India’s defence sector is moving towards a broader collaborative industrial model, with the government seeking to bring micro, small and medium enterprises (MSMEs), deep-tech start-ups and private manufacturers deeper into the research, development and production ecosystem, the Defence Ministry reported.

At the DRDO-Industry Synergy Meet VIMARSH 2026 in the national capital, Union Defence Minister Rajnath Singh on Tuesday unveiled a series of initiatives aimed at reducing entry barriers, expanding technology access and accelerating the development of indigenous defence capabilities.

The new initiatives announced at the September 15 event are designed to make it easier for smaller companies and emerging technology firms to participate in defence projects.

According to the Ministry, the framework seeks to reduce both technical and financial barriers by providing direct funding, incubation support and dedicated access to the Defence Research and Development Organisation (DRDO) testing facilities.

Such support can help companies with innovative technologies that lack the infrastructure, funding or certifications needed to work with the defence sector.

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MoD added that particular attention is being given to deep-tech start-ups working in areas such as artificial intelligence, drones, cyber security, quantum technologies, hypersonics and directed-energy systems.

The Defence Ministry said the new policy measures are intended to promote industry-led research and development, strengthen mentorship and funding support, and encourage greater collaboration between academia and industry.

“The objective is to develop a wider defence supply chain in which MSMEs can contribute not only to components and sub-systems but also advanced technologies,” the ministry added.

MSMEs as part of the defence supply chain

The Defence Minister described MSMEs and start-ups as important drivers of innovation and key contributors to the Aatmanirbhar Bharat mission. Smaller firms often supply specialised components, subsystems and niche technologies that are essential to larger defence platforms.

Rajnath Singh said, “Their integration into the defence supply chain must take place alongside large companies, rather than outside the main industrial structure. This would create opportunities for technology partnerships, subcontracting, joint development and manufacturing expansion.”

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

He added that India’s transition from a major defence importer towards an exporter is creating opportunities in sectors such as drone technology, artificial intelligence (AI) and cyber security. MSMEs and start-ups, the Defence Minister said, can play an important role in accelerating innovation in these fields.

DRDO’s secure software source-code framework

A standardised and secure framework for sharing DRDO-developed software source codes with licensee industries was also launched at VIMARSH 2026. The framework is intended to strengthen software-defined defence capabilities and help industries manage technological obsolescence more effectively.

Access to relevant source codes can allow licensee companies to update, maintain and adapt systems more efficiently, while the standardised process is expected to ensure that sensitive defence information is shared under appropriate security safeguards.

The initiative reflects the growing importance of software in modern military platforms, where regular upgrades and integration of new capabilities are increasingly essential to maintaining operational effectiveness.

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Nine technology-transfer agreements

Nine Licensing Agreements for Transfer of Technology, or LAToTs, were handed over to 13 manufacturing partners in the presence of the Defence Minister. The agreements will enable the commercial production of advanced systems developed by DRDO.

The Ministry of Defence (MoD) also formally exchanged a strategic memorandum of understanding with the Society of Indian Defence Manufacturers and Laghu Udyog Bharati. These agreements are aimed at expanding outreach to industry and encouraging greater participation by enterprises at the grassroots level.

According to the PIB release, DRDO also signed a contract with the Quality Council of India for version 2.0 of the System for Advanced Manufacturing Assessment and Rating, known as ‘SAMAR‘. The system will assess the manufacturing maturity of domestic defence companies, helping identify areas for improvement in production capability, quality systems and industrial preparedness.
From production to the full value chain

Rajnath Singh said collaboration between DRDO and industry should not remain restricted to production. He called for cooperation across the entire defence 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 this broader partnership would be essential if India is to become a global hub for defence manufacturing. Instead of operating through a limited buyer-seller relationship, the ecosystem must develop into one based on co-development, technology absorption and long-term industrial collaboration.

Target of self-reliance by 2047

Rajnath Singh linked the new initiatives to the larger national objective of building a developed and self-reliant India. He said the vision of Viksit Bharat extends beyond economic growth and includes technological independence, social inclusion, environmental sustainability and strategic security.

“By 2047, we must achieve ‘Aatmanirbharta’ in critical technologies, a significant increase in indigenous content, multi-fold growth in defence exports, and a robust presence for India in global supply chains,” he said.

He also highlighted several reforms introduced in recent years to reduce India’s dependence on imported defence equipment. These include Positive Indigenisation Lists, the Make in India programme, the Innovations for Defence Excellence initiative, the ADITI scheme (Acing Development of Innovative Technologies with iDEX) and the decision to allocate 25% of the defence research and development budget to the private sector.

Start-ups are also receiving grants through the Technology Development Fund, while iDEX has created a platform through which companies can develop solutions based on the operational requirements of the armed forces.

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DRDO’s expanding technology transfers

Defence Secretary, Secretary of the Department of Defence R&D and DRDO Chairman Rajesh Kumar Singh said VIMARSH 2026 was organised around the theme “Varta se Vikas”, or “Dialogue for Development”.

He said the meet was designed to connect commercial innovation with national defence preparedness and to systematically bring private-sector capabilities into the core of the defence ecosystem. According to him, the forum aims to transform national security cooperation from a transactional buyer-seller arrangement into a collaborative and co-created technology ecosystem.

Rajesh Kumar Singh said more than 2,300 technology transfers had so far been handed over to over 1,100 industries. He added that technologies relating to approximately 50 DRDO-developed missiles had been made available to industry to encourage wider participation.

“The expansion of technology transfer has not only facilitated the establishment of parallel production lines to meet the Defence Forces’ requirements, thereby directly benefiting MSMEs, but has also helped alleviate the constraints that previously hindered a limited manufacturing base,” he said.

Focus on faster induction

Technical sessions at the event examined roadmaps prepared by DRDO’s technological clusters in aeronautical systems, missiles, armaments, microelectronics and naval systems. DRDO headquarters also presented measures aimed at simplifying procedural compliance, speeding up access to facilities and reducing licensing timelines. These steps are intended to address some of the delays that companies face while moving from technology development to testing, certification and production.

A high-level panel comprising representatives of DRDO, the Department of Defence Production and the armed forces discussed ways to speed up technology absorption, improve Development-cum-Production Partner models and ensure that indigenous technologies are inducted into active service more quickly.

A book titled Defence Systems for Resilient Bharat – Advancing Aatmanirbharta in Defence was released during the event. The compilation documents major defence systems developed by DRDO’s technology clusters between 2014 and 2026.

Guidelines for Human Resource Outsourcing Service Contracts in DRDO were also issued. The guidelines cover the preparation of service specifications, selection of service providers, contract administration, performance monitoring and compliance with contractual and statutory requirements across DRDO laboratories.

More than 250 defence industry leaders, representatives of industry chambers, senior civil and military officials and DRDO scientists attended VIMARSH 2026. The participation of the Department for Promotion of Industry and Internal Trade further underlined the government’s effort to connect defence manufacturing with the wider industrial and start-up ecosystem.

During the address, Rajnath Singh also added that technological self-reliance must become part of India’s national character. “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.