For several years, discussions and debates around national security have centred on war machines, missiles, tanks, fighter planes, military exercises, troop mobilisation and border preparedness. However, in the rapidly changing world, modern warfare is increasingly evolving far away from traditional battlefields, inside research laboratories, semiconductor facilities, startup incubators, engineering classrooms and university campuses. This rapid transformation has rubbed off on higher education in India. Defence Research and Development Organisation (DRDO) funded laboratories inside IITs, IISc, IISERs and NITs producing world-class engineers, have created large pools of scientific talent. Startups are developing drones, autonomous underwater systems, quantum communication technologies, military AI systems, advanced materials, and semiconductor applications. Defence funding is beginning to flow into academic labs and deep-tech incubators in ways rarely seen before. The question now emerging is whether defence and strategic technology spending can become the organising force that finally connects India’s fragmented research ecosystem, bridging universities, laboratories, startups, manufacturing, and industry into a coherent innovation pipeline. At the centre of this shift lies another equally important question: where is the money coming from, and is India finally serious about funding long-term research and development at scale? How defence often builds civilian technology Historically, many technologies that later transformed civilian life originated in military-funded research ecosystems. The internet emerged from ARPANET, funded by the U.S. Defense Advanced Research Projects Agency (DARPA). GPS, initially designed for military navigation, later became essential for smartphones, logistics, and transportation. Silicon microchips, radar systems, satellite communication, advanced aerospace materials, weather satellites, and even voice-recognition technologies all grew out of defence-backed innovation. According to Prof. O.R.S. Rao, Chancellor of the ICFAI University, Sikkim, such breakthroughs happened because governments were willing to finance high-risk, long-term technological experimentation that private industry often avoided. “In the U.S., DARPA acted as the ultimate venture capitalist,” he said, noting that Cold War-era investments later fuelled Silicon Valley’s commercial success. Unlike commercial industries driven primarily by profitability, defence systems are funded by strategic necessity. This allows governments to support frontier technologies long before they become commercially viable. Experts increasingly believe India is now trying to build a similar defence-supported deep-tech ecosystem. India’s R&D deficitIndia’s Gross Expenditure on Research and Development (GERD) remains below 0.7% of GDP, far behind countries such as the United States, China, and South Korea. Prof. Rao pointed out that in innovation-led economies, private industry accounts for most R&D spending, whereas in India nearly 60% of research expenditure still comes from the government. Private firms often avoid deep-tech sectors because of high technological uncertainty, long development cycles, and heavy capital requirements. As a result, defence has emerged as one of the few sectors capable of sustaining large-scale investments in advanced technologies even without immediate commercial returns. Although India’s overall defence budget is among the world’s largest, only a small fraction goes into actual R&D. Much of the budget is spent on salaries, pensions, and imports. Traditionally, DRDO receives around five to six percent of the total defence allocation, and only part of that is dedicated to technology research. Experts repeatedly highlight the shortage of sustained research funding in India’s strategic technology ecosystem. Emerging sectors such as aerospace, semiconductors, defence electronics, quantum technologies, and advanced materials require massive investments in specialised testing facilities, manufacturing infrastructure, and long-term development programs. Unlike the U.S. and China, where corporations invest heavily in frontier research, India has historically depended on government institutions to finance advanced technology development. In 2022, Defence Minister Rajnath Singh announced that 25% of the defence R&D budget would be earmarked for private industry, startups, and academia. The same year, former DRDO chairman G. Satheesh Reddy stated that nearly ₹1,200 crore had been allocated to support defence research across roughly 300 academic institutions and 1,200 scholars. More recently, the government has stressed the importance of accelerating innovation in areas such as artificial intelligence, directed-energy weapons, hypersonic systems, quantum technologies, and advanced semiconductor research. Beyond DRDO, broader government initiatives have also expanded strategic research collaboration. The Ministry of Education’s SPARC programme has sanctioned nearly 800 joint research projects worth over ₹500 crore, including collaborations in space and defence technologies. New funding pipelinesGovernment allocations for defence R&D have steadily increased: • ₹21,330 crore in 2022–23 • ₹23,263 crore in 2023–24 • ₹23,855 crore in 2024–25 • ₹26,816 crore in 2025–26 In addition to DRDO allocations, the government has created multiple funding mechanisms, including: • Innovations for Defence Excellence (iDEX) • Technology Development Fund (TDF) • Defence Industry Academia Centres of Excellence (DIA-CoEs) • Extramural Research Funding • Defence Industrial Corridors • Startup incubation and testing infrastructure Prof. Rao explained that India increasingly follows the Technology Readiness Level (TRL) framework, which tracks how technologies evolve from theoretical research to deployable systems. At TRL-1, universities conduct basic scientific research. By TRL-3, they produce proof-of-concept systems. However, most Indian universities struggle to move beyond this stage because scaling technologies requires manufacturing support, industrial collaboration, field testing, and substantial funding. To bridge this gap, initiatives such as iDEX were launched in 2018 to support startups, MSMEs, universities, and innovators working on strategic technologies. Under iDEX: • Early-stage innovators can receive around ₹1.5 crore • PRIME grants can provide up to ₹10 crore • Advanced product-development stages can receive support up to ₹25 crore “This is more or less what India is trying to build — a defence-supported deep-tech ecosystem,” Prof. Rao said. Rise of defence-academic networks One of India’s most visible defence-academia initiatives today is the network of DRDO Industry Academia Centres of Excellence (DIA-CoEs). DRDO has established 15 centres across premier institutions including IIT Delhi, IIT Bombay, IIT Madras, IIT Hyderabad, IIT Kanpur, IIT Jodhpur, and IISc Bengaluru. These centres aim to bridge the gap between academic research and deployable military systems while supporting research in more than 80 advanced technology domains. Research areas include: • Artificial intelligence and autonomous systems • Quantum communication • Hypersonic propulsion • Aerospace systems • Advanced semiconductors • Brain-machine intelligence • Unmanned systems and drones • Smart defence textiles • Additive manufacturing • Stealth and surveillance technologies At IIT Delhi, researchers are working on ballistic protection systems, quantum communication, and high-speed imaging technologies. IIT Bombay focuses on aero-engines, hypersonics, and advanced aircraft structures. IIT Hyderabad researches AI for missile defence, space systems, and adaptive imaging technologies. IIT Kanpur works on flexible electronics, stealth systems, and military communications, while IIT Jodhpur specialises in desert warfare technologies and AI-based information warfare systems. According to retired naval officer Captain Abhijit Bhutey, the DIA-CoEs are intended to create a “well-directed research ecosystem” linking DRDO scientists, universities, startups, industries, and students to accelerate innovation in futuristic defence technologies. Experts believe India is moving toward much deeper integration between higher education, strategic technologies, and national security. Prof. V. Ramgopal Rao, former Director of IIT Delhi and Vice Chancellor of BITS Pilani, said advanced technologies such as AI, semiconductors, cybersecurity, aerospace systems, drones, and quantum communications are now simultaneously economic and strategic technologies. As a result, the distinction between civilian and defence applications is steadily disappearing. However, he warned that universities must preserve open inquiry and curiosity-driven science even while participating in strategic research. Sensitive projects require transparent review mechanisms, clear policies on intellectual property and publications, and voluntary student participation. “The concern is no longer whether universities should engage in defence-linked research,” he said, “but how to ensure such engagement strengthens rather than narrows higher education.” What is actually happening on campuses Unlike earlier university collaborations that focused mainly on academic publications, many current partnerships aim to develop deployable technologies. At IIT Mandi, researchers are collaborating with DRDO, the armed forces, ISRO, and defence public-sector companies such as BEL. Research areas include: • Unmanned systems and drones • AI and machine learning for surveillance • Communication systems • Quantum technologies • Biomedical engineering • Advanced manufacturing and 3D printing According to Air Vice Marshal P.K.H. Sinha, these collaborations now extend beyond isolated projects into long-term coordination involving faculty exchanges, startup incubation, technology hubs, and prototype development. The institute also hosts a Defence-Tech Startup Challenge under its iHub and HCi Foundation. The challenge addresses 13 problem statements provided by the Indian armed forces. Selected startups and innovators can receive grants of up to ₹50 lakh along with IP management and accelerated funding support. The prototype problem Despite increasing investment, experts repeatedly identified one major bottleneck: India struggles to convert laboratory research into operational systems. Prof. Rao explained this using the Technology Readiness Level framework. Most Indian research reaches only TRL-3 — the stage of proof-of-concept demonstrations and simulations. Beyond that point, technologies require: • Physical prototypes • Manufacturing support • Testing ecosystems • Field validation • Operational deployment This transition is expensive and institutionally complex. A prototype that works inside an IIT laboratory may fail under battlefield conditions in deserts, mountains, or maritime environments. As a result, defence technologies require repeated cycles of testing, redesign, and validation. Prof. Rao described defence innovation as a “tripod partnership” involving: • Universities • Industry and startups • Government and defence organisations Universities generate scientific ideas, industries manufacture and scale technologies, and defence agencies test systems under operational conditions. “No single institution can build defence capability alone,” he said. Government initiatives such as iDEX were designed specifically to bridge the gap between university research and deployment-ready systems by connecting researchers with funding, manufacturers, and testing infrastructure. Some IIT-linked startups have already crossed advanced deployment stages. Prof. Rao cited IdeaForge from IIT Bombay, whose drones are now supplied to the Indian Army for surveillance applications. He also mentioned Sagar Defence Engineering, which develops underwater autonomous systems and maritime drones for the Indian Navy. Challenges and talent gaps Despite progress, experts agree that India still faces severe structural weaknesses. Major General (Retd.) S.V.P. Singh said India lacks specialised expertise in several critical fields, including: • Semiconductor engineering • Quantum systems • Secure hardware • Metallurgy • Systems integration • Mission-oriented engineering Similarly, former ISRO scientist H.S. Jattana argued that India possesses strong technical talent but often fails to utilise or direct it effectively. He criticised the slow pace of decision-making within the defence R&D ecosystem and warned that India remains far behind China in building an integrated strategic research infrastructure. The need for academic balanceWhile defence partnerships may strengthen India’s technological self-reliance, several experts warned against excessive militarisation of higher education. Universities, they argued, must remain spaces for independent inquiry, multidisciplinary thinking, and curiosity-driven science. Strategic research should not undermine academic openness or reduce institutions into mission-specificsablishments. At the same time, experts believe defence may succeed where other sectors have failed by forcing collaboration between universities, laboratories, startups, and manufacturers around real-world technological problems. Prof. V. Ramgopal Rao argued that unlike many sectors lacking concrete technological demand, defence provides clear operational requirements, testing standards, and procurement systems. If managed correctly, defence-linked innovation could become one of the strongest drivers of advanced manufacturing, technology self-reliance, and research-led nation-building in India over the next decade. Civilian spilloverOne of the strongest arguments in favour of military R&D is that technologies developed for defence eventually spill over into civilian industries. According to Prof. Rao, technologies originally designed for missiles and aerospace systems later found applications in healthcare, transportation, engineering, communications, and civilian aviation. Indigenous medical stents developed under former President A.P.J. Abdul Kalam emerged from defence-related technological advances. Satellite communication systems, prosthetics, lightweight materials, secure communication networks, and advanced electronics similarly transitioned from military to civilian use. The big questionEven with rising budgets and expanding collaborations, experts remain divided on whether India is investing enough to build a globally competitive deep-tech ecosystem. While programmes such as iDEX and ADITI represent significant progress, India’s investments remain relatively modest compared to countries with mature military-industrial innovation systems. Still, experts agree that a shift is underway. India is increasingly attempting to use defence as the backbone of a national innovation ecosystem — one that could simultaneously strengthen strategic capability, advanced manufacturing, semiconductor development, startup ecosystems, and technological self-reliance. Whether this effort succeeds may ultimately depend on India’s ability to balance strategic priorities with scientific openness, institutional autonomy, and sustained long-term investment.