Advancements in Defence Manufacturing Sector

Summary of Defense Manufacturing Sector Initiatives

1. Research and Development (R&D) Initiatives

• The Indian government is enhancing R&D in defense manufacturing through various initiatives and partnerships with both public and private sectors.
• Development-cum-Production Partner (DCPP) Model: Implemented by the Defence Research and Development Organisation (DRDO) for identifying manufacturing agencies through a competitive process to meet production requirements and technology transfer.

2. Technology Transfer

• DRDO has developed a group of 2000 industries for the manufacturing of subsystems, systems, and equipment, offering zero Technology Transfer (ToT) fees to domestic industries for DRDO developed technologies.
• Consultation services by DRDO scientists are provided to these industries.

3. Defense Technology Fund (TDF)

• TDF aims to promote participation from public/private industries, especially MSMEs/startups, enhancing self-reliance under the 'Make in India' initiative.
• As of now, 26 technologies have been developed and two systems have been successfully launched under the Polar Satellite Launch Vehicle (PSLV) missions.
• Recently, an additional allocation of ₹500 crores has been sanctioned for TDF focusing on deep-tech advancements.

4. New Startup Policy

• DRDO is set to introduce a policy to streamline engagement with startups to capture innovative ideas for defense applications.

5. Dare to Dream Competitions

• Four "Dare to Dream" competitions have been successfully conducted, fostering an ecosystem for innovation in defense and aerospace.

6. Testing Facilities

• Several world-class R&D testing facilities in DRDO labs are now available for industries, supported by a standard operating procedure.

7. Budget Allocation for Industry Engagement

• For the FY 2022-23, 25% of the defense R&D budget is allocated to industries, startups, and educational institutions.
• Historical budget allocations include:
  • 2022-23: Approved - ₹21,330.20 crore; Actual - ₹20,585.78 crore
  • 2023-24: Approved - ₹23,263.89 crore; Actual - ₹22,927.50 crore
  • 2024-25: Approved - ₹23,855.61 crore; Actual - ₹24,696.94 crore
  • 2025-26: Proposed - ₹26,816.82 crore

8. External Research

• This initiative aims to develop essential knowledge in defense technologies by collaborating with researchers and promoting infrastructure in academic/research institutions.

9. DRDO-Industry-Academic Excellence Centers (DIA-COE)

• A network of 15 DIA-COEs has been established to facilitate collaborative directed research in critical future technologies.

10. Defense Industrial Corridors

• Collaborating with industries in Uttar Pradesh and Tamil Nadu to achieve self-reliance and fulfill ‘Make in India’ goals.

11. Innovation for Defence Excellence (IDEX)

• Launched by PM Modi in April 2018 to encourage innovation in defense, supporting startups/MSMEs with grants and financing for R&D.
• Under the ‘Make’ process defined in DAP-2020, theoretical approvals (AIP) for 70 projects have been granted over the past three years.

This initiative overview highlights significant strides made by the Indian government in bolstering defense manufacturing and technological developments aimed at self-reliance and innovation.