Co-develop and co-produce with India in niche tech for secured national interests and global stability & resilience: Raksha Mantri to German industry captains in Munich

The Ministry of Defence issued a policy emphasis calling for foreign defence partners to co-develop and co-produce niche and critical technologies with India...

What Happened

The Ministry of Defence issued a policy emphasis calling for foreign defence partners to co-develop and co-produce niche and critical technologies with India to serve secured national interests, moving beyond the traditional buyer-seller relationship.
The initiative specifically targets deep-tech and dual-use technologies where India seeks domestic capability: artificial intelligence, autonomous systems, underwater technologies, advanced materials, cybersecurity, and aerospace systems.
The call aligns with India's Atmanirbhar Bharat Abhiyaan in defence, the Defence Production and Export Promotion Policy (DPEPP) 2020, and the Defence Acquisition Procedure (DAP) 2020, all of which prioritise indigenous design, development, and production.
Mechanisms such as iDEX (Innovations for Defence Excellence), the Technology Development Fund (TDF), and the ADITI scheme are cited as frameworks to enable such collaboration involving domestic startups, MSMEs, and DPSUs.
As of early 2026, iDEX has issued 549 problem statements, awarded 430 contracts, and engaged 619 startups and MSMEs; the ADITI scheme targets approximately 30 deep-tech critical technologies by 2026.

Static Topic Bridges

iDEX — Innovations for Defence Excellence

iDEX is a flagship initiative of the Ministry of Defence, launched in April 2018 under the Defence Innovation Organisation (DIO). It provides financial grants and incubation support to startups, MSMEs, and individual innovators to develop disruptive technologies for defence and aerospace. iDEX operates through Challenges (problem statements issued by the Services) and Awards (grants up to Rs. 1.5 crore per innovator, extendable to Rs. 10 crore under iDEX Prime).

Launched: April 2018 at DefExpo
Funding: Rs. 498.78 crore sanctioned for five years (FY2021-22 to FY2025-26)
Contracts signed by early 2026: 430
Startups/MSMEs engaged: 619
Problem statements issued: 549
Technology domains: AI, robotics, cybersecurity, sensors, advanced materials, autonomous systems
iDEX Prime: for more complex, capital-intensive innovations (grants up to Rs. 10 crore)

Connection to this news: iDEX is the primary domestic mechanism through which co-development in niche technologies is channelled. The press release's call for foreign partners to co-develop with India directly complements iDEX by bringing global technical partners into collaboration with iDEX-selected Indian innovators.

Defence Acquisition Procedure (DAP) 2020 and Atmanirbhar Bharat in Defence

The Defence Acquisition Procedure (DAP) 2020, which replaced DPP-2016, introduced a revised procurement categorisation system that places indigenously developed and manufactured equipment at the apex of preference. It introduced new categories such as "Make in India (Global)" to attract co-production arrangements and mandated increasing domestic content percentages. The overarching policy framework is the Defence Production and Export Promotion Policy (DPEPP) 2020, targeting defence production of Rs. 1.75 lakh crore (USD 25 billion) and exports of Rs. 35,000 crore (USD 5 billion) by 2025.

Procurement category priority under DAP 2020: IC (Indian – IDDM) > IA (Indian) > IB > IC > II > III > IV (foreign)
DPEPP 2020 target: Rs. 1.75 lakh crore in defence production
Export target: Rs. 35,000 crore by 2025
India's actual defence exports in FY25: Rs. 21,083 crore (record high)
Positive Indigenisation Lists: Four lists issued; over 509 items reserved for domestic industry
MAKE procedure in DPP: First introduced in DPP-2006, progressively strengthened in 2016, 2018, 2020

Connection to this news: The emphasis on co-development and co-production in "niche" technologies is a direct implementation of DAP 2020's tiered procurement categories, which privilege joint ventures and technology transfer arrangements over outright foreign purchases.

Technology Development Fund (TDF) and ADITI Scheme

The Technology Development Fund (TDF) is a grant scheme under the Ministry of Defence to promote design and development of defence and dual-use technologies by Indian industry, academia, and startups in collaboration with DRDO. The ADITI (Acing Development of Innovative Technologies with iDEX) scheme, launched in 2023, provides grants up to Rs. 25 crore to develop approximately 30 critical and strategic deep-tech technologies identified as priorities for defence self-reliance by 2026.

TDF: Managed by DRDO; grants up to Rs. 50 crore per project for industry
ADITI: Targets ~30 deep-tech critical technologies; maximum grant Rs. 25 crore
ADITI focus: Space, quantum, cyber, AI/ML, advanced materials, directed energy weapons
International CRADAs: Indian startups like 3rdiTech have signed Cooperative Research and Development Agreements (CRADAs) with US defence agencies (USAF, Space Force)

Connection to this news: TDF and ADITI are the financial scaffolding for the co-development model being advocated. They allow foreign entities to bring in advanced technology while Indian firms contribute design, adaptation, and manufacturing, ensuring national control over the final product.

Key Facts & Data

iDEX launched: April 2018 at DefExpo
iDEX contracts awarded (by early 2026): 430
iDEX startups/MSMEs engaged: 619
iDEX problem statements: 549
iDEX funding allocation: Rs. 498.78 crore (FY2021-22 to FY2025-26)
ADITI scheme: targets ~30 deep-tech critical technologies, grants up to Rs. 25 crore
India's defence exports in FY25: Rs. 21,083 crore (record)
DPEPP 2020 production target: Rs. 1.75 lakh crore
DPEPP 2020 export target: Rs. 35,000 crore by 2025
Positive Indigenisation Lists: 4 lists; over 509 items reserved for domestic production
MAKE procedure first introduced: DPP-2006
DAP 2020 replaced: DPP-2016