Funding and Support for MSMEs and Startups
The Defence Ministry’s Technology Development Fund (TDF) scheme has significantly supported the growth of MSMEs and startups in India’s defence sector. Since January 2022, the scheme has provided backing to 16 MSMEs and 20 startups, aiming to promote indigenously developed defence technologies. In the last year alone, Rs 120 crore has been allocated to these industries, with Rs 43.89 crore disbursed as grants.
TDF Scheme’s Impact Over Five Years
Over the last five years, the TDF has sanctioned 42 projects worth Rs 182.41 crore to MSMEs and 25 projects worth Rs 59.47 crore to startups. The scheme has been instrumental in fostering innovation, with 26 technologies successfully developed to date. These projects are part of India’s broader push for self-reliance in defence manufacturing and technology.
New Initiatives to Foster Defence Innovation
Earlier this year, the Defence Minister launched the Acing Development of Innovative Technologies with iDEX (ADITI) scheme. With a corpus of Rs 750 crore, ADITI aims to foster critical defence innovations by providing grants up to Rs 25 crore to startups for research and development. This initiative, which operates until 2026, targets the creation of 30 deep-tech, strategic defence technologies, and is part of the larger Innovations for Defence Excellence (iDEX) framework.
PM Modi’s Support for MSMEs in Defence Sector
In October, Prime Minister Narendra Modi highlighted the role of MSMEs in defence manufacturing while inaugurating the new C-295 aircraft facility in Vadodara, a collaboration between Tata and Airbus. The PM emphasized that the facility will provide significant benefits to micro, small, and medium enterprises (MSMEs), further strengthening the country’s defence sector.
