Indian Defence Start-Ups: Shaping the Future of Military Technology

Ankit Mehta, co-founder of ideaForge, vividly recalls the 2008 Mumbai attacks, where naval helicopters struggled to gather information. He envisioned how locally-made drones could have shifted the tide. For years, however, India's drone technology was overlooked and labeled as unfit for battle.

Speaking candidly during a recent interview, Mehta remarked, "Our innovations felt more like science projects than serious military technology. We regularly demonstrated our autonomous systems under extreme conditions, but the recognition was lacking at every turn."

Operation Sindoor: A Turning Point

On May 7, 2025, everything changed. The Indian military executed Operation Sindoor in response to a terrorist attack in Kashmir, which resulted in the tragic loss of 26 lives. This military operation was not just a typical engagement; it was a high-tech conflict showcasing the crucial role of indigenous technology.

This operation fundamentally altered perspectives about defence-tech start-ups across the nation. Sai Pattabiram, founder of Zuppa, noted, "Investors were previously reluctant to support us, but after the operation, our order visibility skyrocketed by tenfold."

The success of Sindoor highlighted the urgent demand for various technologies, including drones, AI systems, and electronic warfare capabilities. Mehta emphasized, "We need agile systems capable of rapid evolution, and start-ups are perfectly positioned to provide that. They innovate swiftly out in the field."

From High-Risk to Essential

The aftermath of the operation ushered in a wave of investment enthusiasm within India's defence-tech sector. In 2025, funding for these start-ups surged to $282.5 million, compared to just $135.2 million in the previous year, as investors recognized the critical need for national security solutions.

However, opportunities come alongside challenges. Many founders have found growth stymied by lengthy and complex sales processes, combined with significant capital requirements. But the ripple effects from Operation Sindoor called for immediate action.

Manu Iyer of Bluehill VC stated, "The operation laid bare the necessity for homegrown defence technologies. These were no longer viewed as risky investments but as obligatory solutions for our national security. We were compelled to rethink our approach to military technology."

Addressing Vulnerabilities in Supply Chains

Recent incidents worldwide have raised alarms regarding vulnerabilities in military supply chains. For instance, a 2024 attack in Beirut revealed how everyday tools, like pagers, could be manipulated into deadly devices. In response, authorities in India discovered that commercially available surveillance cameras imported from China were covertly gathering data on sensitive military locations.

Experts warn that reliance on foreign components places India's security on shaky ground. While it’s possible to design and assemble drones domestically, importing parts like flight controllers undermines sovereignty. Ravi Kumar Gupta, a former director at the Defence Research and Development Organisation (DRDO), noted, "We face a dilemma of acquiring systems that may become obsolete before deployment due to dependency on foreign technologies."

Innovation Through Collaboration

The Indian government's push for self-reliance in defence technology stems from the realization that innovation should not solely reside within state-run entities. The iDEX initiative, launched in 2018, aims to support start-ups in the defence and aerospace sectors through grants and mentorship.

A notable example is Raphe mPhibr, whose engineers collaborated with DRDO to create various operational systems. Their success during Operation Sindoor demonstrated that start-ups can deliver effective solutions when they matter most.

The Defence Acquisition Procedure (DAP) has undergone significant changes to promote domestic procurement. By allowing government departments to become anchor customers, the policy ensures a consistent demand for locally developed technologies.

A Future Beyond Imports

India's defence R&D budget has significantly increased over the years, yet translating lab breakthroughs into field-ready technologies remains sluggish. Analysts emphasize the need to decentralize the development process, allowing private entities to join the innovation journey.

Private participation, similar to the successful models used by the Indian Space Research Organisation, could enhance efficiency. The changing dynamics in warfare necessitate a shift from government monopoly to a collaborative ecosystem involving both public and private sectors.

Industry experts point out that while substantial progress is being made, challenges remain for defence start-ups. These enterprises must navigate lengthy procurement timelines that could impede growth. Mehta of ideaForge expressed concern about enduring procurement pauses, which can jeopardize their operational viability.

In conclusion, the evolution of India's defence landscape hinges on nurturing a robust ecosystem where government laboratories, innovative start-ups, and established corporations collaborate effectively. With geopolitical pressures increasing, now is the time for India to establish a self-sufficient and formidable defence infrastructure.

"The art of war teaches us to rely not on the likelihood of the enemy not coming, but on our own readiness to receive him." – Sun Tzu