Defence startups face trial permit hurdles: Garuda Aerospace highlights innovation roadblocks

Recent government reforms have eased procurement rules for scientific research, but defence startups like Garuda Aerospace still grapple with restrictive trial permits and complex clearances. This report explores how these challenges impact innovation despite promising policy shifts.

Sources:
BiospectrumindiaInsightsonindia+2
Updated 3h ago
Section 1 background
The Headline

Defence startups face trial and clearance hurdles

Key Facts
  • Defence startups face challenges including endless paperwork, uncertain clearances, and the restrictive No Cost No Commitment (NCNC) trial model which requires multiple product demonstrations without guaranteed orders.1
  • Garuda Aerospace struggles with trial permits in restricted airspace due to dual-use regulations, complicating operations despite some reforms.1
  • Startup-specific acquisition cells, single-window clearances, and structured testbed partnerships are seen as encouraging signs for defence startups by Garuda Aerospace's CEO.1
They are building drones, surveillance payloads and secure dual-use systems with cutting-edge tech. Their mission is national security. But for India’s defence startups, the battlefield begins not with enemy fire but with endless paperwork, uncertain clearances and risk-bound procurement processes.
Businessworld
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For companies like Garuda Aerospace, which builds UAVs with applications in both civilian and defence use cases, dual-use regulation can be a double-edged sword. 'We often face challenges in securing trial permits in restricted airspace,' says Agnishwar Jayaprakash, Founder and CEO of Garuda Aerospace.
Businessworld
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One of the most consequential decisions announced is the delegation of procurement powers to institutional heads. Directors of scientific organisations and Vice Chancellors of universities will now be empowered to carry out non-GeM (Government e-Marketplace) purchases for specialised research equipment and materials.
Biospectrumindia
Biospectrumindia
The Union Minister of Science & Technology announced sweeping policy reforms to boost the Ease of Innovation, Ease of Doing Research, and Ease of Science in India.
Insightsonindia
Insightsonindia
Section 2 background
Background Context

Government reforms boost research procurement flexibility

Key Facts
  • Government doubled the ceiling for direct purchases from ₹1 lakh to ₹2 lakh and increased departmental purchase limits to ₹25 lakh for specialised research equipment.2Biospectrumindia
  • Union Minister Jitendra Singh announced reforms to enhance ease of innovation and research by empowering scientific leaders and Vice Chancellors with greater procurement flexibility.3BiospectrumindiaInsightsonindia
  • The cap for limited tenders was raised to ₹1 crore and global tenders up to ₹200 crore can now be approved at the institutional level.1
  • Reforms aim to replicate space and nuclear sector liberalisation success by emphasizing trust in science leadership and accountability.Insightsonindia
  • Procurement powers delegated to institutional heads such as directors of scientific organisations and Vice Chancellors to carry out non-GeM purchases for specialised research equipment.Biospectrumindia
Key Stats at a Glance
Direct purchase ceiling for institutions
₹ 2 lakh
1
Departmental committee purchase limit
₹ 25 lakh
1
Cap for limited tenders
₹ 1 crore
1
Approval limit for global tenders
₹ 200 crore
1
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