Rajnath Singh unveils new DRDO initiatives to boost MSMEs, deep-tech startups in defence sector

New Delhi: Defence Minister Rajnath Singh on Tuesday announced a series of new policy measures to deepen collaboration between the Defence Research and Development Organisation (DRDO) and the private sector, with a particular focus on MSMEs and deep-tech startups. The initiatives, unveiled at the VIMARSH 2026 DRDO-Industry Synergy Meet in New Delhi, are aimed at accelerating indigenous defence manufacturing, encouraging innovation and reducing dependence on imports. 

A key initiative is a new framework designed to lower technical and financial entry barriers for MSMEs and startups working in advanced technologies. The framework will provide direct funding, incubation support and dedicated access to DRDO’s testing infrastructure, enabling smaller companies to develop and validate defence technologies more efficiently. 

DRDO also introduced a standardised and secure mechanism for sharing software source codes developed by the organisation with licensed industries. The move is intended to promote software-defined defence capabilities while helping industry address technological obsolescence and sustain indigenous systems over their operational life. 

At the event, nine Licensing Agreements for Transfer of Technology (LAToTs) were handed over to 13 manufacturing partners, allowing them to commercially produce advanced defence systems. Strategic MoUs were also exchanged with the Society of Indian Defence Manufacturers (SIDM) and Laghu Udyog Bharati (LUB) to expand industry outreach and encourage wider participation from the manufacturing sector. 

Meanwhile, DRDO signed an agreement with the Quality Council of India for the System for Advance Manufacturing Assessment and Rating (SAMAR) 2.0, aimed at assessing and benchmarking the manufacturing maturity of domestic defence companies. 

Addressing industry representatives, Singh said the DRDO-industry partnership must move beyond manufacturing and cover the entire technology value chain, including research, design, testing, certification and production. He said India’s vision of Viksit Bharat involved not only economic growth but also technological self-reliance, strategic security, social inclusion and environmental sustainability. By 2047, he said, India should achieve self-reliance in critical technologies, substantially raise indigenous content, expand defence exports and secure a stronger position in global supply chains. 

Singh highlighted initiatives such as the Positive Indigenisation Lists, Make in India, iDEX and ADITI, as well as the decision to earmark 25 per cent of the defence R&D budget for the private sector. He said the Technology Development Fund was supporting startups, while iDEX had created an ecosystem where young companies could develop solutions based on the operational requirements of the armed forces. Further, Calling MSMEs and startups key drivers of innovation, Singh stressed their integration into the defence supply chain alongside major companies. He identified artificial intelligence, quantum computing, hypersonics, directed-energy systems, drones and cybersecurity as areas where private-sector innovation could strengthen India’s strategic capabilities. 

Defence Secretary and DRDO Chairman Rajesh Kumar Singh said VIMARSH 2026, themed ‘Varta se Vikas’, was aimed at transforming the defence ecosystem from a conventional buyer-seller model into a collaborative technology partnership. He said more than 2,300 technology transfers had so far been provided to over 1,100 industries, while technologies related to around 50 DRDO-developed missiles had been made available to industry. 

Apart from this, a book documenting major DRDO defence systems developed between 2014 and 2026 was also released, along with guidelines for Human Resource Outsourcing Service Contracts in DRDO. 

Notably, the event brought together more than 250 defence industry leaders, industry representatives, senior civil and military officials and DRDO scientists. Technical sessions focused on aeronautical systems, missiles, armaments, microelectronics and naval technologies, while a high-level panel discussed faster technology absorption and induction of indigenous systems into the armed forces.