What exactly did he say that is wrong? How will reform of DRDO lead to more import?
All the arguments that he made are correct. DRDO needs to adapt to the changing times. There should be serious accountability for significant delays and incompetence. Today, DRDO does not need to handle every product development, as the industry is mature enough to only require guidance (Except strategic stuff). The services have also reformed considerably; the Army Design Bureau is a perfect example.
DRDO cannot be the entity to judge, act as the jury, block procurement, and undertake a project. This represents a serious misalignment of incentives. Currently, no one faces consequences when they fail to deliver a product on time. There should be an external authority that gathers input from all stakeholders, which is precisely what the proposed committee aims to do.
Why exactly is the meaning of "Autonomy" in the context of DRDO?. This organization relies on the cooperation of various stakeholders and does not use the products it develops. The performance of the equipment they produce directly impacts the end users. Any flaw in the LCA or ALH could result in the loss of many lives. When you promise to deliver a MiG-21 replacement and delay it by a decade, pilots get killed as a consequence. No consequence and full autonomy do not go hand in hand.
In the case of ISRO, they establish the requirements, conduct research and development, and carry out product development. They primarily serve as their own customer. The failure of Chandrayaan doesn't matter at the end of the day because it's a science experiment. Our deterrence does not depend on it. The story is similar for Department of Atomic Energy (DAE), they can afford to be "autonomous" because for the most part they are their own customer.
The introduction of theaterization is a significant transformation implemented in services, while corporatization was mandated for OFB. Any organization funded by taxpayers must undergo reforms periodically to enhance efficiency and effectiveness.