DRDO has signed over 2,000 Transfer of Technology (ToT) agreements with nearly 150 companies, generating an estimated ₹7 lakh crores ($73 billion) in defence production.

This milestone underscores India’s rapid progress in indigenous defence manufacturing and its growing stature as a global exporter.

India’s Defence Research and Development Organisation has steadily expanded its role as the backbone of indigenous defence innovation. By transferring technologies to private industry, DRDO has enabled firms to manufacture advanced systems ranging from missile subsystems and sonar equipment to aerospace components and battlefield electronics.

These collaborations have created a robust ecosystem where industry, academia, and start-ups collectively drive innovation.

The cumulative impact of these ToTs is immense. With over ₹7 lakh crores worth of defence production generated, India has significantly reduced its reliance on imports. This figure also reflects the growing confidence of the armed forces in indigenous systems, as well as the increasing acceptance of Indian defence products in global markets.

Defence exports, which crossed ₹38,424 crore in FY 2025–26, are expected to rise further as production scales up and competitiveness improves.

The government’s decision to scrap the 20% ToT fee earlier this year has accelerated this momentum. By removing financial barriers, industries now have zero-cost access to DRDO’s intellectual property, making it easier for start-ups and established firms alike to integrate cutting-edge technologies.

This reform has been described as a “tax on innovation” being dismantled, ensuring faster adoption of new systems.

DRDO has already transferred more than 2,200 technologies, and its patents have been opened up for free access by Indian industries. Testing facilities remain available on a payment basis, supporting hundreds of firms annually in research and development.

This policy shift has coincided with record defence production figures, which touched ₹1.54 lakh crore in FY 2025–26, with a quarter of the defence R&D budget allocated to industry, academia, and start-ups.

Recent transfers have included critical technologies for the Advanced Medium Combat Aircraft program, such as thermal management systems handed over to Bharat Heavy Electricals Limited.

These systems are vital for next-generation fighters equipped with advanced radars, electronic warfare suites, and stealth materials. Such collaborations highlight how ToTs are not limited to incremental improvements but are shaping India’s future combat platforms.

The evolving nature of warfare has also influenced DRDO’s priorities. Defence Minister Rajnath Singh has repeatedly emphasised the importance of frontier technologies such as directed energy weapons, hypersonics, quantum systems, artificial intelligence, and underwater domain awareness.

Lessons from conflicts like Russia-Ukraine, where drones and sensors transformed battlefields, have reinforced the urgency of staying ahead in technological innovation.

India’s defence industry is now positioned at a critical juncture. With sustained government support, industry participation, and DRDO’s expanding portfolio of ToTs, the country is not only meeting domestic requirements but also carving out a strong presence in international markets.

This trajectory aligns with the vision of Atmanirbhar Bharat, ensuring India’s defence sector remains future-ready in an era of rapid technological change.

Agencies