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Budget 2024: How Critical Is Deep Tech For Bolstering India’s Defence Sector?

Deep tech refers to the integration of advanced technologies such as artificial intelligence, machine learning and robotics into various sectors, including defence.

<div class="paragraphs"><p>(Source: Pok Rie/Pexels)</p></div>
(Source: Pok Rie/Pexels)

In the Interim Budget 2024, Finance Minister Nirmala Sitharaman’s announcement about the development of deep tech for India’s defence, on top of the Rs 1-lakh-crore surplus for 50-year interest-free loans, is an indicator of the criticality of technology to bolster the defences of the country.

While the defence budget is pegged at Rs 6.21 lakh crore for 2024-25, Sitharaman announced that a new scheme will be launched for strengthening deep-tech technologies for defence purposes and expediting “atmanirbharta” (self-reliance).

Commenting on the announcement, Nandini Tandon, co-founder and chief people officer of Indusface, said, “The focus on deep-tech technologies for defence purposes underscores the importance of self-reliance and innovation in critical sectors.”

What’s The Role Of Deep Tech In Defence And National Security?

Deep tech refers to the integration of advanced technologies such as artificial intelligence, machine learning and robotics into various sectors, including defence. Over the past decade or so, the use of deep tech has revolutionised the way military operations are conducted. These technologies have significantly enhanced the capabilities of armed forces of nations such as US, Israel, China and Germany, enabling them to be more efficient, accurate and effective in their operations.

Autonomous systems such as unmanned aerial vehicles and unmanned ground vehicles are now widely employed for surveillance, reconnaissance and even combat missions by countries like the US. These systems can navigate through difficult terrains and gather real-time intelligence with minimal human intervention, thereby reducing the risk to human lives.

Defence cybersecurity is another area where the role of deep tech is crucial. As the reliance on digital systems by defence forces increases, so does the threat of cyber attacks. Deep-tech solutions such as advanced encryption algorithms, ML-based anomaly detection systems and secure communication networks have been developed to protect military networks from cyber threats. These technologies enable early detection and response to potential attacks.

AI algorithms can also be used to analyse vast amounts of data and identify patterns that can be used for strategic advantage. Deep tech has also enabled the development of advanced sensors and surveillance systems that provide real-time intelligence, enabling commanders to make informed decisions quickly.

Rising Importance Of Deep Tech Startups

In India, research and development of defence systems has been the purview of government-owned organisations like DRDO, primarily because small-scale private corporations find it difficult to devote long-term capital to such projects. However, if the dual announcements of long-term interest-free loans for innovation and deep tech in defence are any indication, the scheme will support private players and startups to undertake joint research and deep-tech deployment into the Indian defence sector.

Manoj Nair, head of India GDC, Fujitsu India, said that the corpus of Rs 1 lakh crore will “encourage the private sector to scale up research and innovation significantly in sunrise domains". This will “help the nation strengthen capabilities in the deep tech sector". 

While bigger private players have a predominant role in India’s defence industry, startups are picking up pace. The government is trying to create equal opportunities and decrease entry barriers for entrepreneurs and startups through the Innovations for Defence Excellence programme and the 'Make In India' initiative. The finance minister indicated that private players will be encouraged and impetus will be given to deep tech startups working in the defence sector.

According to Nasscom, there are more than 3,000 deep-tech startups in the country, growing at a compound annual growth rate of 53%, including in areas such as drones, robotics, geographical information systems and surveillance.

By leveraging their expertise in AI, ML, robotics and cybersecurity, these startups can continuously innovate and push the boundaries of technology. They can help develop innovative solutions for the defence industry, including advanced weapons systems, autonomous drones and robotic systems, next-generation sensor technologies for target detection and tracking, and cybersecurity solutions such as threat detection and prevention tools, encryption technologies and secure communication networks.

The Future: Deep Tech-Enabled Defence

The use of deep tech has the potential to transform both defensive and offensive strategies for possible future conflicts, along with strengthening national security. As technology continues to advance, it is expected that deep tech will play an even more significant role in shaping the future of India’s defence.

With China already having a strategy for “innovation-driven development” along with its aim to make “national defence technologies reach world-leading levels,” it is about time India leverages deep tech to gain a competitive edge in its defence operations.