https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

India’s Defence Push: DRDO’s 2025 Tech Transfer Policy Spurs MSME-Led Growth in Defence Manufacturing

DRDO’s 2025 ToT policy transforms defence manufacturing with record tech transfers, MSME incentives, and export growth.
Anti-Drone Bullet
Indian Masterminds Stories

New Delhi: In a landmark move to boost private sector participation in defence, the Defence Research and Development Organisation (DRDO) has unveiled its 2025 Transfer of Technology (ToT) policy. The new framework shifts focus from public sector undertakings to active collaboration with micro, small and medium enterprises (MSMEs) and start-ups, aiming to elevate India’s self-reliance and innovation in defence production.

The policy streamlines technology transfer processes, cuts compliance burdens, and enables faster industry adoption of DRDO-developed systems, with strong emphasis on dual-use and cutting-edge military technologies.

Strategic Framework for Self-Reliance

The 2025 ToT policy establishes a simplified, automation-driven process for transferring DRDO technologies to industry. Technologies are classified into:

  • Category ‘A’ (MILTECH) – Military systems exclusive to Indian Armed Forces and government agencies.
  • Category ‘B’ – Dual-use technologies with applications beyond defence.

This classification allows targeted approaches while safeguarding security. The policy aims to fuel indigenous capability, enhance ease of doing business, and promote innovation-led manufacturing.

Record-Breaking Technology Transfers

By 2024, DRDO had issued over 2,100 Licensing Agreements for ToT, including 256 in 2024 alone. This unprecedented scale spans multiple defence domains, giving industry access to decades of R&D investment.

Dr. Chandrika Kaushik, Director General (PC&SI) at DRDO, highlighted that over 2,000 licensing agreements and 200 production licences were completed in 2024, creating a foundation for long-term private sector growth in indigenous defence manufacturing.

Financial Incentives and Industry Partnerships

The policy offers significant financial support for MSMEs and start-ups. For Category ‘A’ technologies, ToT fees are waived for Development cum Production Partners (DcPPs), Production Agencies (PAs), and other selected firms.

The Technology Development Fund (TDF) provides up to ₹50 crore per project, covering 90% of costs. Since 2018, 81 projects worth ₹350 crore have been sanctioned, developing 26 technologies and disbursing ₹150 crore.

Defence Acquisition Council’s Support

In 2024, the Defence Acquisition Council (DAC) approved proposals worth ₹1.1 lakh crore, including Future Ready Combat Vehicles, Air Defence Radars, Electronic Warfare Systems, and advanced naval platforms.

In July 2025, approvals worth ₹1.05 lakh crore were cleared for Armoured Recovery Vehicles, Integrated Inventory Systems, Surface-to-Air Missiles, and more. Significantly, 99% of these were under Buy (Indian) and Buy (Indian-IDDM) categories.

Also Read: Operation Sindoor’s Success Owes to Civil-Military Cohesion, Says Raksha Mantri Rajnath Singh at AFHQ Services Day

Boost for MSMEs and Start-Ups

MSMEs and start-ups in DRDO projects receive feeder technologies at 50% of the estimated ToT fee. Programmes like iDEX have supported nearly 300 innovators, offering up to ₹1.50 crore in grants (₹10 crore for iDEX Prime).

Over 130 private industries have joined DRDO as development partners or production agencies in the last five years, benefiting from mentorship, testing access, and market linkages.

IP Access and Hand-Holding Support

DRDO has made its patent portfolio freely available to Indian companies, alongside over 20 testing facilities and firing ranges. Free hand-holding support is provided in phases—from 15 man-days for projects below ₹50 lakh to 60 man-days for projects above ₹5 crore—ensuring smooth technology absorption.

Impact on Production and Exports

India’s defence production hit a record ₹1.51 lakh crore in FY 2024-25, up 18% from ₹1.27 lakh crore the previous year. Private sector share rose to 23%, with 28% growth, while DPSUs grew 16%.

Defence exports reached ₹23,622 crore, a 12% jump from ₹21,083 crore in FY 2023-24, solidifying India’s role in global defence markets.

Strategic Outlook

The ToT policy is more than a procedural update—it is a systemic transformation aimed at making India a global defence technology leader. By fostering private sector innovation in advanced domains like AI, quantum computing, and robotics, the policy lays the foundation for India to become a net security provider in the Indian Ocean region and a key contributor to global defence innovation.

Also Read: Indian Army Inducts BEML-DRDO’s Indigenously Developed Semi-Automatic Minefield Marker, MMME Mk-II 


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Chhattisgarh CM Calls Environmental Protection a Moral Responsibility Towards Future Generations, Urges Sustainable Development
Chhattisgarh CM Calls Environmental Protection a Moral Responsibility Towards Future Generations, Urges Sustainable Development
Punjab Govt Celebrates Mai Bhago AFPI Success; Cadets Excel in NDA and AFCAT Entrance Exams
Punjab Govt Celebrates Mai Bhago AFPI Success; Cadets Excel in NDA and AFCAT Entrance Exams
uttarakhand_police_
Uttarakhand Police Major Reshuffle: 9 IPS and 9 PPS Officers Transferred; Nivedita Kukreti Becomes IG Kumaon
Rajasthan’s Governance and Energy Agenda Strengthens as Chief Secretary Meets Coal India CMD
Rajasthan’s Governance and Energy Agenda Strengthens as Chief Secretary Meets Coal India CMD
Om Birla
IPS Officer Shobhit D Saksena Appointed DCP Outer North Delhi After Serving in Jammu and Kashmir
cm-dhami-launches-development-projects-worth-rs-96-71-crore-in-nainital-2
CM Dhami Launches Development Projects Worth ₹96.71 Crore in Nainital, Announces Key Initiatives for Bhimtal
cm yogi
UP Govt Approves Three New Cities in Agra, Bareilly and Prayagraj Under ₹225 Crore Urban Expansion Plan
MP-Police-
Madhya Pradesh Transfers 74 Police Officers, Including 8 IPS; Ayush Jakhar Promoted to ASP Jabalpur After MLA Row
ADVERTISEMENT
ADVERTISEMENT
Videos
ajay suri
When The Entire Film Crew Was At The Mercy of King Cobra
Manisha Khatri
How IAS Officer Manisha Khatri IS Turning Nashik Kumbh 2027 Into A Digital Mega City
Vikas Vaibhav
How IPS Officer Vikas Vaibhav Turned a Dream Into Bihar’s Biggest Youth Movement
ADVERTISEMENT
UPSC Stories
IFS Akshat Singhal
Cracked UPSC CSE, IFS and Engineering Services: The Inspiring Journey of Akshat Singhal While Balancing a Full-Time Job
Rajasthan's Akshat Singhal Balanced a Demanding Government Job, Multiple UPSC Attempts and Personal Sacrifices...
Bhoomika Jain UPSC CSE 2025
A First for Generations: Bhoomika Jain Clears UPSC CSE 2025 After Two Failed Attempts
Bhoomika Jain from Satna secured AIR 331 in CSE 2025 after clearing the exam in her third attempt. Read...
devangi meena
Devangi Meena: The UPSC Candidate Who Stopped Studying to Start Understanding Herself
After failing to clear Prelims three times, Devangi Meena transformed her approach, conquered self-doubt,...
CSR NEWS
NCL
NCL Signs ₹25 Lakh MoU with Singrauli Administration for Jal Ganga Sanvardhan Abhiyan Water Conservation Project
CSR initiative to build three ponds in Chitrangi block aims to boost groundwater recharge, irrigation...
DVC
DVC Donates 2 Ambulances in Koderma to Boost Rural Emergency Healthcare Services Under CSR Initiative
In collaboration with NGO Pehchan, Damodar Valley Corporation strengthens healthcare access in Jharkhand...
DFCCIL
DFCCIL MD Praveen Kumar Reviews EDFC Infrastructure, Safety, CSR and Employee Welfare During Dadri–Sahnewal Inspection
Dedicated Freight Corridor Corporation of India Limited strengthens freight operations with infrastructure...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Chhattisgarh CM Calls Environmental Protection a Moral Responsibility Towards Future Generations, Urges Sustainable Development
Chhattisgarh CM Calls Environmental Protection a Moral Responsibility Towards Future Generations, Urges Sustainable Development
Punjab Govt Celebrates Mai Bhago AFPI Success; Cadets Excel in NDA and AFCAT Entrance Exams
Punjab Govt Celebrates Mai Bhago AFPI Success; Cadets Excel in NDA and AFCAT Entrance Exams
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
ajay suri
Manisha Khatri
Vikas Vaibhav
ADVERTISEMENT
ADVERTISEMENT