MoD Sanctioned 29558 Crore For DRDO's R&D projects in Last 3 years

Ministry of Defence (MoD) has significantly ramped up its investment in indigenous defence research and development (R&D), with over ₹29,558 crore worth of projects sanctioned for DRDO (Defence Research and Development Organisation) in the last three years alone.

Between 2023 and mid-2025, DRDO was handed 103 projects, showcasing the government’s growing trust in homegrown innovation. The biggest jump came in 2024, when 43 projects worth a massive ₹22,175.49 crore were cleared. In comparison, ₹3,842.71 crore was sanctioned for 40 projects in 2023, while ₹3,540.46 crore has been committed for 20 projects so far in 2025.

Among the key developments is the Kaveri Derivative Engine (KDE) — a crucial powerplant for the upcoming remotely piloted strike aircraft, also referred to as the IUCAV. Two significant projects tied to this include the Flightworthy Kaveri Dry Engine Development (₹472.42 crore) and a technology demonstration project (₹251.17 crore). Together, they represent a renewed focus on developing indigenous jet engine technology — a long-sought capability in India's aerospace journey.

But it's not just about funding. The MoD is also reshaping the defence R&D ecosystem with deep structural reforms that aim to bridge civil and military sectors. One major move is the designation of Development-cum-Production Partners (DcPPs) to speed up prototyping and move technology faster from labs to battlefield use. These industry partners now benefit from a zero royalty policy when supplying DRDO-developed technologies to the Indian Armed Forces, and no transfer-of-technology (ToT) fees either.

To make sure new innovations don’t stay stuck in academia, the DRDO is also bringing industries closer to research institutions through 15 Centres of Excellence (DIA-CoEs) set up at premier institutions like IISc Bengaluru and several IITs. These hubs are driving forward targeted research in critical defence technologies.

Certification, which has long been a bottleneck in defence manufacturing, is also being streamlined. The Centre for Military Airworthiness and Certification (CEMILAC), DRDO’s certifying body, is now working hand-in-hand with the DGCA (civil aviation regulator) to align standards for Unmanned Aerial Vehicles (UAVs). Lower-weight UAVs will now undergo common certification procedures for both military and civilian use — a move that could greatly simplify processes for drone makers.

CEMILAC has also initiated dialogues with European (EASA) and Brazilian (ANAC) aviation authorities, as well as companies like Airbus and Embraer, to create a clear path for civil-military aircraft certification inside India — another step towards boosting local aircraft production.

On the grassroots level, the Technology Development Fund (TDF) continues to provide financial backing to Indian industries, especially MSMEs and startups, for developing defence products. Meanwhile, the popular Dare to Dream 4.0 challenge, launched during DefExpo, aims to tap into the scientific genius of individuals and start-ups with problem statements straight from the Indian defence sector.

And to ensure no innovation goes to waste, DRDO has opened up its patents for free use by Indian industries. It has also made several of its world-class testing facilities available for private sector use — a rare move that shows the government’s intent to treat industry not as a vendor, but as a partner.

All these updates were shared by Raksha Rajya Mantri Shri Sanjay Seth in a written reply to MP Tejasvi Surya in the Lok Sabha, highlighting the government’s renewed determination to make India a global defence powerhouse — not just a buyer, but a builder.

The road to Aatmanirbhar Bharat in Defence is being paved not just with money, but with trust, collaboration, and bold reforms.