The Ministry of Defence announced new policy initiatives on September 15, 2026, through an event called VIMARSH, a forum bringing together the Defence Research and Development Organisation (DRDO) and Indian industry. Defence Minister Rajnath Singh unveiled measures aimed at helping small and medium enterprises and technology start-ups enter the defence manufacturing sector, along with a new system for sharing DRDO-created software with licensed manufacturers.
What was announced
Nine licensing agreements for technology transfer were handed over to 13 manufacturing partners. These agreements allow companies to commercially produce advanced defence systems developed by DRDO.
A new framework was launched to share DRDO-developed software source codes with licensed industries. This is intended to speed up the development of software-based defence capabilities and help manage outdated technology.
The government introduced a comprehensive policy to reduce financial and technical obstacles for small enterprises and deep-technology start-ups. This includes direct funding, incubation assistance, and dedicated access to DRDO testing facilities.
Memoranda of Understanding were signed with the Society of Indian Defence Manufacturers and Laghu Udyog Bharati to expand outreach to grassroots industry participation.
DRDO signed a contract with the Quality Council of India to implement a system called SAMAR version 2.0, designed to evaluate the manufacturing readiness of domestic defence companies.
According to the Defence Secretary, over 2,300 technology transfers have been handed to more than 1,100 industries so far. Technologies related to approximately 50 missiles developed by DRDO are now available to industry partners.
What this means for you
If you run a small defence manufacturing business or plan to start one, the new policies lower the barriers to entry through funding and testing support. Companies in emerging technology areas like drones, artificial intelligence, and cyber security now have structured pathways to develop and commercialise solutions for the defence sector. The shift towards domestic manufacturing could create jobs in defence-related production across India.