SOURCE: AFI
At the inaugural THE WEEK Defence Conclave 2025 held on April 17, 2025, at the Manekshaw Centre in New Delhi, Dr. Samir V. Kamat, Chairman of the Defence Research and Development Organisation (DRDO), underscored the urgent need for India to significantly increase its research and development (R&D) spending to address emerging defense challenges. Speaking during a panel on ‘Future-Proofing India’s Defence,’ Dr. Kamat welcomed Defence Minister Rajnath Singh’s recent announcement to raise R&D allocation to 10% of the defense budget over the next five years but stressed that even this may not suffice to keep pace with global technological advancements.
India currently allocates approximately 5-6% of its ?6.21 lakh crore (around $75 billion) defense budget to R&D, significantly lower than global leaders like the United States (11-14%) and China (estimated 15-20%). Dr. Kamat argued that this gap hinders India’s ability to develop cutting-edge technologies critical for modern warfare, such as hypersonics, quantum computing, and directed energy weapons (DEWs). “We invest only 5% of our defense budget on R&D. This has to increase to 10-15% if we are to achieve our goals,” he said, echoing sentiments shared earlier at the 21st Subroto Mukerjee Seminar in January 2025.
The DRDO chief highlighted recent successes, including the successful test of a 30-kilowatt laser-based DEW in Kurnool, Andhra Pradesh, on April 13, 2025, which positioned India among an elite group—alongside the US, China, and Russia—capable of neutralizing drones and unmanned aerial vehicles (UAVs) mid-air. However, he cautioned that sustaining such advancements requires long-term investment in deep-tech R&D, which often spans 5-6 years and faces funding constraints due to limited risk capital in India.
Dr. Kamat identified a pervasive “fear of failure” within India’s defense R&D ecosystem as a major hurdle, driven by stringent audits and bureaucratic oversight. “This mindset stifles innovation,” he noted, advocating for structural reforms to foster a risk-tolerant environment. To address this, DRDO has adopted a collaborative approach, involving two industry partners from the inception of each R&D project to ensure faster technology transfer and scalability. “We are at a critical juncture. The environment is gradually changing, but we need broader systemic support,” he added.
The DRDO’s Technology Development Fund (TDF), recently enhanced to support projects up to ?50 crore, was cited as a positive step. Initiatives like the Innovations for Defence Excellence (iDEX) and collaborations with startups and academia are also bridging gaps, with over 300 startups now contributing to defense innovation. Yet, Dr. Kamat emphasized that scaling these efforts demands a quantum leap in funding and policy support to match the pace of adversaries like China, which is aggressively advancing in AI, cyber warfare, and unmanned systems.
The push for increased R&D aligns with India’s broader goal of achieving 90% self-reliance in defense production by 2030, as articulated by Dr. Kamat in recent statements. India’s defense exports, which surged to ?23,622 crore ($2.76 billion) in FY 2024-25—a 12.04% growth over the previous year—demonstrate growing global confidence in Indian systems like the BrahMos missile and 155mm artillery shells. However, Dr. Kamat cautioned that true Aatmanirbharta (self-reliance) requires mastering critical technologies domestically, rather than relying on licensed production or imports for high-end platforms like fighter jet engines or advanced sensors.
The DRDO is prioritizing areas like unmanned aerial vehicles (UAVs), hypersonic missiles, and quantum technologies to counter future threats. For instance, India’s recent test of an Active Cooled Scramjet for hypersonic missiles in 2025 placed it in an elite club, but sustaining such programs demands consistent funding. Dr. Kamat also highlighted the need for “sensor” technologies, where Indian startups could play a pivotal role, given their applications in both defense and civilian sectors.
The conclave, themed Force of the Future, emphasized India’s evolving role in a multipolar world facing complex security challenges, from digital warfare to contested maritime domains. Defence Minister Rajnath Singh, in his keynote, noted, “Today, when India speaks, the world listens,” underscoring the country’s growing strategic influence. However, experts at the event, including former Army Chief General Manoj Pande, stressed that transformation in defense preparedness—through increased R&D, indigenous production, and MSME integration—is non-negotiable to maintain this edge.
Globally, nations are ramping up defense R&D to counter emerging threats. China’s advancements in AI-driven warfare and Russia’s hypersonic capabilities highlight the stakes. India, with its unique geopolitical position, must balance neutrality with technological parity, as Dr. Kamat noted: “India is seen as a neutral player, so we can supply to the USA, Russia, and Southeast Asia—but only if we innovate at scale.”
Despite the optimism, challenges loom large. India’s defense R&D budget, at roughly ?30,000-36,000 crore annually, is dwarfed by competitors, limiting the scope for breakthrough projects like the Advanced Medium Combat Aircraft (AMCA), slated for delivery by 2035. The lack of private-sector risk capital and slow technology absorption by public sector undertakings (PSUs) further complicates progress. Dr. Kamat’s call for a 10-15% R&D allocation—potentially ?60,000-90,000 crore annually—faces fiscal constraints, with competing demands for modernization and personnel costs.
Posts on X reflect mixed sentiment, with some praising DRDO’s recent achievements but others criticizing the slow pace of systemic reform. Industry leaders, however, see the revised SOP for export authorizations, announced on April 15, 2025, as a complementary enabler, streamlining permissions for non-lethal items and FOEM repairs, which could boost R&D funding through export revenues.
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