New Delhi: India’s defence start-ups are playing a bigger role than ever before in building advanced military technologies. From drones and missiles to satellites and cyber security systems, young Indian companies are helping transform the country’s defence manufacturing sector.
Speaking at the India Today Conclave South 2026, former DRDO Chairman and National Security Advisory Board member Dr G. Satheesh Reddy highlighted how start-ups are now becoming key drivers of innovation, production, and exports in India’s defence ecosystem.
Indian Defence Start-Ups Growth: Defence Sector Is Seeing A Major Transformation
For decades, India’s defence manufacturing was largely controlled by government organizations and large industrial groups.
Today, the situation is changing rapidly. Private companies and start-ups are increasingly designing, developing, and manufacturing complete defence systems rather than simply supplying components.
According to Dr Satheesh Reddy, nearly 90% of India’s cyber security sector is now driven by start-ups. These companies are bringing fresh ideas and faster innovation into areas that were once dominated by traditional defence organizations.
Details of Indian Defence Start-Ups Growth
Indian defence start-ups are now working on a wide range of technologies.
Advanced Technologies Under Development
These include:
- Military drones
- Guided missiles
- Satellite systems
- Launch vehicles
- Synthetic aperture radar
- Hyperspectral imaging systems
- Cyber security platforms
- Space-based technologies
Such developments show that India’s start-up ecosystem is moving into highly sophisticated defence and aerospace sectors.
Private Companies Are Manufacturing Complete Defence Platforms
The role of private industry has expanded significantly. According to Dr Reddy, private companies are now manufacturing complete defence platforms including:
- Missiles
- Armoured vehicles
- Bombs
- Artillery systems
He also revealed that around 12 to 13 missile programs are currently being executed by private-sector manufacturers. This reflects a major shift in India’s defence manufacturing landscape.
Government Support Is Accelerating Indian Defence Start-Ups Growth
The Indian government has launched several initiatives to support defence innovation and indigenous manufacturing.
iDEX Is Helping Defence Innovators
The Innovations for Defence Excellence (iDEX) program has become one of the most important support systems for defence start-ups. The initiative provides funding, mentorship, testing opportunities, and procurement support to innovators working on defence technologies. By March 2026, hundreds of start-ups, MSMEs, and innovators had joined the iDEX ecosystem.
Technology Development Fund Is Bridging The Gap
One of the biggest challenges for any start-up is moving from a successful prototype to large-scale production. To solve this problem, the government supports companies through programs such as:
- Technology Development Fund (TDF)
- iDEX Challenges
- Defence Innovation Organisation initiatives
These schemes help promising technologies reach production and military deployment faster.
Defence Procurement Reforms Are Creating New Opportunities
India has also introduced procurement reforms that make it easier for innovative companies to secure defence contracts. Start-ups that successfully complete government-sponsored technology challenges can now gain access to procurement programs and contracts worth hundreds of crores of rupees. This reduces entry barriers and allows smaller companies to compete alongside established defence manufacturers.
Indigenous Content In Defence Products Is Rising
India’s focus on self-reliance is producing visible results. Dr Reddy noted that indigenous content in defence products has increased from around 30–35% fifteen years ago to nearly 65–70% today. This means a larger share of technologies, components, and systems are now being designed and manufactured within India.
Indian Defence Start-Ups Growth: Defence Exports Are Reaching Record Levels
India’s growing manufacturing capability is also boosting exports. Defence exports increased from ₹23,622 crore to more than ₹38,000 crore in FY 2025-26, reflecting strong international demand for Indian-made defence products. Indian defence equipment is now exported to more than 80 countries. Products attracting global interest include:
- Missiles
- Artillery systems
- Radar systems
- Electronic warfare equipment
- Armoured platforms
- Defence electronics
This growing export market is helping Indian companies expand their global presence.
Challenges Still Remain
Despite the rapid progress, challenges remain. Many start-ups still face difficulties in transitioning from prototype development to mass production. Access to manufacturing infrastructure, testing facilities, and long-term procurement contracts remains critical for sustainable growth. Experts believe that overcoming these challenges will determine whether India’s current defence innovation boom becomes a long-term industrial advantage.
Read also: Beyond BrahMos: How Drones And Smart Weapons Are Driving India’s Next Defence Export Revolution
FAQs
iDEX (Innovations for Defence Excellence) is a Government of India initiative that supports defence start-ups through funding, mentorship, testing opportunities, and procurement assistance.
Dr G Satheesh Reddy said that defence and aerospace start-ups are transforming India’s military manufacturing sector by developing advanced technologies such as drones, missiles, satellites, and cyber security systems.
India’s defence exports crossed ₹38,000 crore in FY 2025-26, reaching a record level and expanding to more than 80 countries worldwide.
