Govt Accelerates Defence R&D Push with New Funding, Start-up Policies and Industry Partnerships

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MoS Defence Sanjay Seth
File Photo: MoS Defence Sanjay Seth during East Tech 2025 in Ranchi held in September

In a major boost to India’s self-reliance drive in defence manufacturing, the government has significantly expanded research and development initiatives across public and private sectors.

In a written reply in the Rajya Sabha, Minister of State for Defence Sanjay Seth outlined a comprehensive set of reforms aimed at accelerating innovation, strengthening the domestic industry and reducing dependence on foreign technologies.

A key pillar of this push is the Development-cum-Production Partner (DcPP) model, through which DRDO is identifying capable manufacturing partners, both public and private and transferring technology to them through competitive processes. Complementing this is a major Transfer of Technology (ToT) drive, with DRDO now maintaining a network of nearly 2,000 industries capable of producing subsystems, components and complete platforms. Notably, ToT for DcPPs, Development Partners and Production Agencies is offered free of cost, further encouraging industry participation.

To expand access to innovation, the Government has made DRDO patents available to Indian industries at zero licensing fee. This step, along with the creation of Industry Interaction Groups (IIGs) in DRDO labs, aims to simplify collaboration and make advanced technologies easier to adopt.

The Ministry of Defence has also expanded financial support for high-end research. The Technology Development Fund (TDF), focused on MSMEs, start-ups, and deep-tech innovation, received a fresh corpus of Rs 500 crore, enabling the development of cutting-edge systems, including technologies validated in space missions. DRDO is also finalising a new Start-up Policy to streamline engagement and accelerate problem-specific research for defence applications.

Innovation platforms are also being strengthened. Four rounds of the Dare to Dream contest have helped tap the talent of young innovators, while DRDO’s world-class test facilities have been opened to industry through the Defence Testing Portal for easier access and greater transparency. Additionally, 15 DRDO-Industry-Academia Centres of Excellence (DIA-CoEs) are now active, driving research across 82 priority technology domains.
Significantly, 25% of the national defence R&D budget has been earmarked for industry, start-ups, and academia, enabling them to participate directly in next-generation design and development. The Ministry has also accorded Approval-in-Principle to 70 ‘Make’ projects in the last three years under DAP-2020.

There is simultaneous support for state-led ecosystems, with DRDO acting as a knowledge partner in the Uttar Pradesh and Tamil Nadu Defence Industrial Corridors, both designed to accelerate Aatmanirbharta in manufacturing.

With 148 new DRDO R&D projects sanctioned in the past three years, officials say India’s defence research ecosystem is expanding faster than ever.

Together, initiatives such as TDF, DcPP, iDEX, ToT, and the `Make’ procedures signal a decisive shift: an innovation-driven, industry-backed defence manufacturing base built to meet the needs of a technologically advanced, future-ready Indian military.

Team BharatShakti

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