The Government of India has detailed a series of initiatives aimed at strengthening research and development in the defence manufacturing sector, outlining expanded funding, new collaboration mechanisms and broader industry access to defence technologies.
According to the statement, the Defence Research and Development Organisation (DRDO) has intensified engagement with private industry by expanding the Development cum Production Partner and Production Agency models, which involve competitively selecting manufacturing partners and transferring technology to meet defence production requirements. DRDO has built a network of about 2,000 industries capable of producing sub-systems and systems, and offers technology transfers at zero fee for approved partners.
The statement said that DRDO has also opened its patents for free use by Indian industries. Several research test facilities across 24 laboratories have been made available through the Defence Testing Portal to allow companies to evaluate systems under standardised procedures. Industry Interaction Groups have been established in laboratories to streamline communication with manufacturers.
Funding-support mechanisms have been strengthened through the Technology Development Fund (TDF) scheme executed by DRDO. The scheme has supported the development of 26 technologies, including two systems flown on a PSLV mission. An additional INR 5 billion has been allocated to the TDF corpus with a focus on deep technology. A new policy is under formulation to simplify collaboration with start-ups, while four rounds of the Dare to Dream innovation challenge have been completed to identify technologies with potential defence applications.
The Government said that 25 percent of the defence R&D budget has been opened to industry, start-ups and academic institutions following the Union Budget 2022–23 announcement. DRDO is also supporting extramural research programmes across academic institutions to build capability in critical technology areas, and has established 15 DRDO–Industry–Academia Centres of Excellence that are operating across 82 research verticals.
The statement added that DRDO is supporting the Uttar Pradesh and Tamil Nadu Defence Industrial Corridors as a knowledge partner. Under the “Make” procedure of the Defence Acquisition Procedure 2020, a total of 70 projects across Make-I, Make-II and Make-III categories received Approval-in-Principle in the three years up to March 2025. DRDO sanctioned 148 new R&D projects in the same period.
Budget data showed actual expenditure under the Department of Defence R&D at INR 205.86 billion in 2022–23, INR 229.28 billion in 2023–24 and INR 246.97 billion in 2024–25. Budget estimates for 2025–26 allocate INR 268.17 billion to the department.
DRDO is India’s primary defence research agency, responsible for developing systems, technologies and infrastructure for the country’s armed forces.
