New Delhi plans to tap a pool of more than 650 companies under the Innovation for Defense Excellence initiative

Indian defense forces march through the ceremonial Kartavya Path boulevard during India's Republic Day parade celebrations in New Delhi, India. ©  AP Photo / Channi Anand

 

India is keen to have a defense “unicorn” from its startup pool, a senior official said on Tuesday, referring to the term for a private startup that achieves a $1 billion valuation.

At an interaction with over 650 startups at the Innovations for Defense Excellence (iDEX) conference, Defense Minister Rajnath Singh called on entrepreneurs to work towards setting up a unicorn.

”India has more than 100 unicorns today, but none in the defense sector,” he said. “Let the first unicorn emerge from among you – it will be a matter of pride for the nation.”

Domestic defense capital acquisitions will rise from just below $8.5 billion in the 2021-22 fiscal year to more than $13.5 billion in the 2024-25 fiscal year.

New Delhi has announced a string of initiatives in the defense sector. To boost micro and small enterprises (MSEs), the government has implemented a policy to procure 25% of the annual defense requirement from MSEs in 2022-23.

India now procures more than 350 products from MSEs, the minister said. “Self defense is no longer a slogan – it is a movement powered by innovation, startups, and youth,” Singh added.

 

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The country has also noted the concerns raised by its defense establishment amid a reported boost in militarization along its borders.

The Defense Acquisition Council (DAC) approved capital acquisition proposals worth $6.51 billion in March, followed by a nod for another tranche of $11.8 billion in July.

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The DAC, led by Singh, also greenlighted the acquisition of more BrahMos missiles and armed drones, and a comprehensive annual maintenance contract for the S-400 air defense missile system.

India is among the world’s top defense importers and has historically partnered with Russia for equipment and technology.