The Technology Development Fund was established to promote the self – reliance of India. It is a part of Make in India initiative. (And not a part of Atma Nirbhar Bharat Abhiyan though the fund focuses on self reliance).
About Technology fund Scheme
- It aims to promote self – reliance in defence technology.
- The programme was launched by Ministry of Defence and is implemented by DRDO.
- It was launched to boost the MSMEs and startups to participate in the creating an ecosystem that enhances cutting edge technology capabilities of defence applications.
Focus areas
- Improvement and Development in existing products
- Development of futuristic technologies
- Import substitution of components (whose technology does not exist in India)
- The scheme is limited to development of technologies for national defence
- It aims to increase the calibre of defence applications by increasing research and development in defence sector.
Benefits
- The fund provides a major boost to the defence manufacturing technology. It encourages the industry to innovate on defence technologies.
- It provides grants in aid for the development of indigenous technologies.
- It also provides other benefits such as licensing of product, joint ownership of Intellectual Property rights along with DRDO, licensing the product, technology for commercial gains.
Funding Support
- The funding is provided through provision of grants to the industry
- The funds are linked to mutually agreed milestones
- The fund provides up to ten thousand crores of rupees
- It allows industries to work in collaboration with research institutes and academia.
Why was the scheme launched?
To increase the participation of public and private industries, especially the MSMEs in defence applications. It also aimed to increase self – reliance of India. And to reduce the defence imports of the country.
Shortage of fund
In December 2021, the defence minister replied in Rajya Sabha that the armed forces are facing a shortage of 1.13 lakh soldiers and 9,362 officers. Currently, 53,569 officers and 11,35,799 soldiers are serving in the Indian Army.