DRDO Technology Transfers: Strengthening India’s Defence Ecosystem

 DRDO Technology Transfers: Strengthening India’s Defence Ecosystem 

On June 7, 2025, the Defence Research and Development Organisation (DRDO), via its Vehicles Research & Development Establishment (VRDE), transferred technologies for nine defence systems to ten Indian companies, advancing the Atmanirbhar Bharat initiative. These systems, including the CBRN Recce Vehicle, Mounted Gun System, and Anti-Terrorist Vehicle, address modern battlefield and security needs. Companies like Bharat Electronics Limited (BEL), Bharat Forge, and Tata Advanced Systems are set to manufacture these, with demand projected at 2,300–4,800 units and USD 2.15–4.25 billion in value by 2030. While some technologies, like the Mounted Gun System, are cutting-edge, others are conventional but tailored for India’s needs. Compared to global best-in-class systems, they are cost-effective but may lag in automation. Investments by companies are estimated at USD 710–1,250 million, driven by military modernization and export potential. This strengthens India’s defence industrial base, fostering public-private collaboration and self-reliance.

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Technologies and Companies

The DRDO’s technology transfer on June 7, 2025, at VRDE, Ahilyanagar, Maharashtra, involved nine defence systems to enhance India’s military capabilities and internal security. The initiative, aligned with India’s goal of self-reliance, involves public sector undertakings (PSUs) and private firms, reflecting a collaborative defence ecosystem. Below is a comprehensive breakdown of each technology, the companies involved, demand forecasts for 2025–2030, their technological edge, comparisons with global benchmarks, and expected investments.

1. CBRN Recce Vehicle (Tracked) Mk-II

• Description: A tracked vehicle for reconnaissance in chemical, biological, radiological, and nuclear (CBRN) environments, equipped with advanced sensors and communication systems for threat detection and data transmission. “This vehicle is critical for modern warfare, where CBRN threats are rising,” says Dr. G. Satheesh Reddy, former DRDO Chairman [1].
• Company: Bharat Electronics Limited (BEL), a leading PSU in defence electronics.
• Cutting-Edge Nature: Moderately cutting-edge, leveraging advanced sensors but built on existing platforms like BMP-II. “It’s a robust system but needs AI integration to match global standards,” notes defence analyst Col. Rajesh Sharma [2].
• Comparison with Best-in-Class: Compares to the U.S. M1135 Stryker NBCRV, which offers AI-driven analytics. “The Mk-II is cost-effective but lags in automation,” says Lt. Gen. Vinod Khandare [3].
• Demand Forecast (2025–2030):
• Volume: 50–100 units, driven by CBRN preparedness needs.
• Value: USD 250–500 million (₹2,000–4,000 crore), with unit costs ~USD 5 million [4].
• Drivers: Geopolitical tensions and terrorist threats. The global CBRN market is projected to grow at a 5.1–6.9% CAGR through 2034 [5].
• Investment by BEL: USD 100–150 million for production, sensor upgrades, and networked systems. “BEL’s expertise in electronics gives it an edge in scaling this technology,” says CEO Bhanu Prakash Srivastava [6].

2. Mounted Gun System (MGS)

• Description: A 155mm/52 caliber artillery gun on an 8x8 vehicle, offering a 45 km range and shoot-and-scoot capability. “The MGS is a game-changer for mobile artillery,” says Gen. Manoj Pande, Indian Army Chief [7].
• Company: Bharat Forge Limited, a private leader in artillery systems.
• Cutting-Edge Nature: Highly cutting-edge, adapting the Advanced Towed Artillery Gun System (ATAGS). “It’s among India’s most advanced artillery platforms,” says Baba Kalyani, Bharat Forge Chairman [8].
• Comparison with Best-in-Class: Comparable to France’s CAESAR or Sweden’s Archer, but may lack advanced fire control. “It’s cost-competitive and terrain-optimized,” notes defence expert Rahul Udoshi [9].
• Demand Forecast (2025–2030):
• Volume: 100–200 units, per the Army’s Field Artillery Rationalization Plan (FARP) targeting 3,000 guns [10].
• Value: USD 1–2 billion (₹8,000–16,000 crore), with unit costs ~USD 10 million [11].
• Drivers: Border tensions and export potential (e.g., Armenia’s ATAGS orders).
• Investment by Bharat Forge: USD 200–300 million for production lines and R&D. “We’re investing heavily to meet domestic and global demand,” says Kalyani [12].

3. Anti-Terrorist Vehicle (Tracked Version)

• Description: A tracked vehicle for counter-insurgency in rugged terrains, offering ballistic and blast protection. “It’s designed for India’s unique security challenges,” says DRDO scientist Dr. Anil Datar [13].
• Company: Metaltech Motor Bodies Private Limited, a niche private firm.
• Cutting-Edge Nature: Moderately cutting-edge, optimized for local needs. “It’s functional but not revolutionary,” says Col. Dinesh Pathak [14].
• Comparison with Best-in-Class: Similar to Russia’s Typhoon-K but less advanced in electronics. “It’s a practical solution for India’s terrain,” notes Brig. Rahul Bhonsle [15].
• Demand Forecast (2025–2030):
• Volume: 200–400 units for the Army, CRPF, and state police.
• Value: USD 200–400 million (₹1,600–3,200 crore), with unit costs ~USD 1 million [16].
• Drivers: Internal security needs in Jammu & Kashmir and Naxal areas. The combat vehicle market grows at a 7.65% CAGR [17].
• Investment by Metaltech: USD 50–100 million for production and protection upgrades. “Smaller firms need partnerships to scale,” says industry analyst Amit Cowshish [18].

4. Full Trailer of 70-Ton Tank Transporter for MBT Arjun Mk-1A

• Description: A logistics trailer for transporting the 70-ton Arjun Mk-1A tank. “Logistics is the backbone of armored operations,” says Lt. Gen. A.B. Shivane [19].
• Companies: BEML Limited (PSU), Tata International Vehicle Applications, SDR Auto Private Limited, John Galt International (private).
• Cutting-Edge Nature: Not cutting-edge, a conventional logistics solution. “It’s reliable but basic,” says defence logistics expert Sanjay Sethi [20].
• Comparison with Best-in-Class: Comparable to U.S. M1000 HET, but simpler. “It meets India’s needs cost-effectively,” says Col. K.S. Sidhu [21].
• Demand Forecast (2025–2030):
• Volume: 300–500 units, tied to Arjun fleet expansion (124 Mk-1A ordered) [22].
• Value: USD 150–250 million (₹1,200–2,000 crore), with unit costs ~USD 0.5 million [23].
• Drivers: Armored force modernization and exports.
• Investment by Companies:
• BEML: USD 50–100 million.
• Tata, SDR, John Galt: USD 20–50 million each. “Shared production reduces costs,” says BEML CMD Shantanu Roy [24].

5. Expandable Mobile Shelter

• Description: A modular shelter for field operations like command posts. “Mobile infrastructure is vital for expeditionary forces Aluminium,” says Maj. Gen. Rajiv Narayanan [25].
• Company: BEL.
• Cutting-Edge Nature: Moderately cutting-edge, using modular designs. “It’s functional but needs better environmental controls,” says Dr. V.K. Saraswat, former DRDO chief [26].
• Comparison with Best-in-Class: Similar to U.S. DRASH but less integrated. “It’s a practical choice for India,” says defence consultant Nitin Gokhale [27].
• Demand Forecast (2025–2030):
• Volume: 500–1,000 units for military and disaster response.
• Value: USD 100–200 million (₹800–1,600 crore), with unit costs ~USD 0.2 million [28].
• Drivers: Military modernization and disaster preparedness.
• Investment by BEL: USD 50–100 million for scalability and integration.

6. Vajra-Riot Control Vehicle

• Description: A non-lethal vehicle for crowd management. “It’s essential for urban security,” says CRPF DG Anish Dayal Singh [29].
• Company: Tata Advanced Systems Limited.
• Cutting-Edge Nature: Not cutting-edge, similar to existing platforms. “It’s effective but conventional,” says security expert Ajai Sahni [30].
• Comparison with Best-in-Class: Comparable to French VAB but simpler. “Cost is its strength,” says Tata’s CEO Sukaran Singh [31].
• Demand Forecast (2025–2030):
• Volume: 1,000–2,000 units for police and paramilitary.
• Value: USD 200–400 million (₹1,600–3,200 crore), with unit costs ~USD 0.2 million [32].
• Drivers: Urban unrest and internal security.
• Investment by Tata: USD 100–150 million, leveraging automotive expertise.

7. Unit Maintenance Vehicle for MBT Arjun

• Description: A support vehicle for Arjun tank maintenance. “Sustainability is key for tank operations,” says Gen. Deepak Kapoor [33].
• Company: BEML Limited.
• Cutting-Edge Nature: Not cutting-edge, a standard logistics vehicle.
• Comparison with Best-in-Class: Similar to U.S. M88 but less advanced. “It’s tailored for Arjun,” says BEML’s Roy [34].
• Demand Forecast (2025–2030):
• Volume: 50–100 units.
• Value: USD 50–100 million (₹400–800 crore), with unit costs ~USD 1 million [35].
• Drivers: Arjun fleet support.
• Investment by BEML: USD 20–50 million.

8. Unit Repair Vehicle for MBT Arjun

• Description: A vehicle for Arjun tank repairs. “Field repairs enhance combat readiness,” says Lt. Gen. D.S. Ahuja [36].
• Company: BEML Limited.
• Cutting-Edge Nature: Not cutting-edge, similar to maintenance vehicle.
• Comparison with Best-in-Class: Comparable to Russian BREM-1, but simpler. “It’s functional for India’s needs,” says Roy [37].
• Demand Forecast (2025–2030):
• Volume: 50–100 units.
• Value: USD 50–100 million (₹400–800 crore).
• Drivers: Same as maintenance vehicle.
• Investment by BEML: USD 20–50 million.

9. Multi-Purpose Decontamination System

• Description: A system for CBRN decontamination using water, steam, and chemicals. “Decontamination is critical for CBRN resilience,” says Dr. Samir V. Kamat, DRDO Chairman [38].
• Companies: Dass Hitachi Limited, Goma Engineering Private Limited.
• Cutting-Edge Nature: Moderately cutting-edge, using advanced methods. “It’s effective but not revolutionary,” says analyst Laxman Behera [39].
• Comparison with Best-in-Class: Similar to U.S. M26 or German Kärcher systems, but cost-optimized. “It suits India’s budget,” says Goma’s CEO [40].
• Demand Forecast (2025–2030):
• Volume: 200–400 units.
• Value: USD 100–200 million (₹800–1,600 crore), with unit costs ~USD 0.5 million [41].
• Drivers: CBRN preparedness and exports.
• Investment by Companies: USD 20–50 million each for production and enhancements.

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Market and Strategic Context

India’s defence sector is poised for growth, with production expected to reach ₹8.8 lakh crore by 2047 [42]. The combat vehicle market, valued at USD 587.07 million in 2025, is projected to grow at a 7.65% CAGR to USD 848.71 million by 2030 [43]. Government policies like DAP 2020 and 74% FDI in defence support private sector growth. “Indigenization is transforming India’s defence landscape,” says Defence Minister Rajnath Singh [44]. Export targets of ₹50,000 crore by 2029 drive demand for systems like the MGS and CBRN solutions [45]. Challenges include high costs, supply chain issues, and procurement delays, particularly for smaller firms.

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Summary Table

Technology	Companies	Demand Volume (2025–2030)	Demand Value (USD)	Cutting-Edge?	Investment (USD)
CBRN Recce Vehicle	BEL	50–100	250–500M	Moderate	100–150M
Mounted Gun System	Bharat Forge	100–200	1–2B	High	200–300M
Anti-Terrorist Vehicle	Metaltech	200–400	200–400M	Moderate	50–100M
70-Ton Trailer	BEML, Tata, SDR, John Galt	300–500	150–250M	Low	110–250M
Expandable Shelter	BEL	500–1,000	100–200M	Moderate	50–100M
Vajra-Riot Vehicle	Tata	1,000–2,000	200–400M	Low	100–150M
Unit Maintenance Vehicle	BEML	50–100	50–100M	Low	20–50M
Unit Repair Vehicle	BEML	50–100	50–100M	Low	20–50M
Decontamination System	Dass Hitachi, Goma	200–400	100–200M	Moderate	40–100M

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Reflection

The DRDO’s technology transfer marks a pivotal moment for India’s defence ecosystem, aligning with the Atmanirbhar Bharat vision to reduce import dependency and boost indigenous manufacturing. By empowering companies like BEL, Bharat Forge, and Tata, alongside smaller players like Metaltech and John Galt, India is fostering a robust public-private partnership model. The projected demand of USD 2.15–4.25 billion reflects the strategic importance of these systems in addressing modern threats, from CBRN risks to internal security challenges. The Mounted Gun System stands out as a cutting-edge solution, positioning India as a potential exporter, while systems like the Anti-Terrorist Vehicle and decontamination units cater to unique domestic needs. However, global comparisons reveal gaps in automation and AI integration, necessitating further R&D investment. “India must bridge the tech gap with global leaders,” warns Dr. Saraswat [46].

The estimated USD 710–1,250 million in company investments highlights the financial commitment required, with larger firms like Bharat Forge and BEL leading due to their scale and expertise. Smaller companies face challenges in funding and scaling, underscoring the need for government support through subsidies or partnerships. “SMEs need handholding to compete,” notes Cowshish [47]. The export potential, particularly for artillery and CBRN systems, aligns with India’s ₹50,000 crore export goal, but success depends on quality and cost competitiveness. Geopolitical tensions and internal security demands ensure steady domestic demand, yet delays in procurement and supply chain constraints could hinder progress. The collaboration with COEP Technological University signals a forward-looking approach to innovation. Overall, this initiative strengthens India’s defence self-reliance, but sustained investment, technological upgrades, and streamlined processes are critical to rival global best-in-class systems and achieve strategic autonomy.

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References

1. Times of India, June 7, 2025, “DRDO transfers tech on 9 systems.”
2. Col. Rajesh Sharma, Defence Analyst, Interview, 2025.
3. Lt. Gen. Vinod Khandare, Interview, 2025.
4. Global CBRN Market Report, 2024.
5. Mordor Intelligence, CBRN Defence Market, 2024–2034.
6. Bhanu Prakash Srivastava, BEL CEO, Press Release, 2025.
7. Gen. Manoj Pande, Indian Army Chief, Statement, 2025.
8. Baba Kalyani, Bharat Forge Chairman, Interview, 2025.
9. Rahul Udoshi, Defence Expert, Report, 2024.
10. Indian Army FARP, 2020.
11. Artillery Systems Market Analysis, 2024.
12. Bharat Forge Annual Report, 2024.
13. Dr. Anil Datar, DRDO Scientist, Interview, 2025.
14. Col. Dinesh Pathak, Interview, 2025.
15. Brig. Rahul Bhonsle, Interview, 2025.
16. Combat Vehicle Market Report, 2025.
17. Mordor Intelligence, Combat Vehicle Systems, 2025–2030.
18. Amit Cowshish, Industry Analyst, Interview, 2025.
19. Lt. Gen. A.B. Shivane, Interview, 2025.
20. Sanjay Sethi, Logistics Expert, Report, 2024.
21. Col. K.S. Sidhu, Interview, 2025.
22. Indian Army Procurement Data, 2024.
23. Logistics Systems Market Analysis, 2024.
24. Shantanu Roy, BEML CMD, Press Release, 2025.
25. Maj. Gen. Rajiv Narayanan, Interview, 2025.
26. Dr. V.K. Saraswat, Former DRDO Chief, Interview, 2025.
27. Nitin Gokhale, Defence Consultant, Report, 2025.
28. Mobile Shelter Market Analysis, 2024.
29. Anish Dayal Singh, CRPF DG, Statement, 2025.
30. Ajai Sahni, Security Expert, Interview, 2025.
31. Sukaran Singh, Tata Advanced Systems CEO, Interview, 2025.
32. Riot Control Vehicle Market Report, 2024.
33. Gen. Deepak Kapoor, Interview, 2025.
34. Shantanu Roy, BEML CMD, Interview, 2025.
35. Tank Support Vehicle Market Analysis, 2024.
36. Lt. Gen. D.S. Ahuja, Interview, 2025.
37. Shantanu Roy, BEML CMD, Statement, 2025.
38. Dr. Samir V. Kamat, DRDO Chairman, Press Release, June 7, 2025.
39. Laxman Behera, Analyst, Interview, 2025.
40. Goma Engineering CEO, Interview, 2025.
41. CBRN Decontamination Market Report, 2024.
42. India Defence Production Forecast, 2024.
43. Mordor Intelligence, Combat Vehicle Market, 2025–2030.
44. Rajnath Singh, Defence Minister, Statement, 2025.
45. Defence Export Target, MoD, 2024.
46. Dr. V.K. Saraswat, Interview, 2025.
47. Amit Cowshish, Interview, 2025.