suggest corrective measures to avoid delays in domestic development and production of defence equipment.
The Prime Minister further urged the Armed Forces to focus on efficiency and economy in the use of resources and the country's military assets, by greater integration and sharing of resources among the Services and draw up long term acquisition plans keeping in view the availability of resources, future operational requirements and technology trends.
"We should remember that what matters is capability of the force. When we speak of Digital India, we would also like to see a Digital Armed Force," He added asking the Services to give serious thought to upgrade technological skills for effective projection of power by men.
He observed that the most important task was to transform the defence forces for which he called for an increased jointness and urged the three wings of the Services to work as a team all the way from the lowest levels of the Services to the top, and suggested a number of practical steps to achieve that goal.
He also pressed upon the need that the Commanders Conferences should be organized alternately on sea, in forward Army camps and at air bases, and not just in Delhi, assuring the Commanders that he would continue the practice that he had started of meeting the three Chiefs at least once a month.
Outlining his vision of expanding domestic defence industrial base, he stressed upon the important role that the Services, as users, can play in this, both by committing to targets for domestic procurement and participating in innovation and improvements in domestically produced equipment.
The Prime Minister also mentioned that he attached the highest priority to the welfare of Armed Forces personnel, both during and after their service careers and assured the Commanders that he would do everything to fulfill the promises made on One Rank One Pension; improving service conditions; and, creating better safety nets and opportunities for services after retirement.