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DRDO Restructuring Begins – India’s Defence R&D Gets Fundamental Overhaul

 


India is witnessing a historic moment in its defence research when the Defence Research & Development Organisation (DRDO) begins a sweeping institutional reform. Backed by the Prime Minister’s Office (PMO) and steered through the Ministry of Defence (MoD), the restructuring aims to break old silos, build new capabilities and align India’s defence-tech architecture with 21st-century demands.  

 

A Legacy in Transition

Since its establishment in 1958, DRDO has been central to India’s goal of technological self-reliance in defence—developing landmark systems such as missile programmes, radar and electronic warfare systems. However, over time the organisation expanded into over 40 laboratories with overlapping mandates, leading to slower innovation cycles and delays in moving technologies from lab to production. The reform blueprint recognises that while expertise exists, agility, speed, and cross-domain collaboration must improve.  

 

Why Reform is Necessary

The nature of warfare and technology has shifted rapidly—autonomy, AI, quantum, directed-energy, unmanned systems and network-centric operations are now game-changers. The existing DRDO structure, built for a different era, must evolve to keep pace. According to a committee report led by K. Vijay Raghavan, nearly 60 % of DRDO project delays came from internal issues and another ~18 % from shifting military requirements.   The reforms aim to make DRDO leaner, more focused, and better integrated with industry, academia and startups.

 

Key Structural Changes

The reform blueprint outlines several major structural changes:

Laboratory Consolidation
The plan recommends converting DRDO’s 41 or more labs into about 10 “national laboratories,” each organised around critical domains such as propulsion, AI & autonomy, quantum & cyber, and advanced materials. This consolidation is meant to reduce duplication, encourage interdisciplinary work and optimise resources.  

Creation of the Department of Defence Science, Technology & Innovation (DDSTI)
A proposed new institution, the DDSTI will act as the interface between DRDO, academia and industry. It will oversee start-up, university research, technology transfer and coordinate with industry initiatives. Meanwhile, DRDO would focus on core research and technology incubation rather than full system production.  

Role Clarification: Core vs Applied Research
Under the new model, DRDO is encouraged to refocus on high-risk, long-term research (frontier science: quantum, directed energy, autonomy) and allow industry / DPSUs to handle applied engineering, production and systems integration. This shift acknowledges that large scale production and commercialisation are better handled by industry.  

 

Human Capital, Accountability & Innovation Culture

Reforming structure is one thing; reforming culture and incentives is another. The plan emphasises:

Performance-linked metrics and accountability frameworks in place of purely procedural compliance.

Lateral recruitment of scientists, flexible career tracks, and more autonomy for lab directors aiming to attract global-standard talent in high-tech fields.

Start-up and industry integration: DRDO will increasingly engage with MSMEs, academic institutions and private firms to benefit from agile innovation. Defence Minister Rajnath Singh has urged DRDO to target 100 projects a year with start-ups.  

These measures are vital because India’s ambition is not just to develop labs, but to create an ecosystem where researchers, entrepreneurs and industry flourish together.

 

Industry & Startup Integration: The Innovation Multiplier

One of the most promising aspects of the reforms is the emphasis on open innovation and industry-ecosystem participation. DRDO aims to become the technical nucleus, providing test-beds, infrastructure and validation for start-ups and private firms, while production and commercialisation flow through industry channels. This mirrors successful models abroad such as Defense Advanced Research Projects Agency (DARPA) in the US.  

By bringing in private innovators, MSMEs and academia, India hopes to turn defence technology opportunities into the next generation of unicorns. It also means a shift from a state-centric R&D model to a networked innovation ecosystem   one where collaboration, speed and disruption matter as much as size and scale.

 

Challenges: Reform Beyond Structure

While the roadmap is ambitious, success will depend on execution and mindset shifts. Some of the key challenges include:

Institutional inertia and procedural culture: DRDO has long operated under compliance-driven norms; shifting to a culture that encourages risk-taking, experimentation, and accepts failure will take time.

Industry readiness: Private sector and DPSUs must evolve from production houses to innovation-driven partners. Policy changes can only go so far; operational capabilities matter.

Global collaboration and talent: Attracting and retaining top-tier tech talent (in robotics, quantum, AI) is difficult given global competition. Also, defence innovation increasingly involves international partners and networks   India must align.

Timelines and governance: The government has set deadlines such as a target to complete major restructuring by January 1, 2026. Meeting these will require sustained effort and clear governance.

 

Why This Matters for India

For India, the stakes are high. A modernised DRDO and a vibrant defence-tech ecosystem mean:

Greater self-reliance in critical technologies rather than dependence on imports.

Faster transition from research to production, giving the military cutting-edge capabilities.

A stronger link between defence innovation and broader economic growth   startups, manufacturing, exports.

Global competitiveness: As peer nations restructure, India’s defence tech industry must keep pace or risk ageing systems and capability gaps.

 

Conclusion
The reform of DRDO is not just another institutional shuffle it’s a strategic inflection point for India's defence research and innovation ecosystem. By breaking old silos, building new collaborative frameworks, embracing industry and start-ups, and focusing on frontier technologies, India aims to reshape how it develops defence capabilities. The journey will be complex, with many structural and cultural hurdles, but the opportunity is historic. The time for incrementalism is over; India needs bold leaps in its defence-tech future

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