India’s semiconductor policy is set to play a pivotal role in strengthening defence manufacturing, according to Navy Chief Admiral Dinesh K Tripathi. Speaking at an industry event, he emphasized that semiconductors are the “new oil” for the economy, highlighting their significance for both civilian and military advancements.
Private Industry’s Role in Defence Self-Reliance
Admiral Tripathi stressed that India’s self-reliance in defence hinges on greater private sector participation. He urged private companies, startups, and SMEs to take the lead in defence manufacturing, aligning with the government’s push for indigenization and technological innovation.
The Ministry of Defence (MoD) has earmarked ₹1 trillion from its modernization budget for the defence industry, with ₹450 crore allocated to the iDEX (Innovation for Defence Excellence) scheme. Launched in 2018, iDEX has already facilitated nearly 400 contracts and aims to support startups and SMEs in defence technology development.
Semiconductor Policy and its Impact on Defence
Admiral Tripathi highlighted that the semiconductor policy will be transformative for India’s military sector, particularly for the technology-driven Navy. The government has introduced financial incentives under the new policy, including grants of up to ₹1.5 crore for small projects and up to ₹25 crore under the Aditi scheme for advanced technologies.
The policy is expected to drive domestic semiconductor production, reducing India’s reliance on foreign supply chains and ensuring that critical military applications have access to secure and indigenous chip manufacturing.
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Shifting from Customers to Collaborators
The Indian Navy has adopted a new approach in its industry partnerships, moving from being a traditional buyer to an active collaborator. Task forces have been set up to engage with industry leaders, understand emerging technologies, and integrate solutions that meet future defence needs.
Admiral Tripathi reaffirmed that the Navy is ready to work closely with private players, fostering a dynamic ecosystem for innovation in defence manufacturing. The focus remains on leveraging cutting-edge technology, strengthening domestic capabilities, and ensuring India’s long-term security through indigenous production.
