DRDO Unveils Initiatives To Expand MSME, Deep-Tech Startup Participation In Defence Ecosystem

New Delhi, Sept 16 (KNN) Defence Minister Rajnath Singh on Tuesday unveiled a set of initiatives aimed at expanding MSME and deep-tech startup participation in India’s defence ecosystem, including direct funding, incubation support and dedicated access to DRDO testing facilities.

The initiatives were announced at ‘VIMARSH 2026’, a DRDO-Industry Synergy Meet, and are designed to reduce technical and financial entry barriers while integrating smaller enterprises more closely into the defence supply chain.

Software, Technology Transfer Initiatives

DRDO launched a standardised, secure framework for sharing software source codes with licensed industries to support software-defined defence capabilities and obsolescence management, reported ANI.

It also handed over nine Licensing Agreements for Transfer of Technology (LAToTs) to 13 manufacturing partners for commercial production of defence systems.

Strategic MoUs with the Society of Indian Defence Manufacturers (SIDM) and Laghu Udyog Bharati (LUB) aim to expand industry outreach and grassroots participation. 

DRDO also signed a contract with the Quality Council of India for SAMAR 2.0 to assess and benchmark the manufacturing maturity of domestic defence enterprises.

Push For MSMEs In Defence Supply Chains

Singh said DRDO-industry collaboration should cover the full defence innovation cycle, including research, design, testing, certification and production. 

He called for greater integration of MSMEs and startups into defence supply chains, particularly in AI, drones, cybersecurity, quantum computing, hypersonics and directed-energy systems.

He highlighted initiatives such as Positive Indigenisation Lists, Make in India, iDEX, ADITI and allocation of 25 percent of the defence R&D budget to the private sector. He said the Technology Development Fund provides grants to startups, while iDEX supports solutions based on operational requirements.

Over 2,300 Technology Transfers To Industry

Defence Secretary and Secretary, Department of Defence R&D and Chairman, DRDO Rajesh Kumar Singh said more than 2,300 Technology Transfers (ToTs) have so far been handed over to over 1,100 industries.

He said technology transfers had enabled parallel production lines to meet defence requirements while expanding opportunities for MSMEs. Technologies related to around 50 DRDO-developed missiles have also been made available to industry.

VIMARSH 2026, themed ‘Varta se Vikas’, was designed to strengthen collaboration between DRDO, private industry and emerging deep-tech companies and move the defence ecosystem beyond a buyer-seller relationship towards technology co-development.

Focus On Faster Technology Absorption

Technical sessions covered technology roadmaps for aeronautical systems, missiles, armaments, microelectronics and naval systems. DRDO headquarters also outlined measures to simplify compliance, speed up testing-facility access and reduce licensing timelines.

A high-level panel of DRDO, Department of Defence Production and Armed Forces representatives discussed technology absorption, Development-cum-Production Partner models and faster induction of indigenous technologies.

(KNN Bureau)