In a significant address to the burgeoning defence startup community, Defence Secretary Aramane Giridhar delivered a powerful message: what these innovative enterprises need most are not government venture capital funds, but firm production orders to ensure their survival and growth. This statement, made during an event in New Delhi, underscores a strategic shift in how the government views its role in nurturing the defence manufacturing sector.
The Core Challenge: From Prototype to Production
The Defence Secretary pinpointed the most critical hurdle facing defence startups today. He stated that while initial funding is available through various government channels, the real test begins when a startup has a successful prototype. The absence of substantial production orders at this stage is the single biggest point of failure for many promising companies. He elaborated that startups require a steady stream of orders to achieve financial stability, invest in scaling their operations, and refine their manufacturing processes. Without this market validation, even the most technologically advanced ventures can falter.
Giridhar highlighted the government's flagship initiative, the Innovations for Defence Excellence (iDEX), as a prime example of creating a pipeline for innovation. The iDEX framework and the associated Defence India Startup Challenge are designed to connect the armed forces with startups and MSMEs to solve specific problem statements. However, he stressed that the ultimate success of this model depends on converting these solutions into contracted procurement.
Government's Evolving Role as a Catalyst
The Defence Secretary outlined the multi-pronged approach the government is taking to de-risk the journey for defence startups. He mentioned that the government provides various forms of support, including grants, to help startups navigate the initial, high-risk phases of research and development. The goal is to bring their ideas to a stage where they are ready for practical application and testing by the armed forces.
He also touched upon the broader positive changes in the Indian defence industry. The country's defence production has crossed the milestone of one lakh crore rupees, a testament to the growing capabilities of the domestic sector. A key driver of this growth has been the government's positive indigenisation lists, which explicitly ban the import of certain defence items, thereby creating a guaranteed market for Indian manufacturers. This policy, combined with a focus on exporting military hardware, provides a larger canvas for startups to operate on.
A Collaborative Future for Defence Indigenisation
Giridhar called for a more integrated and collaborative ecosystem. He urged startups to work closely not only with the armed forces but also with the Defence Research and Development Organisation (DRDO) and established private defence companies. This synergy can help bridge gaps in technology and manufacturing expertise. He positioned startups as agile partners who can complement the work of larger organisations, bringing fresh perspectives and disruptive technologies to the table.
The Defence Secretary's message is clear: the Indian government is committed to being a partner in innovation, but the ecosystem must mature to a point where startups are sustained by market forces. The focus is moving from creating startups to creating a sustainable defence industrial base where private players, both big and small, can thrive on the strength of their products and the orders they secure. This vision is central to India's ambition of achieving 'Atmanirbharta' or self-reliance in defence.
