Dr. Shayesta Nishat Ahmed, Research Analyst at the Manohar Parrikar Institute for Defence Studies and Analyses (MP-IDSA), delivered a talk on “Defence R&D Ecosystem in India: A Strategic Overview” at the Monday Morning Meeting held on 21 April 2025. Brig. Jogendra Singh Sial chaired the session. Scholars of the Institute attended the meeting.

Executive Summary

The session explored the evolution and current structure of India’s defence research and development (R&D) ecosystem. Drawing from detailed data and recent initiatives, the speaker assessed the country’s defence innovation landscape, its institutional frameworks, funding mechanisms, and collaboration between DRDO, academia, and industry. The discussion highlighted India’s relatively low R&D spending in comparison to other leading defence economies despite being the fourth-largest global military spender. Emphasis was laid on national programs and policy mechanisms such as the Technology Development Fund, iDEX, ADITI, and the Deep Tech Startup Policy to support innovation among Micro, Small and Medium Enterprises (MSMEs) and startups. Several DRDO-academia collaborative efforts were showcased as examples of the ongoing transformation. The session concluded by identifying key challenges — including low R&D investment, limited private sector maturity, and delays in testing and certification — and recommendations aimed at building a more robust and future-ready innovation ecosystem.

Detailed Report

Brig. Jogendra Singh Sial briefly introducing the topic’s relevance in the current strategic context. He emphasised the importance of innovation and indigenous capabilities in India’s defence preparedness.

Dr. Shayesta Nishat Ahmed began her presentation by mentioning that as per Stockholm International Peace Research Institute (SIPRI) data, India was the fourth-largest global military spender in 2023, with expenditures reaching USD 83.6 billion. However, she pointed out that India continues to rank relatively low in innovation, placing 39th in the Global Innovation Index 2024 published by the World Intellectual Property Organization (WIPO). This dichotomy — between high defence spending and modest innovation standing — formed the entry point for her analysis.

The speaker underscored that defence R&D is not only essential for strategic autonomy but also central to achieving the goals of the Atmanirbhar Bharat initiative. Highlighting the policy shift towards indigenisation, Dr.. Shayesta referred to the growing emphasis on defence exports, diversification of arms imports, and the ambition to “Make in India, Make for the World.” She noted that while these efforts have slightly reduced India’s import dependence, sustained progress requires investment in R&D infrastructure and talent.

Dr.. Shayesta, then presented year-wise allocations for defence R&D in India from 2014–15 to 2025–26, based on data compiled from Ministry of Defence annual reports. She highlighted a steady upward trend, with allocations increasing from ₹13,447 crore in 2014–15 to ₹26,816 crore projected for 2025–26. However, she drew attention to India’s R&D expenditure as a share of GDP — currently at 0.64 percent — which remains significantly below global leaders such as South Korea (4.8 percent), Israel (5.56 percent), the United States (3.5 percent), and China (2.43 percent).

She further analysed India’s defence innovation performance, comparing Indian defence firms with their global counterparts. Indian firms reported lower R&D intensity (1.2 percent vs. 3.4 percent globally), a smaller percentage of Ph.D employees (0.1 percent vs. 0.3 percent), fewer research publications per USD billion revenue (88.5 vs. 37.9), and significantly lower patent output (7.3 patents vs. 240 patents globally).

The presentation then turned to the institutional mechanisms supporting R&D, particularly the role of the Defence Research and Development Organisation (DRDO). Dr. Shayesta elaborated on DRDO’s key initiatives to bridge academia and industry, including the DRDO-FICCI ATAC programme, which promotes commercialisation of DRDO technologies; the Extramural Research Scheme that supports collaborations through research boards like AR&DB, NRB, ARMREB, and LSRB; and the Grant-in-Aid Scheme, which funds scientific talent and research infrastructure in academic institutions. She also mentioned the Contract for Acquisition of Research Services (CARS), which allows DRDO labs to engage academia directly for specific projects.

Highlighting collaborative projects, the speaker presented several recent DRDO-academia partnerships. These included IIT Delhi’s agreements for developing lightweight bullet-resistant jackets, ballistic materials, and extreme weather clothing; IIT Madras’s work on 155mm smart ammunition and FSAPDS; and IIT Kanpur’s development of Kamikaze UAVs and drone incubation programs. Notable quantum technology collaborations were also mentioned, such as the demonstration of a 6-qubit quantum processor by DRDO and TIFR.

The speaker then shifted focus to funding mechanisms designed to boost the participation of startups and MSMEs in defence R&D. The Technology Development Fund (TDF) — with 78 sanctioned projects amounting to ₹333 crore — was highlighted as a flagship initiative. In addition, she discussed platforms like iDEX and ADITI, which provide funding ranging from ₹10 to ₹25 crore per project for deep-tech innovation. The ‘Dare to Dream’ competition and open access to DRDO patents were mentioned as efforts to further democratise the innovation ecosystem.

Dr.. Shayesta also addressed the role of DRDO’s Centres of Excellence, which are now organised under 82 research verticals spanning critical domains such as compound semiconductors, AI, RF technologies, quantum communication, and space systems. Institutions like IIT Bombay, IIT Kanpur, and IIT Hyderabad are among those engaged in these research areas.

Several recent government initiatives were also shared with the scholars. These included DRDO’s allocation of ₹1,200 crores for academic research in 2022–23; the earmarking of 25 percent of the defence R&D budget for the private sector and academia; the Anusandhan National Research Foundation (ANRF) Act 2023; and the National Deep Tech Startup Policy (NDTSP) announced in the February 2025 Budget with an allocation of ₹20,000 crores. The speaker also noted the launch of the National Establishment for Technology Readiness Assessment (NETRA), the National Supercomputing Mission, and the National Quantum Mission as major developments contributing to India’s scientific and technological advancement.

In her concluding remarks, Dr. Shayesta identified key structural and procedural challenges that hinder India’s defence innovation capacity. These included limited R&D investment as a share of GDP, over-reliance on public sector institutions, insufficient academia-industry linkages, lack of streamlined procedures for collaborative funding, and delays in testing and certification. She called for the creation of a National Industrial Strategy Task Force and recommended the establishment of a dedicated Defence R&D Commission to accelerate decision-making and ensure focused execution. She concluded by stating that to meet the long-term goals of Viksit Bharat 2047, India must significantly scale up its R&D investments, encourage private-sector-led innovation, promote blue-sky research, and enable risk-taking in early-stage scientific exploration. She also emphasised the role of universities in leading upstream research, which could then be commercialised by industry.

Brig. Sial in his remarks addressed concerns like implementation challenges, institutional reforms, and opportunities to build a resilient and competitive defence R&D ecosystem.

The session concluded after an insightful exchange of views between scholars during the Q&A session.

The report has been prepared by Ms. Brahmashakti,, Intern, Defence Economics and Industry Centre, MP-IDSA.