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VIMARSH 2026: Rajnath Singh unveils key DRDO initiatives to boost MSME, start-up participation in defence sector

Strategic MoUs were also formally exchanged with the Society of Indian Defence Manufacturers (SIDM) and Laghu Udyog Bharati (LUB) to expand industry outreach and foster grassroots participation.
Published By : Debadas Pradhan | September 15, 2026 3:27 PM
Rajnath Singh Unveils Major DRDO Reforms to Boost MSMEs, Startups & Defence Manufacturing

New Delhi, September 15: Defence Minister Rajnath Singh unveiled key policy initiatives during ‘VIMARSH’, a DRDO-Industry Synergy Meet, in New Delhi on Tuesday.

The initiatives include a comprehensive framework to lower technical and financial entry barriers for MSMEs & deep-tech start-ups, offering direct funding, incubation support and dedicated access to DRDO testing facilities. A standardised, secure framework for sharing DRDO-developed software source codes with licensee industries was also launched to accelerate software-defined defence capabilities and obsolescence management.

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According to the Ministry of Defence, nine Licensing Agreements for Transfer of Technology (LAToTS) were handed over to 13 manufacturing partners in the presence of Raksha Mantri to enable commercial production of state-of-the-art systems, as per the release.

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

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

In his address, the Defence Minister asserted that the DRDO-Industry collaboration should no longer be limited to production alone, but expanded across the entire value chain encompassing research, design, testing, certification, and manufacturing 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,” he said.

Rajnath Singh underlined that the goal of Viksit Bharat is not merely to build an economically strong nation, but to also make it technologically self-reliant, socially inclusive, environmentally sustainable, and strategically secure.

“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,” he said.

He enumerated the unprecedented reforms brought about in the defence sector over the past few years under the leadership of Prime Minister Narendra Modi, including the notification of Positive Indigenisation Lists, ‘Make in India’ initiative, iDEX, ADITI, and the decision to allocate 25% of the defence R&D budget to the private sector to reduce import dependence and move towards self-reliance. 

He added that grants are being provided to start-ups through the Technology Development Fund, and numerous technologies have already reached the production stage. He highlighted that iDEX has also created a new ecosystem for defence innovation, where start-ups are developing solutions based on actual operational requirements.

Describing start-ups and MSMEs as the new flag-bearers of innovation in India, Rajnath Singh stated that these industries play a pivotal role in achieving the goal of Aatmanirbhar Bharat as they develop components, sub-systems etc. for major defence systems alongside state-of-the-art technologies.

He underscored the need to integrate MSMEs and start-ups as integral parts into the defence supply chain alongside large industries, expressing confidence that the new initiatives would create fresh opportunities for industry.

The Defence Minister highlighted that the new policy initiatives focus on promoting industry-led R&D; providing funding and mentorship to start-ups and MSMEs; fostering academia-industry collaboration; and encouraging investment in futuristic technologies such as AI, quantum computing, hypersonics, and directed energy.

Rajnath Singh stated that 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 and elevate India’s technological and strategic strengths to newer heights.

“MSMEs are the backbone of the Indian economy and a critical strength of the defence ecosystem. They need to consistently focus on quality, delivery, innovation, and global standards, while expanding partnerships with large companies,” he said.

Singh emphasised that a nation that possesses its own technology holds the power to shape its own future, adding that self-reliance must become an integral part of the country’s character and attitude.

“Companies that invest in new and emerging technologies today will become the leaders of tomorrow as in future warfare, the country that leads in technology will secure the strategic advantage,” he added.

Speaking on the occasion, Defence Secretary and Secretary, Department of Defence R&D and Chairman, DRDO Rajesh Kumar Singh said VIMARSH 2026, centered on the theme ‘Varta se Vikas’, has been strategically designed to align cutting-edge commercial innovation with national defence readiness and systematically integrate private sector capabilities into the core of the defence ecosystem. This forum serves as a key vehicle for transforming the national security framework from a mere transactional buyer-seller relationship into a collaborative, co-created technology ecosystem, he said.

“The expansion of technology transfer has not only facilitated the establishment of parallel production lines to meet the Defence Forces’ requirements, thereby directly benefiting MSMEs, but has also helped alleviate the constraints that previously hindered a limited manufacturing base. Till date, over 2,300 Technology Transfers (ToTs) have been handed over to more than 1,100 industries. Currently, we have made technologies related to approximately 50 missiles, developed by DRDO, available to the industry to foster increased participation,” he added.

A book titled ‘Defence Systems for Resilient Bharat – Advancing Aatmanirbharta in Defence’, a special compilation documenting significant defence systems developed by DRDO’s technology clusters between 2014 to 2026 was also released during the event, along with the guidelines for Human Resource Outsourcing Service Contracts in DRDO.

The guidelines provide a comprehensive framework for formulation of service specifications for the procurement, selection of suitable service providers, contract administration, performance monitoring and compliance with contractual as well as statutory obligations for Human Resource Outsourcing across DRDO labs.

Secretary (Defence Production) Sanjeev Kumar, Secretary (Defence Finance) Vishvajit Sahay and Distinguished Scientist & Director General (Production Coordination & Services Interaction), DRDO Dr (Smt) Chandrika Kaushik were present on the occasion.

During the Technical Sessions, Directors General of DRDO Technological Clusters outlined technical roadmaps across Aeronautical Systems, Missiles, Armaments, Microelectronics, and Naval Systems. DRDO HQ introduced initiatives aimed at simplifying procedural compliance, fast-tracking facility access, and compressing licensing timelines.

In the High-Level Panel Discussion, senior representatives from DRDO, Department of Defence Production (DDP), and the Defence Forces deliberated on mechanisms for accelerating technology absorption, optimising Development-cum-Production Partner models, and ensuring rapid induction of indigenous technologies into active service.

As per the release, designed to strengthen the national defence-industrial framework, VIMARSH 2026 provided a structured platform to align DRDO’s technological research and emerging deep-tech startups with the established manufacturing ecosystem, creating an agile, transparent, and collaborative environment for private sector participation. 

The flagship event was attended by over 250 defence industry leaders, industry chamber representatives, senior civil and military officials and senior DRDO scientists. Secretary, DPIIT, also participated in the meet.