Defence Ministry seeks more funds to expand scope of iDEX scheme

Contact Counsellor

CategoryDefence

Last Updated15/10/2024

The Ministry of Defence is seeking to expand the scope of its flagship Innovations for Defence Excellence (iDEX) scheme and has sought additional funds from the Finance Ministry to keep it going.

The Ministry of Defence is seeking additional funds to expand the scope of its Innovations for Defence Excellence (iDEX) scheme, which has been highly successful in promoting startups, MSMEs, and individual innovators in the development of niche defence and aerospace technologies.
The scheme, launched by the Department of Defence Production (DDP), has rapidly exhausted 90% of its allocated budget of ₹498.78 crore for the period 2021-22 to 2025-26, underscoring its fast uptake and success.

The iDEX scheme has achieved significant milestones:
Procurement of 37 products developed under iDEX has been approved, with contracts worth ₹800 crore already signed for 21 products.
26 products have been developed under iDEX, with procurement orders worth over ₹1,000 crore.
Over 300 challenges have been successfully addressed by startups, MSMEs, and innovators under iDEX.

To maintain momentum and support more defence startups and innovators, the Ministry has requested additional funding of ₹497.15 crore from the Finance Ministry. This would bring the total cost of the iDEX scheme to ₹996 crore. The need for additional funds was also recommended by the Revised Cost Committee (RCC) in 2023, and a third-party evaluation of the scheme is underway.

The iDEX scheme has evolved, with the grant assistance for winners increased from ₹1.5 crore to ₹10 crore under iDEX Prime. This expansion was crucial for the development of more advanced and complex defence technologies.
Further, the Ministry launched the Acing Development of Innovative Technologies with iDEX (ADITI) scheme, with a budget of ₹750 crore for the period 2023-24 to 2025-26. Under ADITI, startups can receive up to ₹25 crore for developing critical defence technologies in areas such as artificial intelligence (AI), quantum technology, military communication, and anti-drone systems.

In October 2024, Defence Minister Rajnath Singh launched ADITI 2.0, introducing 19 new challenges focused on critical technologies for the armed forces. Additionally, the 12th edition of the Defence India Start-up Challenge (DISC 12) was launched, offering 41 challenges across key domains such as unmanned aerial vehicles (UAVs), AI, and networking.
With over 9,000 applications received and collaborations with more than 450 startups and MSMEs, iDEX is transforming the Indian defence innovation ecosystem and helping to bridge the gap between the needs of modern armed forces and the capabilities of domestic innovators.