DRDO unveils framework to ease MSME, start-up entry into defence R&D

Defence Minister Rajnath Singh has introduced a new framework to reduce financial and technical barriers for MSMEs and start-ups in the defence sector. The initiative includes direct funding, testing access, and standardized software sharing to boost indigenous manufacturing.
Why it matters
Lowering barriers for private enterprises is a key component of India's strategy to achieve self-reliance in defence technology.
Defence Minister Rajnath Singh on Tuesday (September 15, 2026) unveiled a set of policy initiatives aimed at lowering technical and financial barriers for MSMEs and deep-tech start-ups seeking to participate in defence research, development and manufacturing.
Unveiling the initiatives at ‘VIMARSH 2026’, a DRDO-Industry Synergy Meet, Mr. Singh said the collaboration between the Defence Research and Development Organisation (DRDO) and industry should extend beyond production to the entire technology value chain, including research, design, testing, certification and manufacturing.
The new framework provides for direct funding, incubation support and dedicated access to DRDO testing facilities for MSMEs and start-ups.
A standardised and secure mechanism for sharing DRDO-developed software source codes with licensed industries has also been introduced to accelerate software-defined defence capabilities and address technology obsolescence.
Nine Licensing Agreements for Transfer of Technology (LAToTs) were handed over to 13 manufacturing partners to facilitate commercial production of advanced defence systems.
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