India has taken major steps to advance its defense self-reliance strategy, unveiling a next-generation precision-guided missile, signing a $240 million contract for indigenous air defense radars, and boosting research and development (R&D) spending to record levels.

The developments underline the government’s “Aatmanirbhar Bharat” (self-reliant India) initiative as it seeks to reduce dependency on imports and strengthen domestic defense manufacturing.

DRDO Tests Next-Generation ULPGM-V3 Missile

India’s Defen[s]e Research and Development Organi[z]ation (DRDO) announced successful flight trials of the Unmanned Aerial Vehicle Launched Precision Guided Missile (ULPGM)-V3 at the National Open Area Range in Kurnool. The missile, a significant upgrade of the ULPGM-V2, is designed to enhance India’s precision strike capabilities.

The ULPGM-V3 features a high-definition dual-channel seeker for pinpoint targeting, a two-way data link enabling post-launch target updates, and a modular warhead system with anti-armor, penetration-cum-blast, and pre-fragmentation configurations.

“The missile successfully demonstrated its anti-armor capability against fortified targets,” DRDO said in a statement.

The missile was launched from an indigenous unmanned aerial vehicle developed by Bengaluru-based start-up Newspace Research Technologies. DRDO is working on integrating the weapon with long-range drones built by other Indian companies, a move expected to strengthen the country’s drone warfare capabilities.

The program involves a consortium of DRDO labs and industry partners including Adani Defense, Bharat Dynamics Ltd, and over 30 micro, small and medium enterprises (MSMEs).

Defen[s]e Minister Rajnath Singh hailed the test as proof that “Indian industry is ready to absorb and produce critical defense technologies.”

$240 Million Radar Deal with BEL

The Ministry of Defen[s]e (MoD) signed a Rs 2,000 crore ($240 million) contract with Bharat Electronics Limited (BEL) for the supply of advanced air defense fire control radars to the Indian Army.

The radars, developed under the “Buy Indian – Indigenously Designed, Developed and Manufactured” category, will feature at least 70 per cent indigenous content. They are designed to detect and track a range of airborne threats, including fighter aircraft, helicopters and drones.

“The procurement will enhance the operational readiness of the Army’s air defense regiments while supporting local industry and creating opportunities for MSMEs,” the MoD said.

R&D Spending Surges

India is also ramping up investments in defense R&D, with the DRDO receiving project sanctions worth $3.55 billion (Rs 29,559 crore) over the past three years, according to junior defense minister Sanjay Seth.

The biggest increase came in 2024, when 43 projects worth $2.66 billion were approved, compared with $461 million in 2023. So far this year, 20 projects totaling $425 million have been cleared.

A significant focus of the spending is the Kaveri Derivative Engine (KDE), intended for unmanned combat aerial vehicles (UCAVs). Two projects – the “Flightworthy Kaveri Dry Engine” and “Technology Demonstration of Kaveri Derivative Dry Engine” – have received funding of over $86 million combined.

Reforms to Build Indigenous Ecosystem

The government is pursuing reforms to encourage collaboration between the armed forces, academia and private industry. Key initiatives include:

• Development-cum-Production Partners (DcPPs): Accelerating the transition from prototypes to production.
• DRDO Industry-Academia Centres of Excellence (DIA-CoEs): Fifteen centers are promoting research in defense and security.
• UAV Certification: The Centre for Military Airworthiness and Certification (CEMILAC) is working with India’s aviation regulator DGCA on common drone certification standards.
• Global Certification Links: Engagement with European and Brazilian certification bodies to streamline approval for civil-military aircraft derivatives.
• Technology Transfer (ToT): New policies offer zero ToT fees and zero royalties for domestic supplies to the armed forces.
• DRDO Facilities and Patents: Industries now have free access to DRDO’s test facilities and patents.
• Technology Development Fund (TDF): Financial backing for local firms developing new defense products.
• Dare to Dream Contest: Encouraging start-ups and innovators to propose cutting-edge defense technologies.

Strategic Outlook

India has long relied on imports for critical defense platforms, but the current push aims to build a domestic industrial base capable of producing advanced systems – from precision missiles to radar and jet engines.

Analysts say these efforts could make India a global player in defense manufacturing while reducing strategic vulnerabilities. “The progress in missile technology and indigenous radar production shows that India is moving beyond assembly to creating complex systems at home,” said a senior defense expert.

With rising geopolitical tensions and a focus on securing its borders, India’s defense modernization – underpinned by R&D investments and private sector involvement – is likely to accelerate further in the coming years.

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