Inside India’s Next Big Deeptech Bet This year’s Republic Day parade is set to feel different. Beyond the imported jets, the spotlight will firmly be on homegrown drones and AI-powered weapons. So, has India’s defence tech moment arrived? The Mainstream Mandate: For decades, India’s defence sector was defined by massive defence import bills. However, Operation Sindoor served as a brutal wake-up call. By 2025-end, local procurement soared, and the Centre systematically lowered entry barriers by absorbing early technical and financial risk that once deterred private capital. Sovereign Fountainhead: The Centre is effectively de-risking the sector by becoming its primary benefactor. Programmes like iDEX and the upcoming INR 1 Lakh Cr fund are fuelling product development and prototyping with clearer procurement routes. Meanwhile, the state is providing subsidised infrastructure to reduce upfront investment before demand validation. These mechanisms are creating predictable revenue pathways, reducing R&D timelines and lowering operating costs. The Capital Surge: Investor appetite for the defence tech sector is also reaching a feverish pitch. Of the $78 Mn raised by defence tech startups over the last decade, a staggering $68 Mn was secured in 2025 alone. While drones remain the mainstay, capital is also flowing into core intellectual properties… Read MoreInc42 Media
