DRDO designs; it does not mass-produce. A Licensing Agreement for Transfer of Technology is the formal instrument that moves a completed design out of the laboratory and into a manufacturer - public sector or private - which then builds it at scale. The two agreements signed on 21 August 2026 show both routes being used at once: the decoy goes to a defence PSU, Bharat Dynamics Limited, while the LM2500 gas turbine work goes to a private firm, Vertex Engineering Systems. The LM2500 is a marine gas turbine widely used to propel destroyers, frigates and aircraft carriers, so bringing its fabrication, installation and commissioning into Indian hands reduces dependence on foreign vendors for warship propulsion support.

Underwater countermeasures are among the hardest defence items to buy abroad, because a decoy has to be tuned to the acoustic signature of the specific submarines it protects and no supplier shares that data willingly. Producing the decoy in India is therefore not only an import-substitution saving but a capability that cannot be bought at any price. The LM2500 transfer works on a different weakness: India already operates the turbine on major warships, but has depended on foreign support for fabrication and commissioning, which becomes a readiness problem the moment relations with a supplier sour.