iDEX 2.0: ₹1,000 Cr Fund Fuels 300+ Defence Startups in FY25

The Innovations for Defence Excellence (iDEX) 2.0 framework has achieved a landmark milestone, with over 300 defence startups receiving funding, mentorship, and procurement orders in FY25, backed by a ₹1,000 crore corpus announced in the Union Budget 2025. Launched under the Department of Defence Production (DDP), iDEX 2.0 has evolved from a challenge-based grant model to a full-spectrum innovation ecosystem supporting equity investment, production scaling, and export facilitation.

From Grants to Production Orders

As of October 22, 2025, 68 startups have secured firm procurement orders worth ₹450 crore from DPSUs and the armed forces (source: MoD iDEX Progress Report, 22 Oct 2025). This marks a 300% increase in order value compared to FY24.

Top-performing startups include:

• Tonbo Imaging (Bengaluru): Night-vision and IR sensors integrated into INS Androth ASW suite
• IdeaForge (Mumbai): Netra-class swarm drones linked to Akashteer for real-time targeting
• Big Bang Boom Solutions (Chennai): AI-based fire control system for Tejas Mk-1A
• CRON Systems (Delhi): Border intrusion detection using LiDAR and AI

12 Innovation Challenges in 2025

iDEX conducted 12 themed challenges in 2025, focusing on:

• Quantum-secure communication (50-km QKD trial)
• Hypersonic material coatings
• Underwater acoustic sensors for Scorpène-class
• AI-driven predictive maintenance for T-90 tanks

Winners receive up to ₹10 crore in grants, DRDO lab access, and fast-tracked integration into operational platforms. The program has filed 420 patents, with 100% Indian IP ownership retained by startups.

Integration with Major Platforms

iDEX innovations are now embedded in flagship programs:

• Akashteer: AI swarm neutralization from IdeaForge
• Tejas Mk-1A: Avionics software from Big Bang Boom
• Scorpène submarines: Hull-mounted sensors from Tonbo
• Project Kusha: GaN radar modules from NewSpace Research

Funding & Economic Impact

The MoD’s 51% capital spend has enabled iDEX to co-fund production scaling with ₹200 crore in PLI incentives. Startups now contribute 12% of India’s defence export value, including:

• Anti-drone systems to UAE
• Sonar buoys to Vietnam
• EO pods to Malaysia

iDEX has created 15,000 direct jobs and attracted ₹2,200 crore in private VC investment. The program has 50% first-time entrepreneurs, with 40% women-led teams.

DAC November & Future Roadmap

The DAC meeting on November 23, 2025 will consider ₹300 crore for iDEX integration into AMCA, Project 76, and nuclear submarine programs. A ₹500 crore export promotion fund is also on the agenda.

“iDEX is the engine of Atmanirbhar Bharat—turning ideas into weapons, and startups into strategic assets.”
— Giridhar Aramane, Defence Secretary (iDEX Conclave, 18 Oct 2025)

With 300+ active startups and ₹1,000 crore deployed, iDEX 2.0 is not just funding innovation—it’s rewriting India’s defence industrial base.