New Delhi. The Defence Research and Development Organisation (DRDO) has reaffirmed its full support to micro, small, and medium enterprises (MSMEs) to strengthen indigenous defence production and research and development (R&D), aligned with the Indian government’s Aatmanirbhar Bharat (self-reliant India) vision.
This commitment was highlighted during a conclave hosted by DRDO’s Defence Technology and Test Centre (DTTC) Lucknow at its Amausi Campus on September 6, 2025. More than 100 participants from MSMEs, start-ups, and industry associations like Laghu Udyog Bharti engaged in detailed discussions focused on skill development, funding mechanisms for R&D, technical consultancy, and technology development and transfer, specifically to bolster the Uttar Pradesh Defence Industrial Corridor.
In his inaugural speech, DRDO Chairman Dr Samir V Kamat credited the DTTC as the brainchild of Defence Minister Rajnath Singh and emphasised that it is an ideal time for MSMEs to deepen their engagement in defence R&D.
The event underscored DRDO’s pledge to extend all possible assistance to MSMEs to help them become key contributors in India’s journey toward a self-reliant defence industrial base, supporting the broader vision of a developed “Viksit Bharat” by 2047.
Defence Minister Rajnath Singh praised the MSMEs and DRDO for their initiatives and their crucial role in realising Prime Minister Narendra Modi’s vision of Aatmanirbhar Bharat.
The recent surge in India’s defence production exemplifies this effort, with the sector reaching a record production value of ₹1.27 lakh crore in FY 2023-24 and achieving an all-time high defence export figure of ₹23,622 crore in FY 2024-25. This impressive growth reflects a significant shift from dependency on foreign suppliers to fostering an indigenous defence manufacturing ecosystem that enhances both national security and economic progress.
A key facilitator of this transformation is the Innovations for Defence Excellence (iDEX) initiative, launched in April 2018. iDEX fosters a vibrant ecosystem involving MSMEs, start-ups, individual innovators, and research institutions through financial grants, including up to ₹1.5 crore for developing innovative defence technologies.
For the fiscal year 2025-26, iDEX has been allocated ₹449.62 crore, including funds for its sub-scheme ADITI (Acing Development of Innovative Technologies with iDEX), which supports cutting-edge areas such as satellite communication, cyber technologies, autonomous weapons, semiconductors, artificial intelligence, quantum technologies, nuclear technologies, and underwater surveillance. ADITI provides grants of up to ₹25 crore to innovators working on critical and strategic technologies.
As of February 2025, the iDEX program opened 549 problem statements and engaged 619 start-ups and MSMEs, resulting in the signing of 430 contracts. The Ministry of Defence has also facilitated significant procurement from iDEX-affiliated start-ups and MSMEs, approving items worth over ₹2,400 crore for the Armed Forces and sanctioning projects exceeding ₹1,500 crore for further development to strengthen India’s defence capabilities.
In summary, the DRDO and Ministry of Defence actively empower MSMEs through initiatives like the DTTC conclave, policy support, funding programs such as iDEX and ADITI, and direct procurement to drive India’s self-reliance in defence production, technology innovation, and strategic capabilities.
This comprehensive approach is pivotal to advancing India’s defence industrial corridor development and fulfilling the national objectives of Aatmanirbhar Bharat and a developed India by 2047.
