The need is increasingly felt of involving the private sector and other agencies , i.e.; academic institutions like universities, IITs, Indian Institute of Science etc for a complete revamping and reorientation of Defence Research Development Organisation . These recommendations having come from the Parliamentary Standing Committee on Defence with an aim to reduce dependence on foreign vendors need thorough exercise and planning. These objectives, though not possible to be achieved in the short run, however, can progressively pave way for defence related requirements being met indigenously.

Private and Public sectors needed to work together as less dependence on foreign sellers meant massive research and investments in the country. Dependence on foreign sellers has often proved full of hassles and delays and not enough procurement from our own sources has added to the problems. It shall definitely prove economically and militarily favourable if procurement were made from indigenous available sources besides the same giving a chance to home sector to develop and expand. Collaboration with foreign manufacturers by the Indian private firms would provide a level playing field in manufacturing and providing items required for our defence needs.

A Committee headed by Dr. P. Rama Rao was constituted by the Government for reviewing the functioning of Defence Research and Development Organisation (DRDO).

The Organisation has implemented the following recommendations of the Committee within its powers:

• Nomination of Nodal Officers for structured interaction between DRDO and Services
• Introduction of Integrated Financial Advice (IFA) Scheme for financial decentralisation
• Appointment of a dedicated Chief Controller for Human Resources (HR)
• Creation of Seven Technology Domain based Clusters headed by Director’s General, Restructuring of DRDO HQrs, Creation of Directorate of Systems Analysis and Modelling (SAM) and Directorate of Quality, Reliability and Safety (QR&S)
• Efforts have also been made to increase budget for Extramural Research as recommended by the Committee
Note has been initiated by DRDO for approval of the Cabinet for:
• Creation of empowered Defence Technology Commission (DTC)
• Creation of a Commercial Arm of DRDO
• Renaming of Director General, DRDO as Chairman, DRDO
• Creation of 5 Senior Administrative Grade (SAG) posts along with 162 other posts for full scale implementation of IFA Scheme

At present, there is no proposal to revamp the Defence Public Sector Undertakings (DPSUs) to make them capable for developing advance weapons systems. The DPSUs have a strategy for strengthening their capabilities for producing and supplying various Weapon Systems and Platforms required by Defence Forces within the agreed timeframe. Some of the DPSUs have also collaborated with DRDO and other R&D institutions in this regard. With the objective of achieving self-reliance in defence production, the Ordnance Factories and DPSUs have been continuously modernising and upgrading their capabilities and widening their product range.

Adequate resources have been made available by the government to DRDO for carrying out research and development works. Government continuously monitors the capacity utilisation of DPSUs and emphasis is given for augmentation and modernisation of their capacities to meet the growing demand of the Armed Forces.