Rajnath unveils measures to boost MSME, start-up participation in defence sector

at 2:10 pm

New Delhi, Sep 15 (NVI): Defence Minister Rajnath Singh on Tuesday unveiled a slew of policy initiatives aimed at lowering technical and financial entry barriers for MSMEs and deep-tech start-ups and launched a framework for sharing DRDO-developed software source codes with licensed industries.

The initiatives were announced at ‘VIMARSH 2026’, a DRDO-Industry Synergy Meet held here, as the government seeks to deepen private sector participation in defence research, development and manufacturing.

Nine Licensing Agreements for Transfer of Technology (LAToTs) were handed over to 13 manufacturing partners to enable commercial production of advanced defence systems.

Strategic MoUs were also exchanged with the Society of Indian Defence Manufacturers (SIDM) and Laghu Udyog Bharati (LUB) to expand industry outreach and promote greater participation at the grassroots level.

The Defence Research and Development Organisation (DRDO) also signed a contract with the Quality Council of India for System for Advance Manufacturing Assessment and Rating (SAMAR) version 2.0 to benchmark the manufacturing maturity of domestic defence enterprises.

Addressing the gathering, Singh said DRDO-industry collaboration should extend beyond production to the entire value chain, including research, design, testing, certification and manufacturing.

He called for integrating MSMEs and start-ups as an integral part of the defence supply chain alongside large industries to transform India into a global hub for defence 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,” Singh said.

He said the goal of ‘Viksit Bharat’ was not merely to build an economically strong nation but also a technologically self-reliant, socially inclusive, environmentally sustainable and strategically secure country.

“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,” the defence minister said.

Singh highlighted reforms undertaken in the defence sector in recent years, including Positive Indigenisation Lists, the ‘Make in India’ initiative, iDEX and ADITI, besides the decision to allocate 25 per cent of the defence R&D budget to the private sector.

He said grants were being provided to start-ups through the Technology Development Fund and several technologies had already reached the production stage.

The minister said iDEX had created a new ecosystem for defence innovation by enabling start-ups to develop solutions based on actual operational requirements.

Describing MSMEs and start-ups as “new flag-bearers of innovation”, Singh said they play a key role in developing components and sub-systems for major defence platforms as well as cutting-edge technologies.

He said the new initiatives focus on industry-led research and development, funding and mentorship for MSMEs and start-ups, academia-industry collaboration and investment in emerging technologies such as artificial intelligence, quantum computing, hypersonics and directed-energy systems.

“As India is rapidly transitioning from a defence importer to an exporter, there are a number of sectors such as drone technology, AI and cyber security where the MSMEs and start-ups can accelerate innovation,” Singh said.

He urged MSMEs to focus on quality, timely delivery, innovation and global standards while expanding partnerships with large companies.

Speaking at the event, Defence Secretary and DRDO Chairman Rajesh Kumar Singh said VIMARSH 2026, themed ‘Varta se Vikas’, was aimed at aligning commercial innovation with national defence preparedness and integrating private sector capabilities into the core defence ecosystem.

He said the forum sought to move the defence sector away from a transactional buyer-seller relationship towards a collaborative technology ecosystem.

Rajesh Kumar Singh said more than 2,300 technology transfers had so far been handed over to over 1,100 industries, benefiting MSMEs and expanding the country’s manufacturing base.

He added that DRDO-developed technologies related to around 50 missiles had been made available to industry to encourage greater participation.

A book titled ‘Defence Systems for Resilient Bharat – Advancing Aatmanirbharta in Defence’, documenting major defence systems developed by DRDO’s technology clusters between 2014 and 2026, was also released.

Guidelines for Human Resource Outsourcing Service Contracts in DRDO were also launched at the event.

The meet was attended by more than 250 defence industry leaders, representatives of industry chambers, senior civil and military officials and DRDO scientists. Secretary, DPIIT also participated in the event.

During technical sessions, DRDO’s technological clusters presented roadmaps covering aeronautical systems, missiles, armaments, microelectronics and naval systems.

Senior officials from DRDO, the Department of Defence Production and the armed forces also discussed measures to accelerate technology absorption, optimise Development-cum-Production Partner models and facilitate faster induction of indigenous technologies into active service.—(NVI)