The Indian government has approved projects worth Rs 29,558.66 crore for the Defence Research and Development Organisation over the past three years to boost indigenous defence technology. The funding is focused on strengthening research and development in various critical areas.
In 2023, 40 defence projects were cleared with a total cost of Rs 3,842.71 crore. The number of projects increased in 2024, with 43 new ones approved at Rs 22,175.49 crore. So far in 2025, 20 projects have been sanctioned with a total value of Rs 3,540.46 crore.
One of the key highlights is the development of the Kaveri Derivative Engine, which will be used to power unmanned combat aircraft. Two projects related to this engine have been approved. The Flightworthy Kaveri Dry Engine Development has received funding of Rs 472.42 crore, while the Technology Demonstration of the Kaveri Derivative Dry Engine has been cleared with Rs 251.17 crore.
To speed up innovation and development, the government is working to strengthen collaboration between the civil and military sectors. Development cum Production Partners are being selected early to accelerate the creation of prototypes and their production. Industries are also being involved from the beginning through DRDO’s Industry Academia Centres of Excellence, where academic research is turned into usable defence technology
The Centre for Military Airworthiness and Certification is partnering with the Directorate General of Civil Aviation to create joint certification rules for drones used in both military and civilian roles. Talks are also ongoing with global organisations like EASA and aircraft manufacturers such as Airbus and Embraer to create a local certification system for military aircraft.
To further encourage innovation, DRDO has signed agreements with defence industrial corridors, opened its test facilities to private firms, and made its patents freely available to Indian companies. A new policy has also been launched where companies supplying to the Indian Armed Forces will not have to pay any transfer of technology fees or royalties.
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