Technology Development Fund Scheme

The Technology Development Fund (TDF) scheme is an initiative promoting self-reliance in defence technology. Facilitated by the Defence Research and Development Organisation (DRDO), it aims to enhance defence manufacturing and innovation within the country. As reported by the Ministry of Defence, the defence budget of India crossed ₹6.81 Lakh Crore in 2025–26, with growing focus on promoting self-reliance in defence technologies. The TDF scheme supports this mission by funding industry-driven technological solutions developed by startups, MSMEs, and academia.

The main goal of the TDF scheme is to boost domestic defence technology and reduce reliance on foreign technology and services. Some of the core objectives of the TDF scheme are as follows:

• Encourage the development of cutting-edge defence technologies in India.
  

• Reduce dependence on imported defence systems.
  

• Support MSMEs, startups, and academia in solving technology challenges identified by DRDO.
  

• Promote innovation and faster product development cycles.
  

• Build long-term national capability in high-technology defence areas.

Here are some of the  key benefits and features of the TDF scheme:

• Funding of up to 90% of the total project cost.
  

• Funding of up to ₹50 crore for each approved project in the industry.
  

• Funding for prototype development, testing, and trials.
  

• Support for both direct defence technologies and dual-use technologies.
  

• Special focus on startups and MSMEs to promote industry-wide participation.
  

• Strong collaboration between DRDO labs and industry partners.

The eligibility criteria  to apply for the Technology Development Fund is as follows:

• The applicant must be an Indian company, startup, MSME, or academic institution.
  

• In case of a company, it must have majority Indian ownership (at least 51%).
  

• The applying entity must be a public limited company, a private limited company, a partnership firm, a limited liability partnership, a one-person company, or a sole proprietorship registered as per applicable Indian laws.
  

• Recognition from the Department for Promotion of Industry and Internal Trade (DPIIT) as per Government of India (GOI) guidelines is required for startups.
  

• Only entities with strong R&D capability or potential are considered.
  

• The entity must meet DRDO’s technical and financial evaluation parameters.
  

Startups incorporated within 3 years prior to submitting the application will fall under the nascent startup category. It needs to be incubated in a government-backed incubator. It should have no prior grants or grant-in-aid from government programmes for similar technology. Moreover, a Resident Indian citizen must own and control a minimum stake of 51% in the startup.

Follow these steps to complete your TDF application:

1. Visit the official TDF Portal: Go to the DRDO official website section for TDF: https://tdf.drdo.gov.in/

2. Register on the TDF portal: Create an account and complete the applicant profile with business and contact details. If you already have an account, simply login with your credentials.

3. Prepare the proposal: Draft a detailed techno-economic proposal highlighting the technology solution, R&D methodology, development plan and costs, testing and validation strategy.

4. Upload documents: Submit all required business, technical, and compliance documents.

5. Submit the application online: Once submitted, DRDO evaluates the proposal in multiple stages.

6. Await approval and signing of agreement: Approved proposals lead to a funding agreement followed by project initiation.

The Technology Development Fund scheme encourages and empowers Indian innovators to strengthen the country’s defence ecosystem through research, prototyping, and advanced technology development. The TDF scheme offers a strong platform to turn breakthrough ideas into national assets for established companies, startups, and academic institutions all the same. For growing businesses seeking flexible financial support beyond government schemes, financial marketplaces like Bajaj Markets also offer convenient business loan options.