Date: 2026-03-19Category: Press ReleaseState: Union GovernmentCountry: India
India must become global hub of drone manufacturing in next few years amid current geopolitical instability: Raksha Mantri at National Defence Industries Conclave 2026
**Executive Summary**
The National Defence Industries Conclave, held on March 19, 2026, aimed to position India as a global hub for indigenous drone manufacturing to ensure strategic autonomy and self-reliance. Raksha Mantri Rajnath Singh launched several initiatives, including DISC-14 and ADITI 4.0, featuring over 200 problem statements to drive innovation. The event emphasized the integration of MSMEs and start-ups into the defense ecosystem through advanced technologies and government policy support.
**Key Points / Main Content**
**Strategic Objectives and Drone Manufacturing**
* India aims to become a global drone manufacturing hub within a few years to enhance defense preparedness.
* Self-reliance must extend to the component level, including engines, batteries, software, and molds, to reduce dependency on imports.
* The government is providing a clear policy push to meet specific domestic defense requirements and achieve "Aatmanirbhar Bharat."
**Innovation and Startup Initiatives**
* **DISC-14 & ADITI 4.0:** Launched with 107 problem statements (82 under DISC-14 and 25 under ADITI 4.0) from the Defence Forces, Coast Guard, and Defence Space Agency.
* **DPSU Challenges:** 101 new innovation challenges funded by DPSUs were introduced to encourage design-led innovation, offering mentorship and supply chain integration.
* **iDEX Progress:** As of February 2026, 676 start-ups and MSMEs have joined the ecosystem; 58 prototypes have received procurement clearance (valued at Rs 3,853 crore).
**Technological Integration and Industry 4.0**
* MSMEs are urged to adopt "Industry 4.0" technologies, including Artificial Intelligence, Robotics, Additive Manufacturing, and "Digital Twins."
* Integration is encouraged through two methods: Horizontal (collaboration across diverse sectors) and Vertical (partnering with large-scale industries).
* Advanced simulation tools and virtual models are highlighted as essential for informed decision-making in complex systems.
**Government Reforms and Support**
* **Budgetary Support:** A three-pronged approach (Equity, Liquidity, and Professional support) has been introduced to help MSMEs become "Champion MSMEs."
* **Registration Simplification:** The Udyam Portal and Udyam Assist Portal have been launched to formalize small industries; MSME numbers have grown from 4.67 crore in 2012-13 to nearly 8 crore.
* **Institutional Reforms:** 2025 was designated the "Year of Reforms," focusing on simplifying approvals, strengthening quality processes, and creating the "Srijan Deep" database of over 40,000 industries.
**New Publications and Guidance**
* Five documents were released to assist stakeholders: *SAMARTHYA 2026* (Self-reliance roadmap), *Indian Defence Industry – Going Global* (Export report), *SANKLAN* (MSME guide), *Enabling Provisions* (DPSU integration booklet), and the *AI Maturity Assessment Model*.
**Impact Analysis**
**MSMEs and Start-ups**
**Impact**
They are positioned as primary drivers of economic growth and innovation, gaining access to significant procurement contracts (Rs 2,326 crore to date) and specialized funding.
**Action Required**
Must participate in DISC-14 and ADITI challenges, embrace advanced manufacturing technologies, and utilize digital portals for formal identification.
**Defence Public Sector Undertakings (DPSUs)**
**Impact**
DPSUs are now central to the innovation ecosystem, acting as funders, mentors, and facilitators for smaller innovators.
**Action Required**
Fund and manage the 101 new innovation challenges and provide testing facilities and supply chain opportunities to winning start-ups.
**Private Defence Companies and Large Industries**
**Impact**
These entities are encouraged to co-opt MSMEs as partners and suppliers to build a robust domestic value chain.
**Action Required**
Engage with the "Srijan Deep" database for R&D resources and adopt the AI Maturity Assessment Model to improve technological integration.
**Defence Forces (Army, Navy, Coast Guard, DSA)**
**Impact**
They benefit from a wider range of indigenous technological solutions tailored to specific operational requirements.
**Action Required**
Continue identifying and articulating "problem statements" to guide the research and development efforts of the domestic industry.
Key Entities Referenced
Innovations for Defence Excellence (iDEX): The primary framework launched in 2018 to foster innovation and technology development in the defence and aerospace sectors by engaging start-ups, MSMEs, and individual innovators.
ADITI (Acing Development of Innovative Technologies with iDEX): A strategic initiative under the iDEX framework focused on developing novel solutions and breakthrough innovations to meet the specific requirements of the Defence Forces.
Department of Defence Production (DDP): The department within the Ministry of Defence responsible for organizing the National Defence Industries Conclave and implementing reforms to strengthen the domestic defence industry.
Defence India Start-up Challenge (DISC-14): The 14th edition of a challenge program launched to promote innovations by addressing specific problem statements from the Defence Forces, Indian Coast Guard, and Defence Space Agency.
Srijan Deep: A digital database of over 40,000 industries working in the defence sector, created to facilitate resource identification and research and development.
Ministry of Defence
India must become global hub of drone
manufacturing in next few years amid current
geopolitical instability: Raksha Mantri at National
Defence Industries Conclave 2026
“Indigenous drone production ecosystem must for strategic
autonomy, defence preparedness & self-reliance”
Over 200 problem statements of Defence Forces, ICG, DSA
and DPSUs unveiled as part of DISC 14 & ADITI Challenges
4.0
“676 start-ups/MSMEs/Innovators join defence innovation
ecosystem through iDEX; 58 prototypes worth Rs 3,853 crore
receive procurement clearance; 45 procurement contracts
signed valued at Rs 2,326 crore”
“MSMEs are playing significant role in driving economic
growth; need to embrace new tech to achieve Viksit Bharat
goal”
Posted On: 19 MAR 2026 2:04PM by PIB Delhi
“India must work in a mission mode to emerge as a global hub of indigenous drone manufacturing in the
next few years,” said Raksha Mantri Shri Rajnath Singh as he stressed on the urgent need to build a drone
production ecosystem to ensure strategic autonomy, enhance defence preparedness and make the country
Aatmanirbhar in view of the present geopolitical uncertainties. He was addressing MSMEs, start-ups,
winners of Innovations for Defence Excellence (iDEX), Defence Public Sector Undertakings (DPSUs),
private defence companies, innovators, policymakers, and academia during the inaugural session of the
two-day National Defence Industries Conclave, organised by the Department of Defence Production on
the theme ‘Advanced Manufacturing Technologies’ at Manekshaw Centre, New Delhi on March 19, 2026.Raksha Mantri asserted that the ongoing conflicts, ranging from the Russia-Ukraine war to the tensions
between Iran & Israel, are proof that drones and counter-drone technologies are destined to play a pivotal
role in future warfare, and self-reliance in drone manufacturing is essential not merely at the product level,
but at the component level as well. “From the drone’s molds to its software, engines, and batteries,
everything must be manufactured in India. This is no easy task. In most countries where drones are
manufactured, a significant number of critical components are currently imported from China,” he said.
Shri Rajnath Singh added that while the creation of any nation’s defence industrial ecosystem relies on the
contributions of large industries, MSMEs, start-ups, and innovators, it is equally driven by a clear policy
push from the government, tailored to meet the country’s specific defence requirements. While he called
for active contribution of the private sector, he extended Prime Minister Shri Narendra Modi-led
Government’s full support to transform India into a global hub for indigenous drone manufacturing.
As part of the inaugural session, Raksha Mantri launched the 14th edition of Defence India Start-up
Challenge (DISC-14) and the 4th edition of ADITI challenges under the iDEX framework. A total of 107
problem statements, including 82 under DISC-14 & 25 under ADITI Challenges 4.0, from the Defence
Forces, Indian Coast Guard and Defence Space Agency were launched to promote breakthrough
innovations in various domains.A new initiative featuring 101 innovation challenges from DPSUs was also launched by Raksha Mantri to
encourage design-led innovation by MSMEs and start-ups. These challenges are funded by DPSUs, which
will also provide mentorship, testing facilities and opportunities for potential integration into their supply
chains to the winning start-ups.
Shri Rajnath Singh described iDEX and ADITI (Acing Development of Innovative Technologies with
iDEX as game-changer initiatives, through which start-ups, innovators, and MSMEs are provided with the
opportunity to develop novel solutions to meet the specific requirements of the Defence Forces. “As of
February 2026, approximately 676 start-ups, MSMEs, and individual innovators have joined the defence
innovation ecosystem since the inception of iDEX in 2018. 548 contracts have been signed; and 566
challenges launched. Of these, 58 prototypes have received clearance for procurement, valued at around
Rs 3,853 crore. Furthermore, 45 procurement contracts have already been signed, worth nearly Rs 2,326
crore. These figures demonstrate that innovation is gradually materialising into tangible products &
technologies, and the role played by our start-ups & MSMEs in this transformation is steadily gaining
strength,” he said.
Raksha Mantri emphasised that MSMEs are today actively engaged in fields such as Artificial
Intelligence, Robotics, Automation, and Advanced Manufacturing, representing a monumental and
positive transformation. He termed it as imperative for the MSMEs and start-ups to embrace and integrate
these technologies to ensure the optimal utilisation of their resources and capabilities. “In the
contemporary landscape, innovations such as Automation, Artificial Intelligence, Robotics, and Additive
Manufacturing are reshaping the global manufacturing sector. Furthermore, technologies like ‘Digital
Twins’ and advanced simulation tools are unlocking a host of new possibilities. A ‘Digital Twin’
essentially involves creating a virtual model of a real-world system. Such technologies empower us to
better comprehend complex systems and facilitate more informed decision-making,” he said.
Shri Rajnath Singh added that ‘integration’ is another crucial concept for the enhancement of MSME
capabilities. “This integration can be achieved in two distinct ways: Horizontally and Vertically.
Horizontal integration implies that MSMEs from diverse sectors connect with one another, learn from
each other's experiences, and collaborate. Vertical integration signifies that MSMEs partner with large-
scale industries, engage with emerging technological domains, and cultivate expertise in fields such as
Artificial Intelligence, Automation, Robotics, and Additive Manufacturing. Our MSMEs must advance
towards the adoption of Industry 4.0. It is when both horizontal and vertical integration occur
simultaneously that a robust innovation ecosystem is established,” he said.Highlighting the numerous initiatives undertaken by the Government to strengthen the MSMEs, Raksha
Mantri stated that a three-pronged approach has been introduced in this year’s Union Budget to provide
MSMEs with Equity, Liquidity, and Professional support, thereby enabling them to emerge as ‘Champion
MSMEs’. The objective is to accelerate the growth of MSMEs, and enhance their competitiveness in both
domestic and international markets, he said.
Shri Rajnath Singh pointed out that since 2014, the Government has consistently prioritised and focused
on the expansion of this “vital” sector. To simplify the registration and identification of MSMEs, digital
platforms such as the Udyam Portal and the Udyam Assist Portal have been launched. The objective is to
integrate small industries into the formal economy, thereby ensuring that they receive the benefits of
government schemes.” he said. He added that the number of MSMEs in the country stood at
approximately 4.67 crore in 2012-13, and the figure has reached nearly 08 crore, according to recent data.
This growth, he said, demonstrates the continuous rise in the spirit of entrepreneurship within the country,
and small industries are now playing a significant role in driving economic growth.
“We see start-ups serving as catalysts for social change through their truly unique ideas, while others
attain the coveted status of a ‘Unicorn’ within an incredibly short span of time. In the near future, many
more will emerge as the next generation of ‘Unicorns’. All that is required is consistent effort,
perseverance, and unwavering dedication,” said Raksha Mantri, urging the MSMEs and start-ups to march
forward with zeal & enthusiasm to innovate, embrace new technologies, and realise the vision of
Aatmanirbhar Bharat and Viksit Bharat.
Speaking on the occasion, Secretary (Defence Production) Shri Sanjeev Kumar highlighted that the
conclave aims to promote advanced manufacturing technologies, and integration of MSMEs in the
production ecosystem and entire value chain starting from design, development and manufacturing. He
added that the 200 Problem Statements will give an opportunity to MSMEs, industries, start-ups, young
innovators in designing state-of-the-art products and enhance their skills.
The Secretary (DP) enumerated the series of steps taken by the Ministry to promote and strengthen the
domestic defence industry during 2025 - Year of Reforms. “DDP implemented significant reforms
including rationalisation and simplification of various approvals and permissions; strengthening of quality
process and bringing testing laboratories belonging to DPSUs and DRDO. A digital database of industries
working in the defence sector, named Srijan Deep, has also been created, wherein over 40,000 industries
have been listed to increase the resource for R&D,” he said.
During the event, Raksha Mantri also released 05 publications of Department of Defence Production,
which aim to strengthen awareness of policy initiatives, promote defence exports and facilitate ease of
doing business for industry stakeholders. These are:
SAMARTHYA 2026 – A Journey Towards Self-Reliance in Defence Production: A document
outlining the roadmap and key initiatives to strengthen self-reliance in defence manufacturing.
Indian Defence Industry – Going Global: A report highlighting India’s growing defence exports
and opportunities for Indian companies in the global market.
SANKLAN: A handy guide providing answers to common queries of defence companies and
MSMEs.
Enabling Provisions to integrate MSMEs in Defence PSU ecosystem: A booklet outlining new
measures to integrate MSMEs into the DPSU ecosystem.
AI Maturity Assessment Model: A framework to help defence organisations assess and improve
their adoption of Artificial Intelligence technologies.Shri Rajnath Singh also inaugurated an exhibition, wherein 20 large defence companies have set up their
stalls to showcase their initiatives and programmes for co-opting MSMEs as partners, suppliers and
innovators. In addition, 24 Indian and foreign companies are participating in the exhibition to display
advanced manufacturing technologies such as automation, artificial intelligence, robotics, additive
manufacturing and smart materials.Chief of Defence Staff General Anil Chauhan, Chief of the Naval Staff Admiral Dinesh K Tripathi, Chief
of the Army Staff General Upendra Dwivedi, Defence Secretary Shri Rajesh Kumar Singh, Secretary,
Department of Defence R&D and Chairman, DRDO Dr Samir V Kamat and other senior officials were
present on the occasion.
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