Defence PSUs are firing blanks

Defence Public Sector Undertakings (PSUs) have extended a very tentative hand to startups. But their handshake seems cold at best as some of their legacy issues do not make them an ideal partner, at least for now

PSUs believe startups will find it tough to big monies working with them

But no real innovations have come from the R&D programmes of the defence PSUs

Startups that make end products used by the armed forces have viable business models

PSUs prefer sourcing from foreign manufacturers. They believe Indian startups' products are not of international quality

A wintry January morning in Bengaluru saw the coming together of two very unlikely sets of people. Bharat Electronics Ltd (BEL), Hindustan Aeronautics Ltd (HAL) and Bharat Earth Movers Ltd, all suppliers of various defence equipment to the armed forces, were hosting an event at the BEL Officers Club. It was a mission to woo startups—an officious sounding seminar called ‘Role of startups in defence’ where about 50 startups showed up. Senior officials in ill-fitting suits from these three companies took turns to talk about their companies, their R&D prowess and how their guns protect the borders.

AUTHOR

Arundhati Ramanathan

Arundhati is Bengaluru-based. She is interested in how people use money in the digital age and how new economies will take shape based on that interaction. She has spent over 10 years reporting and writing on various subjects. Previous stints were at Mint, Outlook Business and Reuters.

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