The Technology Development Fund (TDF) scheme, initiated by the Ministry of Defence under the Make in India program, has approved 70 projects, amounting to Rs 291.25 crore, to support MSMEs and startups in designing and developing indigenous defence technologies. Managed by the Defence Research and Development Organisation (DRDO), the scheme aims to enhance private sector engagement, especially with MSMEs and startups, fostering a culture of military technology design and development. Launched in 2016, it provides grant-in-aid to industries and institutions for the development of defence and dual-use technologies not currently available in the Indian defence sector. By August 2023, Rs 260 crore had been allocated under the scheme, with Rs 64.35 crore disbursed as a grant-in-aid. The government's emphasis on local purchases, with 75% of the defence capital acquisition budget reserved for local companies, is expected to strengthen MSMEs in the sector through various funding mechanisms.