Agamya Goyal
Policy Update
Background
Launched on 4 March 2024 during DefConnect 2024, the ADITI Scheme (“Acing Development of Innovative Technologies with iDEX”) is part of the Innovations for Defence Excellence (iDEX) framework under India’s Department of Defence Production. With a total corpus of ₹750 crore for FY 2023–24 to 2025–26, ADITI aims to foster 30 deep-tech, critical and strategic technologies spanning AI, quantum, cyber‑tech, satellite communication, semiconductors, autonomous weapons, and underwater surveillance.
This initiative addresses critical capability gaps in modern defence, enable startup‑led innovation, and promote India’s goals of Atmanirbhar Bharat and defence self‑reliance. Grants of up to ₹25 crore per project are available to selected startups and MSMEs.
Functioning
ADITI operates as a sub-scheme within the iDEX ecosystem (2018‑onward), managed by the Defence Innovation Organisation (DIO). Innovations are solicited through Defence India Start‑up Challenges (DISC) and ADITI Challenge Statements:
- ADITI 1.0 (March 2024): 17 problem statements issued across Army, Navy, IAF, and Defence Space Agency.
- ADITI 2.0 (Oct 2024 at DefConnect 4.0): 19 new challenges in AI, quantum, anti‑drone systems, military communication, adaptive camouflage.
Applicants propose solutions; successful proposals receive grants (up to ₹25 crore). Projects proceed via milestone-based funding. Selected innovations are fast-tracked into procurement pipelines under DAP‑2020 Make II/III categories.
While the iDEX Prime category provides up to ₹10 crore, ADITI expands this to ₹25 crore, aligning with needs of high‑risk deep‑tech ventures.
Performance (2022–25)
Engagement & Funding
- As of February 2025, iDEX has issued 549 problem statements, engaged 619 startups/MSMEs, and awarded 430 contracts.
- The iDEX outlay for FY 2025‑26 is ₹449.62 crore, covering ADITI and complementary programmes.
Procurement & Outcomes
- 26 products developed under iDEX received procurement orders totalling over ₹1,000 crore, with Acceptance of Necessity (AoN) or RFPs worth ₹2,380 crore issued for 37 products.
- The Armed Forces have procured 43 items from iDEX innovators worth ₹2,400+ crore by early 2025.
National Landscape
This performance contributes to India signing 193 defence contracts worth ₹2,09,050 crore in 2024–25, of which ₹1,68,922 crore were awarded to domestic industry marking a clear shift toward indigenous manufacturing.
Impact
1. Boost to Deep-Tech Defence Innovations
- Startups have begun developing cutting-edge tech like quantum navigation systems, AI-powered sensors, and autonomous vehicles.
- For Example: QuBeats, a quantum tech startup, got ₹25 crore under ADITI to build a GPS-free navigation system for the Navy,crucial during war when GPS signals may be blocked.
2. Rapid Growth of the Defence Startup Ecosystem
- iDEX (including ADITI) has now received 9,000+ applications from Indian innovators.
- Over 600 startups/MSMEs are actively developing defence technologies.
- In 2018, very few startups worked with defence; now, it’s a full-blown ecosystem.
3. Supporting Atmanirbharta & Industrial Expansion
- ADITI supports big national missions like:
- SRIJAN portal (indigenisation of defence items),
- Defence Industrial Corridors in UP & Tamil Nadu,
- Positive Indigenisation Lists (items banned for import).
- Goal: Reach ₹3 lakh crore in defence production and ₹50,000 crore in defence exports by 2029.
- ADITI helps Indian firms compete with global defence giants.
4. Faster Innovation to Deployment
- Traditional DRDO projects can take 5–7 years to deploy.
- Under iDEX/ADITI, startups can deliver usable products in 2–3 years.
- As a result, 26+ products from iDEX have been bought by the armed forces,worth over ₹1,000 crore!
5. Increased Investor Confidence
- Deep-tech success stories (like QuBeats) are attracting venture capital into defence R&D.
- Investors are more confident that Indian defence startups can scale and deliver.
- Defence is no longer a slow, PSU-only space,it’s seen as an exciting, fast-moving sector.
6. Collaboration Across Sectors
- ADITI brings together:
- Armed Forces (who post tech challenges),
- Startups & MSMEs (who build the solutions),
- Academia & labs (who help with R&D and testing).
- This public-private-defence partnership is a game-changer for innovation.
Emerging Issues
- Delayed Procurement: Protocol lags between prototype success and operational adoption remain.
- Scale-Up Bottlenecks: Startups often lack capacity for mass production post-prototype.
- Fragmented Coordination: End‑to‑end integration across DRDO, Service HQs, PSUs and startups is still evolving.
- Post‑grant Support: Continued mentoring/funding is necessary to transition from demonstration to deployment.
Suggestions:
- Implement fast‑track procurement corridors for ADITI winners.
- Establish Defence Innovation Hubs aligned with PSUs and OEMs for co-manufacturing support.
- Expand SIDBI Partner Incubator Fund to ensure continuity beyond ADITI grants.
- Strengthen monitoring dashboards (MIS) for real‑time tracking of funds, milestones, and procurement progress.
Way Forward
ADITI under iDEX represents a critical step in elevating India’s defence innovation architecture. By combining deep‑tech grants, startup incentives, and procurement linkages, it aligns with national goals of ₹3 lakh crore defence production and ₹50,000 crore exports by 2029. Continued success hinges on better execution protocols, ecosystem coordination, and global outreach ; for instance via INDUS‑X partnerships and international showcases inspired by Israel‑style innovation hubs.
For India to emerge as a truly global defence innovation leader by 2047, sustaining and scaling ADITI’s model will be essential. Strategic policy tweaking and stakeholder alignment can convert “Make in India 2.0” into a reality.
References
- Press Information Bureau (PIB). (2024, February 5). Defence Minister launches Acing Development of Innovative Technologies with iDEX (ADITI) Scheme.
https://pib.gov.in/PressReleasePage.aspx?PRID=2004255 - iDEX-DIO. (2024). About iDEX and ADITI Scheme – Ministry of Defence.
https://idex.gov.in/ - Ministry of Defence. (2024). Annual Report 2023–24.
https://ddpmod.gov.in/ - DRDO. (2024). SRIJAN Portal – Indigenisation List and Industrial Participation.
https://srijandefence.gov.in/ - Defence Acquisition Council. (2024). Positive Indigenisation List: Fifth edition.
https://www.mod.gov.in/dod/positive-indigenisation-list - Institute for Defence Studies and Analyses (IDSA). (2024). iDEX and ADITI: A New Frontier in Defence Innovation.
https://www.idsa.in/ (search: iDEX or ADITI articles) - Economic Times. (2024, Feb 6). QuBeats raises ₹25 crore to build quantum GPS for Indian Navy.
https://economictimes.indiatimes.com/tech/technology/qubeats-funding-defence-quantum/articleshow/107510223.cms - Observer Research Foundation (ORF). (2023). Catalysing Innovation in Indian Defence Sector through Startups.
https://www.orfonline.org/ (search: iDEX)
About the Contributor
Agamya Goyal is a Research Intern at IMPRI and is currently pursuing an M.A. in Economics from Isabella Thoburn College, Lucknow.
Acknowledgement
The author extends her sincere gratitude to the IMPRI team and Ms. Aasthaba Jadeja for her invaluable guidance throughout the process.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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