DRDO unveils measures to boost MSME, startup participation in defence R&D

New Delhi, Sep 15. Defence Minister Rajnath Singh has unveiled a series of policy initiatives aimed at lowering technical and financial barriers for micro, small and medium enterprises (MSMEs) and deep-tech startups seeking to participate in defence research, development and manufacturing.

The measures, announced at VIMARSH 2026, a DRDO-Industry Synergy Meet in New Delhi on September 15, include direct funding, incubation support and dedicated access to DRDO testing facilities for smaller technology companies.

A standardised and secure framework for sharing source codes of DRDO-developed software with licensed industry partners was also launched. The initiative is intended to accelerate the development of software-defined defence capabilities and help industry address technological obsolescence more efficiently.

Singh also handed over nine Licensing Agreements for Transfer of Technology (LAToTs) to 13 manufacturing partners, enabling them to undertake commercial production of advanced defence systems developed by the Defence Research and Development Organisation (DRDO).

Strategic MoUs were exchanged between the DRDO and the Society of Indian Defence Manufacturers (SIDM) and Laghu Udyog Bharati (LUB) to widen industry outreach and encourage greater participation by enterprises at the grassroots level.

The DRDO also signed a contract with the Quality Council of India for System for Advance Manufacturing Assessment and Rating (SAMAR) 2.0, aimed at benchmarking the manufacturing maturity of Indian defence companies.

Addressing the gathering, Singh said the partnership between DRDO and industry needed to move beyond production and cover the entire defence technology value chain, including research, design, testing, certification and manufacturing.

“DRDO possesses knowledge and technology, the industry has scale and manufacturing capability, start-ups bring innovation and agility, and the youth hold the dream of a New India. When these four forces converge and move forward together, no goal is impossible,” he said.

The Defence Minister said the objective of Viksit Bharat (Developed India) by 2047 went beyond building an economically strong country and included technological self-reliance, social inclusiveness, environmental sustainability and strategic security.

He set out the goals of achieving self-reliance in critical technologies, substantially increasing indigenous content in defence equipment, expanding defence exports and establishing a stronger Indian presence in global supply chains.

Singh highlighted the reforms undertaken in the defence sector in recent years, including the Positive Indigenisation Lists, Make in India, iDEX and ADITI, as well as the decision to earmark 25 percent of the defence R&D budget for the private sector.

He said the Technology Development Fund was supporting startups and that several technologies developed through such initiatives had already reached the production stage. The iDEX programme, he added, had created a new ecosystem in which startups were developing solutions based on actual operational requirements of the armed forces.

Describing MSMEs and startups as the “new flag-bearers of innovation”, Singh said their contribution was critical not only in developing advanced technologies but also in supplying components and sub-systems for major defence platforms.

He called for MSMEs and startups to be integrated more closely into the defence supply chain alongside large companies, particularly in emerging areas such as drones, artificial intelligence and cyber security.

The new initiatives, he said, would promote industry-led research and development, provide funding and mentorship to smaller companies, strengthen academia-industry collaboration and encourage investment in futuristic technologies such as AI, quantum computing, hypersonics and directed-energy systems.

“MSMEs are the backbone of the Indian economy and a critical strength of the defence ecosystem. They need to consistently focus on quality, delivery, innovation, and global standards, while expanding partnerships with large companies,” Singh said.

He stressed that technological self-reliance was increasingly becoming a decisive factor in national security, particularly as warfare becomes more technology-intensive.

“Companies that invest in new and emerging technologies today will become the leaders of tomorrow as in future warfare, the country that leads in technology will secure the strategic advantage,” he said.

Defence Secretary and Secretary, Department of Defence R&D, and DRDO Chairman Rajesh Kumar Singh said VIMARSH 2026, held under the theme ‘Varta se Vikas’, was designed to connect commercial innovation with national defence requirements and integrate private-sector capabilities more deeply into the defence ecosystem.

He said the forum sought to move the defence sector away from a transactional buyer-seller model towards a collaborative and co-created technology ecosystem.

Rajesh Kumar Singh said the government’s self-reliance drive had significantly expanded technology transfers from DRDO to industry. More than 2,300 technology transfers have so far been handed over to over 1,100 industries, creating parallel production capabilities and widening the manufacturing base available to the armed forces.

He added that DRDO had made technologies related to around 50 missiles available to industry to encourage greater private-sector participation.

A book titled Defence Systems for Resilient Bharat – Advancing Aatmanirbharta in Defence, documenting major defence systems developed by DRDO’s technology clusters between 2014 and 2026, was also released.

Guidelines for Human Resource Outsourcing Service Contracts in DRDO were unveiled as well. The guidelines provide a framework covering service specifications, selection of service providers, contract administration, performance monitoring and compliance with statutory and contractual requirements.

During the technical sessions, DRDO’s technological clusters presented roadmaps covering aeronautical systems, missiles, armaments, microelectronics and naval systems. DRDO headquarters also outlined measures to simplify procedural requirements, accelerate access to testing and other facilities, and reduce licensing timelines.

A high-level panel comprising senior officials from DRDO, the Department of Defence Production and the armed forces discussed ways to accelerate technology absorption, improve Development-cum-Production Partner models and speed up the induction of indigenous technologies into operational service.

More than 250 defence industry leaders, industry chamber representatives, senior civil and military officials and DRDO scientists attended the event. The Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT) also participated.

VIMARSH 2026 was aimed at creating a more integrated defence-industrial ecosystem in which DRDO’s technology base and India’s emerging deep-tech startups can connect with established manufacturers, potentially enabling faster transition of indigenous technologies from laboratories to production and, ultimately, operational deployment.