The government’s aim to facilitate deep tech investments to augment defence systems and security infrastructure is a step in the right direction
The latest Defence Budget has placed notable emphasis on facilitating deep technology investments, in line with the government’s unwavering push towards “Aatmanirbharta”. Militaries around the world have begun tapping into their deep tech startup ecosystems to find innovative solutions to defence challenges. Countries like the United States (US), France, and Germany, and groupings like the European Union (EU) are actively exploring potential military applications across emerging technologies like artificial intelligence (AI), robotics, augmented reality, amongst others. Deep technologies like AI, big data analytics, blockchain, robotics, quantum computing, etc. have extensive applications in augmenting defence systems and security infrastructure. Given the changing contours of warfare in India’s neighbourhood, the intent of timely investment in such technology is a strategic move that will not only put India ahead with respect to its adversaries but also be advantageous in future battlefields. However, while the allocation of INR 1 lakh crore towards long-term deep tech loans for youth and companies seems to be a step in the right direction, it is still early to predict the future course as investments in deep tech, focused particularly in the defence sector remain unclear.
Given the changing contours of warfare in India’s neighbourhood, the intent of timely investment in such technology is a strategic move that will not only put India ahead with respect to its adversaries but also be advantageous in future battlefields.
Deep tech in defence holds crucial importance today. Militaries realise that aspects like automated logistics through robotics and drone swarms, AI-aided projection and planning, and augmented soldiers through brain-machine interfaces can transform strategic and tactical capacities on and off the battlefields. Additionally, overcoming adversity through innovations in drone technology, quantum computing, hypersonic delivery mechanisms, etc. can aid armed forces in better preparing against their adversaries. Essentially, the unprecedented asymmetry introduced by disruptive capabilities has sparked interest even in smaller countries like Ukraine.
In India's case specifically, deep tech aligns perfectly with the aspirations of ‘Atmanirbharta’ as mentioned in the defence budget, thereby, reducing import burdens. Emerging startups can be incentivised to build solutions in areas like AI-powered satellite analytics, automated logistics drones, and secured quantum communications systems that cater to context-specific military problem statements and challenges. Domains like ruggedised electronics, survivability equipment and reliable cold weather systems can overcome geographic and terrain constraints faced by India. Furthermore, the asymmetric capabilities offered by innovations like lethal autonomous drones, advanced munitions, high altitude sensors, etc. also maximise warfare potentials without excessive platform costs. Hence, the rapid indigenisation and flexibility promised by next-gen technologies make them a strategic priority from both capacity and budget perspectives for India.
Emerging startups can be incentivised to build solutions in areas like AI-powered satellite analytics, automated logistics drones, and secured quantum communications systems that cater to context-specific military problem statements and challenges.
The recent budgetary support for deep tech and startups aligns well with defence innovation programmes like (iDEX) launched in 2018. iDEX provides grants to startups and connects them to incubation facilities while floating problem statements by the armed forces for innovative solutions. The Department of Defence Production has approved funding of approximately INR 500 crore for the Innovations for Defence Excellence (iDEX) scheme under the Defence Ministry over the next five years starting 2021-22. This scheme aims to boost indigenous innovation in defence technology by financing startups, MSMEs, and individual innovators through the Defence Innovation Organisation (DIO).
With the prospects of the budget now spurring deep tech investments explicitly, iDEX can double down on sponsoring startups in emerging tech domains like AI, quantum, nanotech, etc. other than just focusing on conventional engineering products. iDEX must expand its horizon beyond traditional defence manufacturers to tap the potential of ventures specialising in scientific breakthroughs across cutting-edge disciplines.
iDEX must expand its horizon beyond traditional defence manufacturers to tap the potential of ventures specialising in scientific breakthroughs across cutting-edge disciplines.
The framework to test concepts quickly through design partnerships followed by upscaled production promises faster tech assimilation in the forces. But truly disruptive indigenisation requires investing in the building blocks of next-gen technologies through all stages: research, experimentation, and implementation support. It is where initiatives like iDEX can play a major role in shaping India’s deep tech innovation.
India's aspirations to utilise deep tech capabilities to its advantage come with several structural and technological challenges. The initial investment of INR 1 lakh crore proposed in the interim budget is set for a period of 50 years. Therefore, even if INR 2000 crores is invested yearly, it is too early to predict the returns. Moreover, the focus of investment is largely civilian and made for commercial purposes, which could spur spin-off for deep tech in defence. It is important to note that not all deep tech innovations will have dual or military uses.
Building renowned R&D ecosystems within premier institutions like the Indian Institute of Technology (IIT) is integral for talent development and idea incubation.
Beyond budgetary constraints, the lack of skilled manpower well-versed in niche domains like quantum computing, AI, and nanotechnology, amongst others, is a bigger challenge. Building renowned R&D ecosystems within premier institutions like the Indian Institute of Technology (IIT) is integral for talent development and idea incubation. Similarly, ensuring regular funding avenues, consistency in large mission-mode projects and proactive stabilisation of startups through corporate partnerships for specialisation absorption are imperative for impactful output. Holistic execution from research to product development is emerging positively but it needs to stand the test of time. Addressing issues across the value chain—right from nurturing talent to providing integration support for cutting-edge solutions into defence systems—is vital for the fruits of deep tech research to translate into real military capabilities. A combination of academic rigour, investment consistency, commercialisation pathways, and public-private vision alignment is the recipe for India to reap fruits from its deep tech quest.
Ankit K is a New Delhi-based analyst who specialises in the intersection of Warfare and Strategy.
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Ankit K is New Delhi-based analyst who specialises in the intersection of Warfare and Strategy. He has formerly worked with a Ministry of Home Affairs ...
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