2 weeks ago
India's Rs 1 trillion plan for defence prototypes towards production
India has made a very big pot of money — about one lakh crore rupees — to help clever companies build machines that the army might use someday.
One of those companies is called ideaForge, and it is building a drone named YETI.
YETI is a special flying machine that can take off and land like a helicopter but fly like an aeroplane.
It is meant to carry heavy supplies, such as food and medicine, to soldiers in hard-to-reach places like high mountains.
The drone is designed to carry between 50 and 200 kilograms and fly up to 200 kilometres, but it is still being tested.
The government promised to help pay for part of the work, but the army has not yet agreed to buy YETI.
So far, 22 projects have been chosen to get money from the fund, and the first company to actually receive cash got 50 crore rupees.
The tricky part is that even after a machine is built, the army must test it carefully, and testing can take years.
A government report showed that many defence projects finish much later than planned.
So the big question is whether this money will turn into real drones that soldiers use, or just make the waiting a little cheaper.
India's RDI Scheme, with a Rs 1 lakh crore (Rs 1 trillion) outlay spread over six years, was approved by the Cabinet on July 1, 2025 and launched on November 3, 2025.
ideaForge's YETI, an autonomous fixed-wing vertical take-off and landing platform for military and civilian logistics, is at Technology Readiness Level 4 with a target of TRL 9 within three years.
The government has issued an in-principle debt financing letter of up to Rs 151 crore for YETI, but no production order had been publicly disclosed by ideaForge or the Ministry of Defence as of August 2026.
By July 2026, the Technology Development Board reported 22 selected projects with combined project cost of about Rs 4,744 crore and RDI support of about Rs 2,192 crore.
The first RDI disbursement of Rs 50 crore went to Eyestem Research on May 16, 2026, and a CAG audit found 119 of 178 DRDO mission-mode projects had missed their original schedules.
- Who
- ideaForge (developer of the YETI drone), the Ministry of Defence, the Technology Development Board, and Indian deep-tech companies including EndureAir, Agnikul Cosmos and Tejas Networks.
- What
- India's Rs 1 lakh crore RDI Scheme is financing the scale-up of defence prototypes such as YETI toward production, at a point where no purchase order has yet been secured.
- Where
- India.
- When
- Approved on July 1, 2025 and launched on November 3, 2025; 22 projects had been selected by July 2026, with no YETI production order disclosed as of August 2026.
- Why
- To help deep-tech companies finance the costly gap between an early prototype and a competitive product, because banks and venture investors are reluctant to fund long, uncertain defence development cycles.
Key facts
- Scheme
- Research, Development and Innovation (RDI) Scheme
- Fund size
- Rs 1 lakh crore (Rs 1 trillion) over six years
- Approval and launch
- Approved by Cabinet on July 1, 2025; launched November 3, 2025
- YETI platform
- Autonomous fixed-wing vertical take-off and landing drone for military and civilian logistics, by ideaForge
- YETI capability targets
- 50–200 kg payload; up to 200 km mission range (development-stage targets)
- YETI readiness
- Technology Readiness Level 4; target of TRL 9 within three years
- ideaForge financing
- In-principle debt financing of up to Rs 151 crore for YETI
- Scheme progress
- 22 projects selected (July 2026); about Rs 2,192 crore RDI support against about Rs 4,744 crore project cost; first Rs 50 crore disbursement to Eyestem Research on May 16, 2026





