Centre Approves ₹29,558 Cr to Boost Indigenous Defence Tech
Centre Approves ₹29,558 Crore for Indigenous Defence Technology Development
In a major step towards self-reliance in defence manufacturing, the Indian government has approved defence research and development (R&D) projects worth ₹29,558.66 crore over the past three years. These projects aim to strengthen indigenous defence capabilities by supporting the Defence Research and Development Organisation (DRDO) in developing advanced technologies.
Growing Investment in Indigenous Defence Projects
The commitment reflects a steady increase in both the number and value of projects sanctioned for DRDO. In 2023, the Centre approved 40 R&D projects at a cost of ₹3,842.71 crore. This number surged in 2024 with 43 projects worth ₹22,175.49 crore receiving the green light. So far in 2025, 20 projects totaling ₹3,540.46 crore have been sanctioned.
This rise in funding aligns with India’s strategic goal of reducing dependence on foreign defence equipment and fostering innovation through homegrown solutions.
Kaveri Derivative Engine: A Major Breakthrough
Among the most significant projects is the development of the Kaveri Derivative Engine (KDE), designed to power future unmanned combat aircraft. Two major KDE-related projects have been approved —
- Flightworthy Kaveri Dry Engine Development worth ₹472.42 crore
- Technology Demonstration of Kaveri Derivative Dry Engine worth ₹251.17 crore
These initiatives mark a leap in India’s aero-engine development, an area traditionally reliant on international collaborations.
Stronger Civil-Military Partnerships
To accelerate defence innovation, the government is promoting early involvement of private industry and academia. DRDO’s Development-cum-Production Partners (DcPPs) are being appointed to fast-track the prototyping and production phases. Moreover, Industry-Academia Centres of Excellence (DIA-CoE) are facilitating research collaborations between universities and defence developers.
These partnerships help translate academic knowledge into viable defence technologies, reducing the time from ideation to deployment.
Focus on Certification and Global Collaboration
The Centre for Military Airworthiness and Certification (CEMILAC), in collaboration with the Directorate General of Civil Aviation (DGCA), is formulating common certification standards for dual-use drones. These rules will serve both civil and defence applications, ensuring faster and safer drone deployment across sectors.
Additionally, CEMILAC is engaged in talks with global aviation bodies such as the European Union Aviation Safety Agency (EASA) and aircraft manufacturers like Airbus and Embraer. The aim is to set up local certification mechanisms for indigenous military aircraft, reducing dependence on foreign validations.
DRDO Opens Its Doors to Industry
In a move to make defence innovation more inclusive, DRDO has introduced several industry-friendly policies:
- Zero technology transfer fees and no royalties for firms supplying to the Indian Armed Forces
- Free access to DRDO patents for Indian manufacturers
- Shared access to DRDO testing facilities for private firms
These initiatives are designed to encourage startups and established companies to contribute to India’s defence ecosystem.