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15 September 2026

DRDO Expands Start-up Access to Funding and Test Facilities, Sets Rules for Sharing Defence Software Code

New frameworks seek to lower entry barriers for MSMEs and deep-tech start-ups and allow licensed manufacturers to work with DRDO-developed source code. Technology transfers and manufacturing assessments extend the initiative from research support towards commercial production

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Key Details

The initiatives announced at VIMARSH 2026, a DRDO–industry meeting held on 15 September, address entry into defence R&D, access to public testing infrastructure, transfer of technology and the management of software-based systems.

  • Start-up and MSME support: A new framework provides direct funding, incubation assistance and dedicated access to DRDO testing facilities.

  • Source-code sharing: A standardised security framework will allow licensed industries to access source code for selected DRDO-developed software.

  • Technology transfer: Nine Licensing Agreements for Transfer of Technology were handed over to 13 manufacturing partners.

  • Manufacturing assessment: DRDO contracted the Quality Council of India to develop SAMAR 2.0, an updated system for assessing and rating defence manufacturers.

  • Industry outreach: Agreements with the Society of Indian Defence Manufacturers and Laghu Udyog Bharati seek to extend engagement beyond established defence companies.

  • Existing scale: DRDO reports transferring more than 2,300 technologies to over 1,100 industries, including technologies associated with approximately 50 missiles.


Smaller Firms Gain a Route into DRDO Infrastructure

The entry-support framework is intended to reduce two constraints facing defence start-ups and MSMEs: the cost of developing capital-intensive technologies and limited access to specialised testing infrastructure.

Direct funding and incubation could support early development, while dedicated access to DRDO facilities may allow firms to test systems against defence requirements without constructing expensive facilities of their own. This is particularly relevant to work in artificial intelligence, quantum technologies, hypersonics, directed energy, drones and cybersecurity.

The release does not specify funding ceilings, eligibility conditions, intellectual-property arrangements or application procedures. These will determine which firms can use the framework and how quickly support becomes operational.


Source-Code Access Changes the Technology-Transfer Model

DRDO has also introduced a secure framework for sharing software source code with licensed manufacturers. Conventional technology transfer may give a company the information needed to manufacture a defined system; source-code access can additionally allow authorised firms to maintain, adapt and upgrade software as operational requirements change.

This is important as defence equipment becomes increasingly software-defined. Controlled access can reduce dependence on the original laboratory for every modification and help manage technological obsolescence. It also introduces security and governance requirements covering access controls, code modification, version management, testing, cybersecurity and responsibility for faults.

The framework applies to licensee industries, not to industry generally. The release does not identify which software will be eligible or how modification and reuse rights will be allocated.


Manufacturing Readiness Enters the Assessment

The nine licensing agreements provide 13 partners with routes to manufacture DRDO-developed systems commercially. SAMAR 2.0 (System for Advance Manufacturing Assessment and Rating) will separately evaluate the manufacturing maturity of domestic defence enterprises.

Together, these measures address different stages of the commercialisation process: acquiring technology, demonstrating manufacturing capability and preparing for production. A rating system can help DRDO and procurement authorities distinguish firms that possess a technology licence from those capable of delivering reliably at the required quality and scale.

The wider policy signal is a shift from engaging industry mainly after research is complete towards involving private firms across design, development, testing, certification and manufacturing. The event also examined Development-cum-Production Partner arrangements, under which industry participates during development rather than entering only as a later-stage manufacturer.


Policy Relevance

New access for industry

What policymakers need to resolve

Funding, incubation and DRDO test facilities

Selection criteria, funding limits, intellectual-property terms and facility-access timelines will determine whether smaller firms can participate effectively.

Access to DRDO software source code

Security controls must permit authorised maintenance and upgrades while clearly assigning responsibility for modifications, testing and faults.

Technology licences and SAMAR 2.0 ratings

Manufacturing capability must connect with procurement and service-induction pathways; a licence or favourable assessment does not itself create production orders.

The common test is whether these measures can move firms from access to DRDO capabilities into dependable production and deployment, without weakening security or quality controls.


Relevant Question for Policy Stakeholders: What procurement and induction pathway will connect DRDO-supported testing, source-code access and technology licensing with timely production orders for capable start-ups and MSMEs?


Follow the Full Update Here: DRDO Announces Industry-Support and Source-Code Sharing Frameworks at VIMARSH 2026

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