India and U.S. Launch INDUS-X to Strengthen Defense Innovation and Industrial Cooperation

New Delhi, June 22, 2023 – The Ministry of Defence (MoD) of India and the U.S. Department of Defense (DoD) have jointly introduced the India-U.S. Defense Acceleration Ecosystem (INDUS-X) to expand the strategic technology partnership and defense industrial cooperation between the two nations. This initiative builds upon the commitment made by the Indian and U.S. National Security Advisors earlier this year to establish an “Innovation Bridge” connecting defense startups from both countries as part of the U.S.-India initiative on Critical and Emerging Technology (iCET). The MoD’s Innovations for Defence Excellence (iDEX) and the DoD’s Office of the Secretary of Defense (OSD) will lead INDUS-X activities on their respective sides.

INDUS-X aims to foster closer collaboration between the private sectors, research institutions, and the governments of India and the United States. By strengthening ties within their defense industrial ecosystems, both countries aspire to enhance innovation, accessibility, and resilience in the defense sector.

To kickstart the INDUS-X initiative, a two-day catalyst event took place at the U.S. Chamber of Commerce, bringing together defense innovation stakeholders from government bodies, academic institutions, research organizations, investors, defense firms, technology incubators, industry associations, and other startup enablers. During the event, ambitious initiatives were developed to propel INDUS-X forward.

The collaboration agenda, formulated during the event, outlines prospective actions for INDUS-X stakeholders, establishing a framework to advance defense innovation between India and the United States. The agenda provides timelines and metrics to measure progress in implementing collaboration initiatives envisioned under INDUS-X. Stakeholders involved in INDUS-X have expressed their commitment to advancing this collaboration agenda through various efforts:

1. Bilateral Cooperation Mechanism:
   • A Senior Advisor Group (SAG) will assess the progress of the collaboration agenda, making recommendations to defense establishments and other INDUS-X stakeholders for future work. Roundtables convened by USIP, Carnegie India, and the Society of Indian Defence Manufacturers (SIDM) will drive implementation of the collaboration agenda at a working level and identify any barriers for the SAG’s consideration.
2. Industry and Academia-Led Initiatives:
   • Mentor-Protégé Partnerships for Startups: Indian and U.S. defense firms will establish formal and informal mentoring programs to assist startups with market access, business strategy, and technological expertise.
   • Accelerator Program for Defense Startups: Hacking for Allies (H4x), the Information Technology Industry Council (iTIC), IIT Hyderabad, and other stakeholders intend to provide startups with problem-solving opportunities, mentoring, exposure in defense commercialization, business development, technology advancement, and funding opportunities.
   • Academic & Start-up Programming Partnerships with Universities and Accelerators: Collaborations between Pennsylvania State University, Indian Institutes of Technology (IIT) Madras, IIT Kanpur, and other Indian and American university and accelerator partners will facilitate knowledge exchange in defense innovation, fielding, and commercialization.
   • Collaboration of Start-ups with Defense Majors’ Supply Chains: Indian and U.S. defense firms will explore options for supply chain collaborations with startups.
3. Public-Private Partnerships:
   • Joint (Prize) Challenges: The DoD and MoD, in collaboration with external stakeholders, will explore joint challenges for U.S. and Indian startups, leveraging common dual-use cases.
   • Innovation, Testing, and Certification Labs & Centers for Defense Start-ups: The DoD and MoD aim to provide start-ups with access to each other’s R&D centers and innovation labs, supporting collaboration. Opportunities for enhanced testing and certification capacity in India and the United States will also be identified.
   • Indo-U.S. Joint Innovation Fund: Private investors, engaged by IndiaSpora, IndUS Tech Council, Bharat Forge/Coimbatore, and T-Hub/Hyderabad, will support investments in defense and dual-use start-ups. The DoD and MoD will explore options for a fund committed to supporting deep-tech defense startups through public-private partnerships.
   • Easing regulations for cross-border development & trade: The SAG will recommend adjustments to respective regulatory schemes to streamline start-up innovation and increase procurement opportunities. These recommendations may be referred to existing trade dialogues, including the India-U.S. Strategic Trade Dialogue.
   • Standardization of Indo-U.S. certifications for technology startups: The MoD and DoD will explore the standardization of certification for technologies developed by the defense innovation ecosystems of both countries. Focus areas include Quality Assurance (QA) parameters, certification standards, and program success memoranda.

The launch of INDUS-X demonstrates the commitment of both India and the United States to fostering defense innovation and collaboration. By leveraging the strengths of their respective defense ecosystems, the two countries aim to drive technological advancements, facilitate knowledge sharing, and promote economic growth in the defense sector.