Defence Ministry Unveils Policy Initiatives for MSMEs and Start-ups at VIMARSH

The Defence Ministry unveiled policy initiatives for Micro, Small and Medium Enterprises (MSMEs) and deep-tech start-ups at the DRDO-Industry Synergy Meet VIMARSH 2026 in New Delhi on 15 September 2026. The measures are linked to defence manufacturing, technology transfer, testing access, and industry participation in India’s defence ecosystem.

MSMEs and Start-ups in Defence

MSMEs are enterprises classified under the Micro, Small and Medium Enterprises Development Act, 2006, and they form a major part of India’s industrial base. Deep-tech start-ups work on advanced technologies such as artificial intelligence, robotics, sensors, cyber systems, and advanced materials, which are relevant to defence applications.

The new framework provides direct funding, incubation support, and access to DRDO testing facilities for eligible MSMEs and start-ups. These measures are designed to reduce technical and financial entry barriers in the defence sector.

Technology Transfer and Industrial Access

Nine Licensing Agreements for Transfer of Technology, or LAToTs, were handed over to 13 manufacturing partners for commercial production of advanced defence systems. LAToT is a DRDO mechanism for transferring indigenous technologies to Indian industry for production and deployment.

A standardised and secure framework was also launched for sharing DRDO-developed software source codes with licensee industries. The framework is linked to software-defined defence capabilities and to the management of technology obsolescence in defence systems.

Industry Partnerships and Manufacturing Assessment

Memorandums of Understanding were exchanged with the Society of Indian Defence Manufacturers and Laghu Udyog Bharati to widen industry outreach. SIDM is an industry body associated with the Indian defence manufacturing sector, while Laghu Udyog Bharati represents small-scale industrial interests.

DRDO signed a contract with the Quality Council of India for System for Advance Manufacturing Assessment and Rating version 2.0, known as SAMAR 2.0. The system is used to benchmark the manufacturing maturity of domestic defence enterprises.

Important Facts for Exams

• DRDO stands for Defence Research and Development Organisation, which functions under the Ministry of Defence.
• VIMARSH 2026 was held in New Delhi and carried the theme “Varta se Vikas”.
• Licensing Agreements for Transfer of Technology are used to move DRDO-developed technologies to Indian manufacturers.
• The Quality Council of India is a national body associated with quality standards, accreditation, and assessment systems.

DRDO-Industry Collaboration

DRDO-industry collaboration covers research, design, testing, certification, and manufacturing in the defence value chain. India’s defence industrial policy has focused on indigenous production, private-sector participation, and technology absorption through domestic partnerships.