Govt Drives Defence Tech Innovation with MSMEs, Startups

The government is accelerating India’s transformation into a defence technology hub by actively involving MSMEs, startups, and academia in projects worth Rs 1,264 crore. Minister of State for Defence Sanjay Seth highlighted these initiatives in a Lok Sabha reply, with additional details shared through an official Ministry of Defence (MoD) release.

One of the key programs is the Technology Development Fund (TDF), which has allocated Rs 334 crore to 79 projects aimed at encouraging MSMEs and startups to develop advanced defence technologies. The TDF scheme, aligned with the ‘Aatmanirbhar Bharat’ vision, integrates emerging industries into defence manufacturing, offering grants of up to Rs 50 crore per project. Another significant initiative is the establishment of DRDO Industry Academia Centres of Excellence (DIA-CoEs), where Rs 930 crore has been sanctioned for 264 projects across 15 centers located at premier institutions such as IISc Bangalore and IITs. These centers focus on advanced research in defence and security, equipped with cutting-edge infrastructure to attract top talent.

The Innovations for Defence Excellence (iDEX) framework, introduced to foster innovation in the defence and aerospace sectors, has been scaled up with a budget of Rs 498.8 crore for 2021-26. This program supports MSMEs, startups, and individual innovators in creating breakthrough solutions. Additionally, the annual Dare to Dream Innovation Contest, launched by DRDO in 2019, has awarded Rs 5.43 crore over four editions to recognize and fund innovative ideas in defence and aerospace. Winners are further supported by DRDO to transform their concepts into prototypes under the TDF scheme.

Through these initiatives, the government is not only promoting self-reliance but also fostering collaboration across industries, startups, and academia to position India as a global leader in defence technology innovation.