The Indian defence landscape is undergoing a dramatic transformation, with a new generation of startups leading the charge in developing cutting-edge technologies for modern warfare.
No longer reliant solely on traditional weaponry, India is embracing innovations like AI-powered drones, robotic swarms, and advanced surveillance systems, positioning itself at the forefront of this technological revolution.
This shift is exemplified by companies like NewSpace Research and Technologies (NRT), founded by former fighter pilot Sameer Joshi and IIT-IIM alumnus Julius Amrit.
NRT, now India's most-funded defence and aerospace startup with Rs 72 million in funding, specializes in long-endurance drones and robotic swarms capable of complex tasks, including search-and-rescue and targeted strikes.
Their patented swarming technology, a world-first, has already been deployed with the Indian armed forces, showcasing its effectiveness even in challenging high-altitude environments like the Himalayas.
NRT is not alone. Over the past five years, more than a thousand defence startups have sprung up across India, driven by the evolving nature of conflict as witnessed in Ukraine and West Asia. These conflicts have highlighted the growing importance of technologies like AI, unmanned vehicles, and facial recognition systems in modern warfare.
"Modern wars have taught us that the most successful weapon systems share key traits: small, precise, effective, autonomous and reliable— what we call SPEAR," says Abhishek Jain, chief business officer of Zeus Numerix, a Pune-based startup developing precision guidance kits for mortars and drone-dropped bombs. Their 81mm guided mortar, comparable to Israel's Iron Sting, is already in high demand domestically and internationally.
Beyond offensive capabilities, startups are also bolstering India's defensive strategies. Big Bang Boom Solutions, based in Chennai, has developed an advanced anti-drone system with a 10 km range, crucial in countering the growing threat of drone warfare.
They are also working on "See-Through Armour," a project in collaboration with the Indian Army that uses AI and military-grade cameras to provide tank commanders with a 360-degree view of their surroundings, enhancing situational awareness and threat detection.
This surge in defence startups is fueled by government initiatives like Innovations for Defence Excellence (iDEX), launched in 2018 to provide financial support and guidance. According to the Ministry of Defence, 500 startups have already secured contracts under iDEX and the Technology Development Fund.
However, challenges remain. Securing consistent funding remains a significant hurdle, with the total equity funding for Indian defence tech since 2020 standing at a modest $184 million, according to Tracxn. This pales in comparison to other sectors, highlighting the need for increased investment in this critical area.
"Defence is one of the hottest sectors right now, but there aren’t enough people funding it because they don’t understand the sector," says Navneet Kaushik, a retired Indian Navy commander and founder of Jamwat Ventures Angel Fund.
Despite the challenges, these startups are playing a vital role in shaping India's defence capabilities, ensuring the nation remains prepared for the complexities of modern warfare. As Joshi of NRT emphasizes, "The nimbleness of startups…[has] the potential to build long-term strategic capabilities for India and its allies."
