As India accelerates its support for defence startups through initiatives like Innovation for Defence Excellence (iDEX) and the Technology Development Fund (TDF), as well as simplified ‘Make’ guidelines, the recent announcement by Finance Minister Nirmala Sitharaman regarding a new scheme to strengthen deep-tech technologies for defence marks a significant milestone.
The incorporation of start-up-friendly measures in 2023–24 demonstrated a keen understanding of the challenges faced by these entities, emphasizing the government’s dedication to providing them with the necessary tools for resilience and success. A notable highlight was the provision of contingency measures designed to assist startups in recuperating from losses, thereby alleviating financial burdens and enabling a more robust focus on their core strengths. More such provisions are required in the upcoming budget as well.
These efforts signal a commitment to increasing funding for research and development (R&D) in the upcoming budget. The reservation of 25 percent of defence R&D funds for private sector engagement has been a crucial step, enabling startups to participate in both small and large-scale projects, Captain Nikunj Parashar, Co-Founder & CEO of Sagar Defence Engineering Pvt Ltd., tells FinancialExpress.com.
According to Parashar, this allocation not only invigorates the innovation landscape but also allows startups to contribute significantly to national defence capabilities.
“We anticipate the government to facilitate stronger collaboration between industry partners and the government. By establishing clear guidelines and incentives for joint projects, we look forward to the budget fostering a thriving ecosystem where new ideas and technologies can rapidly transition from concept to deployment,” he states.
In his view this collaborative approach is critical in enhancing India’s current defence capabilities, and “we hope the budget reflects an understanding of the importance of engaging diverse stakeholders in this mission.”
The upcoming budget is expected to foster an ecosystem where new ideas and technologies can swiftly transition from concept to deployment, enhancing India’s defence capabilities. Engaging diverse stakeholders in this mission is vital, and we hope the budget reflects this understanding.