An ode to start-ups in defence

Source: The post is based on an article “An ode to start-ups in defence – Policy initiatives like Idex have put the defence industry on the path to self-reliance” published in Business Standard on 22^nd June 2023.

Syllabus: GS 3 – Indigenization of Technology, Defence Technology

Relevance: Atmanirbharta in defence

News: The Indian defence industry is growing. India, from being the world’s largest importer of arms and ammunition, is expected to become one of the top five defence exporters before 2030.

What has caused the growth in the Indian defence industry?

PM’s call for atmanirbharta in defence has brought unprecedented change to the sector. It is now recognized that genuine defense preparedness is only achievable through self-reliance.

How did atmanirbharta in defence came up?

The desire to become atmanirbhar is not new. It has been the proclaimed goal of the Ministry of Defence (MoD) for decades.

Several high-level committees were set up over the years. A new Department of Defence Production was instituted in 1962. Private industry was allowed entry in 2001, but imported equipment remained dominant. 

However, between 2018 and 2022, the current government implemented several policy decisions that brought transformation. 

These included the introduction of Innovation for Defence Excellence (iDEX), redefining DefExpo and Aero India as platforms to showcase India’s defense industry capabilities, ease-of-doing business reforms, positive indigenization lists, etc.

The PM’s call for atmanirbharta received support from the armed forces, public sector units (PSUs), and domestic industry. However, the most significant impact was made by the start-ups under iDEX.

How did iDEX helped in transforming the defence sector?

Innovation by the Startups: iDEX helped in the emergence of startups, which developed indigenous technologies and domestic solutions for the defence forces in India.

This allowed India to get the required products at a cheaper rate domestically than those imported.

The solutions developed by the iDEX start-ups were as good or better than those imported. They excelled in emerging technology areas like artificial intelligence, quantum computing, and drones.

For example, QNu Labs developed Quantum Key Distribution over fibre, and achieved distances that were 60 percent higher than the best in class.

Scalability: Scalability was another major benefit of iDEX. Military equipment consists of thousands of sub-systems, which can now be developed simultaneously because of thousands of start-ups responding to these.

Fostering Teamwork: iDEX showcased the power of collaborative teamwork among diverse organizations within the Ministry of Defence.

Representatives from the armed forces, DRDO, PSUs, and the Acquisition Wing worked together, acting as facilitators rather than figuring as bosses.

Other Sectors: iDEX also benefited other sectors in need of an indigenous innovation ecosystem, such as railways and Space.

What can be the way ahead?

The Make in India initiative saw its success in the form of iDEX. However, the true success of iDEX will be realized if it serves as a stepping stone towards a broader vision of “Make in India 2.0”.