India's defence technology landscape is undergoing a significant transformation, with home-grown start-ups emerging as key players in reducing the country's historical dependence on imported military hardware. This shift comes amid growing government support through initiatives like the Innovations for Defence Excellence (iDEX) program, changing investor attitudes, and evolving warfare needs. The rising start-up ecosystem is not only addressing India's security requirements but also attracting substantial investor interest, marking a pivotal moment for the nation's defence capabilities and technological self-reliance.

India has long maintained its position among the world's largest importers of military equipment. Between 2019 and 2023, the country accounted for approximately 9.8% of global arms imports, ranking it among the top importers globally. Only recently has Ukraine surpassed India with an 8.8% market share, relegating India to second place with 8.3% of global arms imports during 2020-2024.

This heavy reliance on foreign military technology has been recognized as a strategic vulnerability. With 50-55% of India's defence needs historically met through imports from countries like Russia, France, and Israel, the push for self-reliance has become increasingly urgent. The country's substantial defence budget, which stands at $78.7 billion for 2025-26 (a 9.5% increase from the previous year), provides significant financial backing for this transition toward indigenous development.

The goal of achieving "Aatmanirbhar Bharat" (self-reliant India) in defence has been steadily gaining momentum, with the government allocating substantial resources to local procurement. For instance, 63% of the defence budget for FY22, amounting to $9.7 billion, was earmarked for locally produced weapons and systems. This policy shift is creating fertile ground for domestic innovation and entrepreneurship in the defence sector.

The emergence of defence start-ups in India has been significantly accelerated by strategic government initiatives aimed at fostering indigenous innovation. Chief among these is the Innovations for Defence Excellence (iDEX) program launched in 2018 under the aegis of the Department of Defence Production.

The iDEX Framework

The iDEX initiative serves as a crucial bridge between the military's operational needs and innovative technological solutions. Under this program, the Defence Innovation Organization (DIO)—formed as a 'not for profit' company by two Defence Public Sector Undertakings, Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL)—provides funding and support to start-ups developing defence technologies.

The program operates through various mechanisms:

Defence India Start-Up Challenges (DISC): These challenges present specific problem statements from the Armed Forces, inviting start-ups to develop solutions.

SPARK Grants: Successful applicants receive funding of up to ₹1.5 crore (approximately $180,000) for prototype development, with grants available up to ₹10 crore (approximately $1.2 million) under the iDEX Prime initiative.

Procurement Pathway: The Defence Acquisition Procedure 2020 specifically mentions iDEX as a formal pathway for military procurement, creating a direct route to market for successful innovations.

The objectives of iDEX are multifaceted, aiming to facilitate rapid development of new, indigenised technologies for the Indian defence sector; create engagement with innovative start-ups; and foster a culture of technology co-creation and co-innovation. This policy framework has been instrumental in transforming the landscape for defence innovation in India.

Additional Policy Support

Beyond iDEX, several other policy changes have contributed to the growth of defence start-ups:

Liberalized FDI Regime: The relaxation of foreign direct investment rules has enabled partnerships between local ventures and international players.

Technology Development Fund (TDF): This DRDO-managed fund provides another avenue for start-ups to secure funding for defence innovations.

Preference for Local Procurement: Policy mandates favouring domestic manufacturers have created reliable market opportunities for Indian start-ups.

These initiatives collectively form a robust ecosystem supporting the emergence of defence technology start-ups across the country.

The Emerging Defence Tech Start-Up Ecosystem

The policy push toward self-reliance has catalysed remarkable growth in India's defence start-up ecosystem. Currently, over 1,000 defence start-ups are actively driving technological innovation across various domains of military technology. This proliferation represents a fundamental shift in India's approach to defence capabilities, moving from import-dependence to indigenous innovation.

Changing Investor Sentiment

The defence sector, traditionally dominated by state-owned enterprises and large corporations, is witnessing increased investor interest in start-up ventures. As Ankit Mehta, CEO of ideaForge, observes, "The pandemic, iDEX, the government's intention of buying locally – all of it has led to higher interest in this sector. We are now getting sizeable investments from non-government entities as well."

This trend is evidenced by recent investment activities in the sector:

Former defence secretary Ajay Kumar's ₹250 crore (approximately $30 million) venture capital fund, focused on early-stage start-ups in defence, aerospace, and deep-tech sectors, marked its first close within days of launch in 2024.

Defence tech start-up Big Bang Boom Solutions raised $30 million in September 2023, providing significant momentum to the sector.

Despite the growing interest, Mehta acknowledges the inherent challenges of operating in this space: "Customer cycles tend to be unpredictable, as is predictable for a business that is reliant on the government. Also, there is a disconnect between the procurement process and the financial side that doesn't necessarily match the need or intent on the ground." However, he notes that the situation began improving around 2017, making the environment more conducive for start-ups.

Impact of Changing Warfare Dynamics

The nature of modern warfare is evolving rapidly, influenced by geopolitical tensions, cross-border conflicts, and lessons from contemporary wars like the Russia-Ukraine conflict. According to Prateek Raj of Lightspeed India Partners, "Not only are the theatres of conflict becoming longer than usual, but also the world is moving from large platforms like big tanks and aircraft towards smaller, more autonomous systems, such as drones."

This paradigm shift is creating opportunities for agile start-ups that can develop cost-effective, autonomous systems capable of overwhelming conventional military hardware. The integration of artificial intelligence and machine learning into these systems further enhances their capabilities and strategic value.

Leading Indian Defence Tech Start-Ups

India's defence technology landscape now features several innovative start-ups addressing diverse military needs. Based on the available information, here are some of the notable players:

1. ideaForge

Founded in 2007 and now publicly listed, ideaForge has established itself as a leading manufacturer of unmanned aircraft systems. The company supplies the Indian army with UAVs for border surveillance and high-altitude transport. Their systems are designed to operate in extreme conditions ranging from high-altitude mountain regions to desert environments, making them particularly suited for India's diverse geographical needs.

As Mehta points out, "Building for India implies building for some of the toughest conditions in the world, with platforms that need to operate from -30 degrees at a 6,000-metre altitude and the deserts of Rajasthan to the marine environment along our extensive coastline."

2. Big Bang Boom Solutions

Founded in 2018 by R. Shivaraman and Praveen Dwarkanath, Big Bang Boom Solutions is among the youngest defence start-ups in India. Their flagship product, the 360 Advanced Battle Interface, focuses on enhancing the visual capabilities of T-Series tanks used by the Indian armed forces. The company has already attracted significant investment, raising $30 million in 2023.

3. Sagar Defence Engineering

Established in 2016 by Nikunj Parashar and Mridul Babbar, Sagar Defence Engineering specializes in maritime security solutions. Their innovative product, 'Genesis – Boat in a Box,' is an AI-enabled device that can be programmed to perform hazardous tasks such as cleaning oil spills, surveying marine borders, and providing flood relief. The company is developing unmanned surface and underwater vehicles for naval defence applications.

4. Optimized Electrotech

Founded in 2017 by a team including Anil Yekkala and Dharin Shah, Optimized Electrotech focuses on electro-optical technologies. The company develops security and surveillance systems for India's defence forces, contributing to enhanced situational awareness capabilities.

5. EyeROV


This start-up specializes in underwater drones for surveillance operations. Their technology enables underwater inspection and monitoring, addressing a critical aspect of maritime security.

6. Dimension NXG (AjnaLens)

While specific details are limited in the search results, Dimension NXG (operating as AjnaLens) is recognized as a significant player in the defence technology space, likely working on advanced visualization systems.

7. Vinveli

Although detailed information is not available in the search results, Vinveli is mentioned as a notable defence technology start-up contributing to India's self-reliance efforts.

8. Cron Systems (Cron AI)

Identified as a significant player in the defence tech ecosystem, Cron Systems (now Cron AI) appears to be working on critical defence technologies, though specific details are limited in the available information.

9. Axio Biosolutions

While specific information about Axio Biosolutions' defence applications is limited in the search results, the company is recognized as an important player in the defence technology space, potentially focusing on medical solutions for combat situations.

10. Tonbo Imaging

Ranked as a top defence start-up in India, Tonbo Imaging likely specializes in advanced imaging technologies for military applications, though detailed information is not provided in the search results.

11. Torus Robotics

This company is developing unmanned ground systems to assist the army in transporting heavy loads, addressing logistical challenges in difficult terrain.

The Drone Revolution In Defence

One of the most promising areas of innovation within India's defence start-up ecosystem is unmanned aerial systems or drones. The strategic importance of these systems has been underscored by recent conflicts worldwide.

As Mehta observes, "The pandemic was also a game changer. It made people turn towards leveraging robotics since it would take you away from humans as much as possible. There were all kinds of robotics being driven aggressively globally post the start of the pandemic and drones were no exception. And we saw combat drones being leveraged effectively with the Galwan attack, the Armenia-Azerbaijan conflict and the Russia-Ukraine war as well."

Several Indian start-ups are making significant advances in this domain:

ideaForge: Leading in military-grade UAVs for surveillance and reconnaissance.

Flying Wedge and NewSpace: Younger companies joining the drone manufacturing space.

GalaxEye: An Indian space-tech start-up developing multi-sensor satellite imaging technology to enhance drone capabilities in low-visibility scenarios, backed by ideaForge as an investor.

Beyond aerial drones, innovation is extending to other unmanned systems:

Torus Robotics: Focusing on unmanned ground vehicles for heavy transport.

EyeROV: Developing underwater drones for subsurface surveillance.

Sagar Defence Engineering: Creating unmanned surface and underwater vehicles for naval applications.

Conclusion

India's defence technology start-up ecosystem represents a critical component of the country's journey toward self-reliance in military capabilities. Propelled by supportive government policies, changing warfare dynamics, and growing investor interest, these companies are developing innovative solutions across diverse domains of military technology.

As warfare continues to evolve toward more autonomous and intelligent systems, Indian start-ups are well-positioned to meet these emerging needs while contributing to the nation's strategic autonomy. The continued growth of this ecosystem will depend on sustained policy support, access to capital, and the ability to navigate the unique challenges of the defence procurement landscape. Nevertheless, the foundation has been laid for a vibrant and innovative defence technology sector that promises to enhance India's security while spurring broader technological advancement.

IDN