SDG 9: Industry, Innovation, and Infrastructure | SDG 16: Peace, Justice and Strong Institutions
Institutions: Ministry of Defence (MoD) | Defence Research and Development Organisation (DRDO)
The Government has reinforced its strategic commitment to the Atmanirbhar Bharat mission by detailing comprehensive steps to enhance Research and Development (R&D) within the Defence manufacturing sector. The Defence Research and Development Organisation (DRDO) has accelerated the integration of private and public sector industries through the Development cum Production Partner (DcPP) model, signaling a critical shift towards collaborative defense production. This effort received a major financial impetus with an additional ₹500 Cr sanctioned towards the Technology Development Fund (TDF) Scheme, specifically targeting Deep-Tech and cutting-edge technologies to achieve self-reliance.
Further streamlining private sector engagement, the policy mandates the Transfer of Technology (ToT) for DRDO-developed systems to Indian Industries at a zero ToT fee for production purposes. This is complemented by the implementation of a policy allowing Indian industries the free use of DRDO Patents for commercialization and defense application. These financial and procedural relaxations, coupled with innovation contests like “Dare to Dream” and a forthcoming New Start-up Policy, are designed to rapidly scale R&D ambition, integrate MSMEs and startups into the national security-industrial base, and ensure strategic self-reliance in critical defense platforms.
Policy Relevance: These initiatives are of critical strategic and regulatory relevance as they formalize the integration of MSMEs and startups into the defense sector through direct, targeted R&D funding and free access to patented technology. The emphasis on Deep-Tech and the removal of the ToT fee directly accelerates the Atmanirbhar Bharat mission by bridging the gap between indigenous development and large-scale domestic manufacturing.
What is the Technology Development Fund (TDF) Scheme?→ The TDF Scheme is a program under the Ministry of Defence (MoD), executed by DRDO, designed to promote self-reliance and innovation in defense technology. It encourages the participation of public and private industries, particularly Micro, Small and Medium Enterprises (MSMEs) and Start-ups, by providing funding support for R&D projects as part of the broader Make-in-India initiative. The TDF’s enhanced corpus of ₹500 Cr aims to support technologies at higher Technological Readiness Levels (TRLs) and accelerate their transition to manufacturing.
Relevant Question for Policy Stakeholders: What metrics will the Ministry of Defence use to track the successful commercialization and deployment of the technologies developed by MSMEs and Start-ups through the enhanced TDF scheme?
Follow the full news here: Government Boosts Defence R&D