01
Context: India's Defence Manufacturing Boom
FY 2025-26 has been the best year for India's defence manufacturing, with production at ₹1.78 lakh crore and exports at ₹38,424 crore (62.66% higher than ₹23,622 crore in the previous year). The Defence Acquisition Council approved a record ₹6.73 lakh crore in procurement, and the overall defence budget rose from ₹2.53 lakh crore in FY 2013-14 to ₹7.86 lakh crore for FY 2025-26. This growth is driven by the government's push for indigenisation under 'Atmanirbhar Bharat' and has positioned India as a defence exporter to over 80 countries.
02
Core Issue: Structural Talent Mismatch
The Quess Corp report highlights that the defence-tech market, valued at $7.6 billion in 2025, is projected to triple to $19 billion by 2030. However, specialised roles in radar, RF engineering, avionics, propulsion, optical engineering, quantum communications, and systems integration currently account for less than 5% of the existing defence workforce. Without targeted skilling, 40-45% of these roles could remain unfilled by 2030, bottlenecking critical projects in aircraft development, unmanned systems, naval platforms, and secure communications.
03
The 'Lab-to-Battlefield' Gap
Founders like Pooja Yadav (Astraniti) and Kiran Vagga (TISA Aerospace) argue that a prototype that works in a lab is fundamentally different from a system that survives a battlefield. The real engineering challenge involves ruggedisation, integration, testing, documentation, and qualification—skills largely absent in conventional engineering curricula. This gap forces companies to allocate significant engineering hours to unglamorous but essential deployment work, slowing down the innovation-to-product cycle.
04
Role of Veterans and Tier 2 College Graduates
Cdr. Arun Ravindranathan (Retd) highlights the difficulty retired officers face in entering the defence startup ecosystem, including rejections from the iDEX scheme. He argues that veterans bring crucial operational knowledge about how equipment is used under pressure—knowledge that complements the technical skills of young engineers. He plans to recruit from Tier 2 colleges, emphasising internships to gauge capability. This points to a need for inclusive talent pipelines beyond elite institutions.
05
Institutional Responses: BITS Pilani's CRENS and New Programmes
Professor V. Ramgopal Rao described BITS Pilani's Centre for Research Excellence in National Security (CRENS) and its upcoming B.E. in AI and Autonomous Systems as models for bridging the talent gap. The institute's Practice School system (up to 7.5 months of internships) and student startups like Apollyon Dynamics (UAVs for Indian Army) and AstroDeus (AI-powered loitering munition) demonstrate the potential of combining strong fundamentals with hands-on, defence-specific projects.
06
iDEX Scheme: Successes and Criticisms
Launched in April 2018, iDEX has awarded ~650 contracts worth ~$344 million (₹3,000 crore+) and engaged over 350 startups and 100 MSMEs. However, retired officer Ravindranathan criticises that larger companies now dominate the contracts, undermining the scheme's original goal of supporting young startups and MSMEs. He has called for an independent probe into iDEX's effectiveness for its intended beneficiaries.
07
Future Outlook: Skilling as a National Priority
The defence and aerospace workforce is expected to grow from 1.8 lakh to 2.85 lakh by 2030. The article underscores that producing more engineering graduates is not the solution; what is needed are engineers who have 'broken something, fixed it, and understood why it failed.' This requires systemic changes in engineering education, including mandatory internships, interdisciplinary curricula, and direct exposure to end-users (soldiers, pilots, sailors).