The Indian government has taken significant steps to encourage the defence sector’s major players to support start-ups. Defence Secretary Giridhar Aramane highlighted the need for reducing the cost of capital for start-ups and ensuring they receive necessary funding at the lowest possible cost. This initiative is part of the defence sector reforms which focus on procurement, quality, and the development of an innovative ecosystem.

The government expects defence public sector units (PSUs) to extend support to start-ups by providing interest-free loans, especially if the start-ups develop parts, subsystems, or components for platforms manufactured by the defence PSUs. Additionally, private sector giants in the defence industry are urged to handhold start-ups and help them overcome funding challenges.

This move is aligned with the broader vision of fostering innovation within the national defence and security sectors, as seen with initiatives like the Defence India Start-Up Challenges (DISC) and the Innovations for Defence Excellence (iDEX) program. These programs aim to support start-ups and MSMEs in creating prototypes and commercializing products/solutions that are relevant to India’s defence and security.

The government’s commitment to this cause is further demonstrated by setting aside significant funds to nurture technology development under the iDEX initiative, with the goal of achieving tangible innovations and increasing local work in the defence sector

(Agencies)