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Guide 03 Indigenisation and Make in India

How do iDEX, DISC and ADITI fund defence startups and MSMEs?

iDEX, Innovations for Defence Excellence, is the operational framework of the Defence Innovation Organisation that funds startups, MSMEs and individual innovators to build defence prototypes. Winners of its DISC and Open Challenges receive grants of up to Rs 1.5 crore; ADITI, for critical and strategic technologies, funds up to Rs 25 crore, released against milestones.

Topic
Indigenisation and Make in India
Checked
23 September 2026
Sources
2
Questions
5

01

What iDEX funds and how a winner is paid

iDEX winners sign a SPARK grant agreement and build prototypes for the armed forces, DPSUs and other nodal agencies. Grants are released in six milestones: 10 percent at milestone 0, 20 percent each at milestones 1 to 4, and the final 10 percent at milestone 5, so a firm has to keep delivering against the agreed plan to draw down the full amount rather than receiving it upfront.

02

DISC, ADITI and Open Challenge: which route fits

In the Defence India Startup Challenge and in ADITI, the problem statement comes from a Service, the Coast Guard, a DPSU or another nodal agency, and is open for a fixed window; ADITI specifically targets critical and strategic technologies and pays up to Rs 25 crore per winner. In an iDEX Open Challenge, the innovator frames both the problem and the proposed solution and submits it on its own initiative, with grants up to Rs 1.5 crore.

iDEX funding routes compared

DISC / Open Challenge grant
Up to Rs 1.5 crore
ADITI grant
Up to Rs 25 crore
Who sets the problem in DISC / ADITI
A Service, Coast Guard, DPSU or nodal agency
Who sets the problem in Open Challenge
The innovator, submitted on its own initiative

03

Who can apply

iDEX funds startups, MSMEs and individual innovators, with turnover eligibility following the DPIIT definitions for startups and MSMEs. Joint ventures and consortia of companies are not eligible to apply, though a single applicant may respond to several problem statements within the same DISC or ADITI edition. Read the specific problem statement's eligibility clause before preparing a proposal, since individual challenges can narrow this further.

04

The latest challenge and what to watch

On 19 March 2026, at the National Defence Industries Conclave, the Ministry of Defence launched DISC-14 and ADITI 4.0 together, with 107 problem statements: 82 under DISC-14 and 25 under ADITI 4.0, drawn from the defence forces, the Indian Coast Guard and DPSUs. Watch idex.gov.in for the next edition's opening date and problem statement list rather than assuming the same numbers repeat.

Asked next

Questions people also ask

How do iDEX, DISC and ADITI fund defence startups and MSMEs?

What is the difference between iDEX, DISC and ADITI?

iDEX is the overall framework; DISC and ADITI are challenge formats run under it. DISC and Open Challenge grants run up to Rs 1.5 crore. ADITI is reserved for critical and strategic technologies and pays up to Rs 25 crore. In DISC and ADITI the problem statement is set by a Service, the Coast Guard, a DPSU or another nodal agency; in an Open Challenge, the innovator sets it.

How is an iDEX grant actually paid to a winner?

Under the SPARK grant agreement, iDEX pays in six milestones: 10 percent at milestone 0, 20 percent at each of milestones 1 to 4, and a final 10 percent at milestone 5. Each release depends on meeting that milestone's deliverables, so cash flow planning has to assume staged payment rather than a lump sum at signing.

Can a joint venture or consortium apply to iDEX?

No. iDEX's own published guidance states that joint ventures and consortia of companies are not eligible to apply; the grant goes to a single startup, MSME or individual innovator. Firms that want to collaborate typically structure the work as one lead applicant with the other party as a subcontractor or technology partner outside the iDEX agreement itself.

What problem statements were open under DISC-14 and ADITI 4.0?

Launched on 19 March 2026, DISC-14 and ADITI 4.0 together carried 107 problem statements, 82 under DISC-14 and 25 under ADITI 4.0, sourced from the defence forces, the Indian Coast Guard and DPSUs. Each edition's statements differ, so check idex.gov.in directly for the currently open list rather than relying on a past edition's numbers.

Does an MSME need Udyam registration to apply to iDEX?

iDEX's eligibility for MSME applicants follows the standard MSME definition, which in practice means Udyam registration, since that is how MSME status is established in India. Startups instead follow the DPIIT startup definition. Confirm the exact wording against the specific problem statement's eligibility clause, since iDEX sets the applicable criteria challenge by challenge.

Checked against

Sources

  1. 01iDEX frequently asked questions: grants, milestones and eligibility, Innovations for Defence Excellence (iDEX)
  2. 02DISC-14 and ADITI 4.0 launched with 107 problem statements, Innovations for Defence Excellence (iDEX)

This guide explains how the system works in general, as the documents above describe it, and was last checked on 23 September 2026. Rules and thresholds change: the governing document is the authority, not this page.

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