By Shubhangi Palve
The Defence Research and Development Organisation (DRDO) continues to push the boundaries of defence technology with cutting-edge projects like Project 76, a collaboration with the Indian Navy to develop next-generation submarines; the Nag MK-II, an advanced anti-tank guided missile system; and a high-speed imaging technique developed with IIT Indore.
These are just a few recent examples of cutting-edge Projects where DRDO continues to push the boundaries of defence technology. DRDO’s reputation speaks for itself, with a mission consistently focused on developing world-class weapon systems and technologies to ensure India’s security and strategic autonomy.
India’s defence sector has witnessed remarkable progress in recent years, with DRDO playing a pivotal role in driving innovation and bolstering exports. Established in 1958, DRDO’s primary mandate has been to achieve self-reliance in critical defence technologies, a mission that has not only strengthened India’s defence preparedness but also positioned the country as a significant player in the global defence export market.
Defence Production and Export
India’s defence production reached a new high in FY 2023-24, with growth amounting to approximately ₹1.27 lakh crore, marking a 16.8% increase over the previous fiscal year. Of this, 79.2% was contributed by Defence Public Sector Undertakings (DPSUs) and other public sector units, while the private sector accounted for 20.8%.
According to the Ministry of Defence, India’s defence exports saw a remarkable 78% increase in the first quarter of 2024-2025 compared to the same period in the previous fiscal year. Exports during April-June surged to ₹6,915 crore, up from ₹3,885 crore in the previous year. DPSUs contributed 60% of these exports, with the private sector contributing the remaining 40%.
India’s once minimal defence exports have now grown to approximately ₹21,083 crores in 2023-2024, a 32.5% increase over the previous fiscal’s ₹15,920 crores. The government had set an ambitious export target of ₹35,000 crores in aerospace and defence goods and services by 2025, as part of a broader plan to achieve a turnover of ₹1.75 lakh crore in defence manufacturing.
India’s defence exports have grown more than 30 times over the past decade, with the country now supplying defence products to over 90 countries. These exports include ammunition, small arms, bulletproof jackets and helmets, electronic items, armoured vehicles, lightweight torpedoes, simulators, drones, and fast-attack vessels.
Surprisingly, the United States has emerged as the largest destination for Indian defence exports. The US accounts for nearly 50% of India’s total defence exports. Other major importers include Myanmar, Israel, and Armenia.
DRDO’s Contribution to Defence Exports
One of DRDO’s most notable contributions to India’s defence exports is the BrahMos supersonic cruise missile. Jointly developed with Russia, the BrahMos missile is one of the fastest cruise missiles globally, with a range of about 290 kilometres. Its versatility, with the capability to be launched from land, sea, and air, has made it a highly sought-after weapon system internationally. In addition to missile systems, DRDO has also contributed to India’s defence exports through radars, electronic warfare systems, unmanned aerial vehicles (UAVs), armoured vehicles, and naval systems.
Innovation and Collaboration
To enhance defence exports, DRDO has adopted a strategy centred on technology transfer and collaboration with India’s private sector. It has successfully transferred technology for various systems to Indian defence manufacturers, allowing for large-scale production aimed at export. Additionally, DRDO has established collaborative agreements with international defence companies to co-develop and co-produce advanced systems. These partnerships have enabled the export of DRDO-developed technologies to countries that favor joint ventures or local production over direct imports.
Budgetary Allocation for Research
The budgetary allocation for DRDO has been increased to ₹23,855 crore for FY 2024-25, up from ₹23,263.89 crore in FY 2023-24. Of this total, a significant portion—₹13,208 crore—has been earmarked for capital expenditure. This increased funding will bolster DRDO’s efforts to develop new technologies, with a special emphasis on fundamental research and collaboration with private industry through Development-cum-Production Partners.
The allocation for the Technology Development Fund (TDF) scheme is set at ₹60 crore. This scheme is specifically designed to support start-ups, micro, small, and medium enterprises (MSMEs), and academic institutions, encouraging young talent interested in innovation and niche technology development in partnership with DRDO. The TDF scheme, a flagship Ministry of Defence (MoD) program, is implemented by DRDO under the “Make in India” initiative. According to MoD, at least 77 projects have been sanctioned under this scheme, with a financial commitment exceeding ₹300 crore, and 27 defence technologies have been successfully developed.
In addition, the government has significantly increased funding for innovation in defence through the iDEX (Innovations for Defence Excellence) program, raising the allocation from ₹115 crores in FY 2023-24 to ₹518 crores in the current fiscal year. This boost will support start-ups, MSMEs, and innovators in developing defence technology solutions, attracting young and creative minds to contribute to the sector.
Impact on India’s Defence Export Growth
DRDO’s contributions have significantly impacted India’s defence export trajectory. Over the past decade, India’s defence exports have seen a substantial increase, largely driven by DRDO-developed systems, as highlighted by the Stockholm International Peace Research Institute (SIPRI). In May 2024, VK Saraswat, a NITI Aayog member and former DRDO chief, noted that India’s defence capabilities have significantly advanced in the last 10 years, with 60% of the country’s arms and ammunition now being indigenously produced.
Strategic Vision
The Standing Committee on Defence (2023) emphasized the importance of research and development in maintaining a robust defence mechanism. With continued support and investment, DRDO is well-positioned to drive further growth in India’s defence export sector, contributing to the nation’s strategic and economic goals.
Despite significant progress, India faces stiff competition in the global arms market from established players. To maintain its growth trajectory, India must continue to innovate, enhance product quality and reliability, and ensure timely delivery.
Shubhangi Palve is an independent journalist specializing in Defence & Aerospace. Until recently, she worked as a Staff Writer at ET Prime. In this capacity, she focused on covering Defence strategies and the Defence Sector from a financial perspective. She offers more than 14 years of extensive experience in the media industry, spanning print, electronic, and online domains.
