Defence Innovation Organisation

The Defence Innovation Organisation (DIO) is a Section 8 (not-for-profit) company formed in 2018 by two Defence Public Sector Undertakings, Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL), under the aegis of the Department of Defence Production, Ministry of Defence, Government of India. DIO manages and funds Innovations for Defence Excellence (iDEX), the flagship scheme of the Ministry of Defence for fostering innovation in defence and aerospace through engagement with startups, MSMEs, individual innovators, and incubators.

DIO operates from New Delhi and has supported over 650 startups through the iDEX framework. The organization provides grants of up to ₹1.5 crore per project through the SPARK (Support for Prototype and Research Kickstart) framework.

Role in the Startup Ecosystem

DIO and iDEX have opened up India's defence procurement process to startups and small companies for the first time. Traditionally, defence contracts in India were awarded to large public sector enterprises or established private defence firms. iDEX has created a structured pathway for startups to develop prototypes, test them with the armed forces, and eventually win procurement orders. This has spawned an entirely new category of defence-tech startups in India.

Programs and Initiatives

DIO runs iDEX through two main channels: Defence India Startup Challenges (DISC), which pose specific problem statements from the armed forces, and the Open Challenge, which accepts innovative proposals from startups in any defence-relevant domain. Selected startups receive funding through SPARK grants, access to defence testing facilities, mentorship from military and industry experts, and a pathway to procurement contracts. The iDEX program also partners with incubators like IIMA Ventures, FITT IIT Delhi, and others to provide startup support infrastructure.

Notable Alumni

Notable startups from the iDEX ecosystem include ideaForge (India's leading drone maker, now publicly listed), Tonbo Imaging (electro-optics and AI for defence), and NewSpace Research & Technologies (space and defence systems). These companies have gone from iDEX-funded prototypes to active defence suppliers.

Who Benefits

Deeptech startups and MSMEs building products in drones, robotics, AI for defence, cybersecurity, communication systems, advanced materials, space technology, and other defence-relevant domains. The program is particularly valuable for hardware startups that need access to testing infrastructure and a clear path to government procurement.

Strategic Impact

DIO has been central to India's push for self-reliance (Atmanirbhar Bharat) in defence. By channeling startup innovation into defence procurement, it has reduced India's dependence on imports while creating a new market for Indian deeptech companies. The program has grown to support around 1,000 defence startups, making it one of the largest defence innovation programs globally.