DRDO Unveils New Technology Transfer Policy, Paving the Way for ₹1.1 Lakh Crore in Defense Production Projects.

The Defence Research and Development Organisation (DRDO) has unveiled a new Transfer of Technology (ToT) policy aimed at increasing private sector involvement in defense manufacturing. This policy marks a significant shift from the DRDO's traditional focus on public sector undertakings by offering special provisions to support Micro, Small, and Medium Enterprises (MSMEs) and startups.

According to sources, the new initiative is part of the Modi government's broader strategy to enhance domestic manufacturing capabilities. The DRDO has already issued over 2,100 Licensing Agreements for ToT, with 256 of those granted in 2024 alone.

The push for private-sector participation comes as the Defence Acquisition Council (DAC) has given its initial approval (Acceptance of Necessity) for tri-service proposals worth ₹1.1 lakh crore in 2024. In total, proposals amounting to more than ₹5.75 lakh crore have been approved to transform DRDO-developed technologies into equipment for the Army, Navy, and Air Force.