India’s defence innovation surges with $344M in iDEX contracts

India’s Ministry of Defence (MoD) has reached a transformative milestone under its flagship Innovations for Defence Excellence (iDEX) initiative
October 23, 2025 | 22:12

With the award of 650 innovation and development contracts—collectively valued at approximately $344 million (₹3,000 crore)—the ministry has reaffirmed its commitment to nurturing homegrown capabilities, empowering start-ups, MSMEs, and innovators to redefine the contours of India’s defence ecosystem.

The iDEX platform, launched in 2018, has become a cornerstone of the Aatmanirbhar Bharat vision—channelling the spirit of self-reliance into actionable projects that combine technology, entrepreneurship, and national security imperatives.

Expanding the defence innovation ecosystem

Over the past six years, iDEX has evolved from a bold policy experiment into a dynamic platform connecting innovators directly with the Indian Armed Forces and research agencies.

The 650 awarded contracts span over 50 cutting-edge technology categories—ranging from unmanned aerial and ground systems, AI-enabled surveillance, and encryption-based communication networks to advanced propulsion and miniaturised guidance systems.

This expansion has created an unprecedented ecosystem of innovation where start-ups and small enterprises are no longer peripheral players but key contributors to India’s defence preparedness.

By actively encouraging youth-led innovation and industry participation, the MoD has turned iDEX into an innovation highway—bridging the gap between concept and combat-readiness.

These projects are not limited to blue-sky research. They embody tangible advances in battlefield technologies—secure tactical communication, drone swarm architecture, counter-UAV systems, and next-generation ISR payloads—many of which are now entering advanced integration and validation trials with tri-service platforms.

The Indian Army, Navy, and Air Force are all witnessing firsthand how indigenous solutions can be rapidly matured into deployable technologies that enhance operational agility.

Accelerating rapid prototyping and technology transition

A distinctive strength of the iDEXframework lies in its focus on rapid prototyping and transition from idea to implementation. The initiative provides early-stage funding and mentorship to innovators while facilitating access to user agencies like the DRDO, Service Headquarters, and Defence Public Sector Undertakings (DPSUs).

The $344 million investment acts not only as a developmental catalyst but also as a powerful market-access enabler—helping start-ups move from design concepts to production-ready systems. This funding mechanism ensures that India’s most promising innovations are not confined to laboratories but translated into hardware that strengthens the nation’s strategic autonomy.

Under the Make-II and iDEX Prime categories, several projects have already crossed the prototype validation phase and are progressing toward limited series production.

For instance, indigenous secure radios, AI-driven battlefield analytics tools, and maritime domain awareness systems developed under iDEX are being evaluated for frontline induction.

Building a resilient defence industrial base

The iDEX initiative has become a vital pillar of India’s defence industrial base, serving as both an incubator and accelerator for new-age technologies. Its integration with the Make in India framework ensures that innovation is not isolated but aligned with long-term production and supply chain goals.

With over 350 start-ups and 100 MSMEs actively engaged, iDEX has succeeded in creating a distributed innovation network that supports modular subsystem development, component-level advancements, and import substitution.

The involvement of established defence manufacturing entities—such as HAL, BEL, and BDL—through co-development and mentoring partnerships ensures that the innovations emerging from iDEX find a ready path to scale-up and commercialisation.

This ecosystemic approach has strengthened India’s position as a credible producer of advanced defence technologies.

It has also enhanced the agility of the national supply chain, enabling faster adoption of indigenous components across avionics, sensors, electronic warfare systems, and secure communication modules.

Policy synergy and forward momentum

The recent milestone perfectly aligns with the Ministry of Defence’s broader policy roadmap.

The Defence Acquisition Procedure (DAP) 2020 emphasises industry-led innovation and mandates that at least 25% of the MoD’s R&D budget be allocated to private sector and start-up-driven projects.

This policy push ensures that India’s innovation momentum is sustained not by isolated initiatives but through institutional commitment.

The Defence India Start-up Challenge (DISC) and iDEX Prime verticals continue to identify critical technology gaps and offer targeted funding for mission-ready solutions.

Simultaneously, the integration of iDEXwith the Technology Development Fund (TDF) and the Defence Industrial Corridors in Tamil Nadu and Uttar Pradesh ensures that ideas born in start-up labs can seamlessly transition into large-scale manufacturing.

By merging fiscal support with infrastructure development, the MoD is effectively creating a full-spectrum innovation pipeline—from ideation to deployment—anchored firmly within India’s borders.

Empowering Aatmanirbhar Bharat in defence

The success of iDEX is emblematic of India’s journey toward a self-reliant defence ecosystem. It has transformed the country’s innovation landscape by giving start-ups and MSMEs not just visibility but credibility.

These 650 contracts are more than mere numbers; they are symbols of a maturing industrial base capable of designing, developing, and delivering solutions that meet the most demanding operational requirements.

The convergence of defence innovation with digital technologies like AI, quantum computing, and cyber resilience has placed India at the forefront of next-generation defence R&D globally.

Towards a future-ready defence ecosystem

As India aspires to emerge as a global hub for defence innovation and manufacturing, the iDEX journey stands as a blueprint for future growth.

The ongoing projects under the initiative are not only enhancing the capabilities of the Indian Armed Forces but also creating spin-off benefits in civilian technology sectors—ranging from disaster management and space applications to cyber and energy domains.

The achievement of 650 innovation contracts worth $344 million marks a defining moment in India’s pursuit of technological self-reliance.

Through iDEX, the Ministry of Defence has built a platform that is transforming the very DNA of India’s defence innovation ecosystem. It has given innovators the tools, funding, and partnerships to turn visionary ideas into operational assets.

Tarah Nguyen
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