iDEX Scheme India’s Defence Startup Innovation Pathway

The iDEX scheme is India's flagship framework for defence startup innovation, launched in April 2018 under the Ministry of Defence. The pathway now combines challenge-led development, milestone-based SPARK funding and a procurement route under the Defence Acquisition Procedure 2020. At the National Defence Industries Conclave 2026, DISC 14 and ADITI 4.0 added 107 listed problem statements across the Services, Coast Guard and space domain. The wider conclave highlighted more than 200 problem statements across iDEX-linked challenges. (Press Information Bureau, 19 March 2026; iDEX, 2026)

Understanding what the scheme actually is

The iDEX scheme is the operational framework through which the Defence Innovation Organisation connects innovators with Indian defence requirements. The Defence Innovation Organisation, or DIO, operates as a Section 8 not-for-profit company under the Department of Defence Production, Ministry of Defence. (iDEX, 2026)

The distinction matters because iDEX is not simply a government grant programme. The Department of Defence Production describes iDEX as an innovation ecosystem and a route to procurement for the Armed Forces under DAP-2020. The framework is designed to move an identified defence requirement through development and user evaluation towards adoption. (Department of Defence Production, 2026)

The scheme was launched in April 2018 to engage startups, MSMEs, individual innovators, research institutions and academia in defence and aerospace technology development. Its stated objectives include faster development of indigenised technologies, stronger engagement between defence users and innovators, and technology co-creation. (Press Information Bureau, 2025; Department of Defence Production, 2026)

For a founder, this changes the question from "How do I get defence funding?" to a sharper one. Which defence problem can my technology solve, demonstrate and take through the acquisition system? That distinction is the foundation of the iDEX application process.

The iDEX model also creates a direct interface with defence users. A selected project receives a nodal agency relationship, technical milestones and evaluation requirements instead of operating like a conventional commercial startup grant. The product therefore has to progress against a military requirement, not only against an investor roadmap. Kodainya's coverage of India's drone manufacturing hubs tracks the industrial base behind that requirement side of the equation.

Tracing the origin of iDEX and DIO

The Defence Innovation Organisation provides the institutional layer behind the Innovations for Defence Excellence framework. DIO was established under the Department of Defence Production as a Section 8 not-for-profit company. iDEX functions as its operational framework. (iDEX, 2026)

The governance model separates policy direction from execution. DIO provides high-level policy guidance, while iDEX carries out the activities required to run challenges, evaluate proposals, support selected innovators and drive development. (Department of Defence Production, 2026)

The scheme itself has evolved through discrete inflection points. iDEX launched in April 2018 with the SPARK grant vehicle at ₹1.5 crore. iDEX Prime followed in 2020, raising the ceiling to ₹10 crore for higher-capital projects.

The ADITI scheme launched on 4 March 2024 at DefConnect 2024, taking the ceiling to ₹25 crore for strategic technologies. Three further ADITI editions have followed. ADITI 2.0 launched in October 2024, ADITI 3.0 later that month at Swavlamban, and ADITI 4.0 at NDIC 2026 in March 2026. (Press Information Bureau, 4 March 2024; Press Information Bureau, 7 October 2024; iDEX, 2026)

The original iDEX scheme received budgetary support of ₹498.78 crore for five years from FY 2021-22 to FY 2025-26. The scheme document targeted support for about 300 startups, MSMEs and individual innovators and around 20 Partner Incubators. (Department of Defence Production, 2026)

The ecosystem has since moved beyond the original scale. A Ministry of Defence release in March 2026 reported that 676 startups, MSMEs and innovators had joined the defence innovation ecosystem through iDEX. It also reported procurement clearance for 58 prototypes valued at ₹3,853 crore and 45 procurement contracts valued at ₹2,326 crore. (Press Information Bureau, 19 March 2026)

That progression is important for founders because it shows that iDEX has developed a measurable development-to-procurement funnel. The relevant question is no longer whether a startup can receive a grant. It is whether the startup can survive technical evaluation and create a product that a defence user can procure. That reframing sits at the centre of Kodainya's wider coverage of building a self-reliant drone industry.

Mapping the four challenge pathways

The iDEX framework uses challenge-led routes to connect defence requirements with innovators. The core challenge architecture includes Defence India Startup Challenges and the Open Challenge, while ADITI provides a higher-value route for critical and strategic technologies. iDEX Prime provides a higher grant ceiling for selected higher-capital projects. (iDEX, 2026; Department of Defence Production, 2026)

The Defence India Startup Challenge, or DISC, is the structured route for responding to problem statements issued by defence users. DISC 14 contains 82 problem statements from the Indian Army, Indian Navy, Indian Air Force and Indian Coast Guard, with a grant ceiling of ₹1.5 crore. (iDEX, 2026)

The Open Challenge works differently. Instead of waiting for a listed problem statement, an innovator can propose a technology addressing a defence or aerospace requirement. The iDEX portal describes the Open Challenge as a route for innovators, startups and MSMEs to engage with the military through DIO and Partner Incubators. (iDEX, 2026)

ADITI, or Acing Development of Innovative Technologies with iDEX, operates at a higher funding level. ADITI 4.0 carries 25 problem statements and offers grants up to ₹25 crore. (iDEX, 2026)

The current iDEX portal also lists DRISHTI Challenges. DRISHTI contains 101 problem statements from Defence Public Sector Undertakings, with projects managed and funded by the respective DPSUs. That makes DRISHTI structurally different from the core DIO-funded SPARK pathway and important for founders targeting DPSU requirements. (iDEX, 2026).

Reading the SPARK grant architecture

SPARK is the funding mechanism behind selected iDEX challenges. The name stands for Support for Prototype & Research Kickstart in Defence, and the grant supports startups, MSMEs and individual innovators selected through DISC, ADITI and Open Challenge routes. (iDEX, 2026)

The SPARK grant is not released as a single payment. The current iDEX FAQ defines a six-stage milestone structure under the SPARK Grant Agreement. Each tranche is tied to development progress and technical acceptance. (iDEX, 2026)

The structure creates a different cash-management model from conventional startup funding. A founder must plan engineering, procurement, testing and working capital around milestone release rather than treating the sanctioned amount as immediately available cash.

The iDEX financial FAQ also sets limits around eligible founder and core-team salary treatment under current SPARK practices. The published ceiling is ₹2.5 lakh per month per promoter or founder, with an annual increase provision, subject to the stated conditions and limits. (iDEX, 2026)

The practical implication is simple. A strong iDEX proposal needs both a technical architecture and a credible financial architecture. Engineering milestones, bill of materials, testing requirements, staffing and procurement timing must fit the grant structure.

Placing iDEX Prime and ADITI on the deep-tech ladder

iDEX Prime and ADITI extend the funding ladder beyond the standard SPARK ceiling. They exist because some defence technologies require substantially higher development expenditure, longer engineering cycles or deeper technology validation than a ₹1.5 crore project can support. (Department of Defence Production, 2026; Press Information Bureau, 4 March 2024)

iDEX Prime raises the grant ceiling to ₹10 crore for qualifying higher-capital projects. The current iDEX portal continues to publish Prime challenges with the ₹10 crore ceiling, including projects involving unmanned systems and advanced sensing. (Department of Defence Production, 2026; iDEX, 2026)

ADITI operates at the next funding level, with grants up to ₹25 crore. The scheme targets deep-tech strategic technologies, including areas such as artificial intelligence, autonomous systems, advanced cyber technology, semiconductors, quantum technology and underwater surveillance. (Press Information Bureau, 4 March 2024)

The distinction between the routes is therefore not simply about grant size. DISC is structured around defined problem statements and prototype development. Open Challenge gives innovators more room to originate the problem-solution proposition.

iDEX Prime and ADITI support projects where technical complexity and capital requirements justify a higher development ceiling. The Bhargavastra counter-drone system is one adjacent programme where higher development-capital pathways have been visible in the ecosystem.

A founder should select the route based on technology maturity, development cost and user requirement. Applying for the largest available grant is not a substitute for proving that the proposed capability requires that level of funding.

Navigating the eligibility gate

iDEX eligibility starts with the legal identity of the applicant and the nature of the proposed defence technology. The DDP iDEX page lists DPIIT-recognised startups, eligible Indian companies that qualify as MSMEs and individual innovators among the eligible applicant categories. (Department of Defence Production, 2026)

Individual innovators can apply without an existing registered entity. If selected as a challenge winner, the individual must establish an eligible legal entity before executing the iDEX Grant Agreement with DIO. (iDEX, 2026)

The application itself requires more than a technology description. The iDEX application process asks for entity information, a single point of contact, the relevant problem statement, requested funding level and technical and financial details. Applicants can also provide relevant patents, research papers and a tentative business plan. (iDEX, 2026)

The active-contract rule is another important gate. An entity can hold a maximum of five active iDEX contracts at a time, including one ADITI Challenge contract. Related entities with common founders, promoters or related parties are considered collectively under the rule. (iDEX, 2026)

This makes corporate structuring relevant to the iDEX application process. Creating another entity to bypass an eligibility restriction is expressly addressed in the current iDEX rules and can lead to ineligibility or cancellation of an award.

iDEX also sits alongside adjacent Indian defence-innovation schemes that founders should evaluate together. DRDO's Technology Development Fund supports industry-led R&D with a higher project ceiling on the R&D side. The Startup India Seed Fund Scheme addresses earlier-stage capital needs. iDEX remains distinct in its problem-statement-anchored pathway and its explicit Armed Forces procurement bridge.

Walking through the challenge-to-contract lifecycle

The iDEX application process begins with a technology mapped to a defence requirement. A startup selects a DISC, ADITI or Open Challenge opportunity, registers on the iDEX portal and submits the required technical and financial information. (iDEX, 2026)

The evaluation then moves through technical scrutiny and screening. The iDEX FAQ states that applications undergo preliminary scrutiny by the relevant Nodal Agency before shortlisted proposals reach the High Powered Screening Committee, or HPSC. The HPSC evaluates factors including relevance, innovation, feasibility, capability and viability. (iDEX, 2026)

Selection does not mean the product has entered military service. It means the startup has been selected to develop against an agreed requirement under the iDEX framework. The subsequent engineering work remains tied to milestones and technical acceptance.

The DAP-2020 architecture provides the procurement connection. Amendments to DAP-2020 created a simplified acquisition procedure for iDEX projects. The amendments established a Project Facilitation Team or nodal officer interface between the Service Headquarters and industry during prototype development. (Department of Defence Production, 2022)

The distinction between development and procurement is essential. DIO does not guarantee a Minimum Pilot Order Quantity. The concerned Nodal Agency specifies any such procurement commitment through the problem definition or product requirement. (iDEX, 2026)

Following the money and budgetary outlay

The iDEX funding architecture has expanded as the programme has moved towards higher-value technologies. The original five-year scheme carried ₹498.78 crore in budgetary support for FY 2021-22 to FY 2025-26. (Department of Defence Production, 2026)

For FY 2025-26, the Ministry of Defence reported an allocation of ₹449.62 crore for iDEX, including the ADITI sub-scheme. The same government release reported 549 problem statements, 619 startups and MSMEs involved, and 430 iDEX contracts signed as of February 2025. (Press Information Bureau, 2025)

The funnel math tells its own story. Of the 549 problem statements iDEX opened as of February 2025, 430 attracted startup contracts, a match rate of roughly 78 per cent. By March 2026, 58 of those contracted prototypes had received procurement clearance, representing a prototype-to-clearance conversion of about 13 per cent. The 45 procurement contracts signed by March 2026 sit at roughly 78 per cent of clearance-stage prototypes, indicating a strong terminal conversion once a prototype crosses evaluation.

The picture must be separated from procurement value. A grant pays for development. Procurement clearance represents a different stage where a defence user has accepted the technology sufficiently to move it towards acquisition.

By March 2026, the Ministry of Defence reported 58 prototypes worth ₹3,853 crore with procurement clearance and 45 procurement contracts valued at ₹2,326 crore. The figures show the widening gap between the initial grant and the eventual economic value of a successful defence product. (Press Information Bureau, 19 March 2026)

For founders, this is the central financial lesson of iDEX. The grant is development capital, not the final business model. A startup must build a product whose technical performance, manufacturing economics and user acceptance can support procurement after the funded development phase. That thinking overlaps with Kodainya's coverage of the PLI scheme for drones, the Drone Shakti mission, and the wider Make in India drones push.

Charting the current defence problem statement mix

DISC 14 and ADITI 4.0 show how the challenge pipeline is moving into autonomy, sensing, unmanned systems and other advanced defence technologies. DISC 14 contains 82 problem statements, while ADITI 4.0 contains 25. (iDEX, 2026)

The DISC 14 problem set includes an artificial intelligence module for an unmanned aircraft system for autonomous recognition, identification and targeting. It also includes swarm-based heavy-payload logistics drones with a 200 kg load capacity. (iDEX, 2026)

These requirements illustrate the type of engineering evidence a defence startup must prepare. A credible autonomy proposal needs measurable performance across perception, navigation, communications, mission planning and human control interfaces rather than a generic AI claim. That evidence bar is one reason schemes such as India's 100k drone force will be met by production teams rather than concept teams.

ADITI 4.0 moves into higher-value technology areas. Its published challenges include autonomous armoured vehicle conversion, terminally guided ammunition, a ramjet-powered supersonic loitering munition system and cognitive electronic warfare. (iDEX, 2026)

The current challenge mix also includes DRISHTI, where 101 problem statements originate from DPSUs. The DRISHTI model is funded and managed by the respective DPSUs, giving startups another route into defence industrial requirements outside the standard DIO-funded SPARK structure. (iDEX, 2026)

The important signal is the density of technical requirements. iDEX is no longer limited to early-stage hardware concepts. The challenge catalogue reaches into AI, autonomy, sensing, swarm coordination, advanced materials, electronic systems and complex defence platforms.

Tracking the drone and unmanned systems signal

The iDEX challenge catalogue has moved decisively into unmanned systems. DISC 14 alone lists an artificial intelligence module for autonomous UAS recognition and targeting, alongside swarm-based heavy-payload logistics drones with a 200 kg lift capacity. It also lists drone-based calibration systems for airfield navigational infrastructure and a Ku-band radar for drone detection. (iDEX, 2026)

ADITI 4.0 extends this into higher-cost unmanned systems. Its published challenges include a ramjet-powered supersonic loitering munition system, cognitive electronic warfare, autonomous armoured vehicle conversion, and terminally guided ammunition. (iDEX, 2026)

The pattern matters for founders. It shows that iDEX no longer funds only early-stage hardware experiments.

The scheme now channels prototype development toward the capability areas that will define India's next decade of unmanned warfare. Those areas include swarm coordination, autonomous ISR, precision loitering munitions, counter-UAS radar, and platform-level electronic warfare. (Press Information Bureau, 19 March 2026)

For a drone startup, this changes the operating question. The founder is no longer choosing between civilian utility and defence use. The founder is choosing which unmanned capability to build with development capital that comes with a route to Armed Forces procurement.

The industrial base behind this shift is also thickening. India's designated defence corridors, Uttar Pradesh and Tamil Nadu, provide the manufacturing anchors for platforms that graduate from iDEX prototypes into serial production. Founders should map their supply chain, testing, and certification pathway against corridor infrastructure early, not after grant closure.

Kodainya's defence drones in India pillar tracks the platform side of this pipeline in depth. See also the coverage on loitering munitions in India and India's drone corridors for the industrial infrastructure that turns iDEX prototypes into deployed capability.

Bridging iDEX to DAP-2020 and Make-II

The procurement bridge is what separates iDEX from a conventional innovation grant. DAP-2020 places iDEX within the defence acquisition framework, allowing innovative solutions developed through iDEX to move towards procurement through the applicable acquisition process. (Department of Defence Production, 2026)

The DAP-2020 amendments established a simplified procedure for acquisition through iDEX. They specify a Project Facilitation Team or nodal officer as the interface between the Service Headquarters and industry during development, followed by prototype review and user trials. (Department of Defence Production, 2022)

iDEX and Make-II are related but they are not identical mechanisms. iDEX funds and manages selected innovation projects through its own framework, while Make-II is a procurement category under DAP-2020 that supports industry-led development against defence requirements.

The relationship matters because an iDEX-funded product can become relevant to broader procurement. The current iDEX FAQ states that a product developed for one Nodal Agency may also be procured by another Nodal Agency within the prescribed DAP limits. (iDEX, 2026)

The bridge still has a hard gate. DIO does not certify a product as "fit for military use". That certification belongs to the concerned Nodal Agency. (iDEX, 2026)

For a founder, procurement readiness must therefore begin during prototype development. Testing evidence, configuration control, manufacturing repeatability, documentation, cybersecurity, maintainability and supply-chain planning should not be postponed until after the technical milestone is complete. The commercial procurement side of the story continues through channels such as the GeM portal for drone procurement.

Reviewing outcomes and the Partner Incubator network

Partner Incubators provide the ecosystem layer around iDEX. The original iDEX scheme targeted about 20 Partner Incubators, with the role of providing mentorship, incubation and acceleration support to selected startups and MSMEs. (Department of Defence Production, 2026)

The network also helps connect defence requirements with the broader academic and startup ecosystem. The Ministry of Defence announced a ₹50 crore allocation by SIDBI for ten leading Partner Incubators in October 2024, expanding the support infrastructure around defence innovation. Ten Partner Incubators received the allocation, led by anchors such as FITT at IIT Delhi, SINE at IIT Bombay, and T-Hub at Hyderabad. (Press Information Bureau, 7 October 2024)

The outcome data shows why this layer matters. By February 2025, iDEX had opened 549 problem statements, engaged 619 startups and MSMEs and signed 430 contracts. By March 2026, the Ministry of Defence reported 676 startups, MSMEs and innovators in the ecosystem, alongside procurement clearances and signed procurement contracts. (Press Information Bureau, 2025; Press Information Bureau, 19 March 2026)

For founders, an incubator should therefore be evaluated as part of execution capacity, not only as a networking channel. Defence engineering requires access to laboratories, domain experts, test infrastructure, manufacturing partners and user feedback. The right ecosystem can shorten the path between a technology demonstration and a defensible product architecture. Kodainya's coverage of India's drone manufacturing ecosystem profiles the engineering base founders can plug into.

Preparing an iDEX application for execution

A strong iDEX application starts with the defence problem, not the startup pitch. The proposal should identify the operational requirement, define the proposed capability and show how the technology will produce measurable improvement against the stated requirement.

The technical plan should then connect architecture to milestones. For an autonomous UAS, that could include perception performance, navigation reliability, communications resilience, mission autonomy, edge inference and controlled human interaction. Each milestone should produce evidence that a Nodal Agency can evaluate.

The financial plan should follow the same logic. SPARK releases funding against milestones, so the founder needs a development schedule that connects engineering work, procurement, personnel and testing to each tranche. The proposal should show why the requested grant level matches the actual development requirement. (iDEX, 2026)

The application also needs procurement awareness. DAP-2020 provides the acquisition bridge, but iDEX does not guarantee a pilot order or military-use certification. Those decisions remain with the relevant Nodal Agency. (iDEX, 2026)

For defence startups, the strongest operating model is therefore to build the company around three linked systems: engineering evidence, programme execution and procurement readiness. AI can accelerate design, simulation, computer vision, sensor fusion and edge inference, but the defence customer still evaluates the demonstrated capability.

The current challenge pipeline makes that discipline more important. DISC 14, ADITI 4.0, iDEX Prime, Open Challenge and DRISHTI create multiple entry points. Each route still rewards a technology that can move from proposal to measurable capability.

iDEX is now a pathway into India's defence industrial base. The next advantage will belong to startups that arrive with mature engineering evidence before the challenge window opens.