How has India’s vibrant startup ecosystem become a foundation for nation building in defence?
Synopsis
Key Takeaways
- 'Startup India' has evolved into a crucial instrument for national development.
- Defence startups are key to India’s self-reliance in technology and security.
- Private sector involvement in defence production has increased significantly.
- India is making strides in both space and AI through innovative startups.
- The government is actively supporting startups across various sectors to foster innovation.
New Delhi, Jan 15 (NationPress) As India celebrates a decade of the ‘Startup India’ initiative, this movement has transcended mere economics; it has evolved into a powerful tool for nation-building, fundamentally changing how the country fosters capability, opportunity, and confidence for the future. ‘Startup India’, initiated on January 16, 2016, by Prime Minister Narendra Modi, was designed as a transformative national initiative aimed at cultivating innovation, encouraging entrepreneurship, and facilitating investment-led growth, with a vision of transforming India into a hub of job creators instead of job seekers.
Today, India's shift from being a global “back-office” to an “innovation architect” reflects a broader agenda of national sovereignty in defence and technology—focused on reconstructing institutions, decentralizing opportunities, and weaving innovation into daily life.
Under the leadership of PM Modi, initial reforms aimed at easing business operations have progressed into a robust framework for Viksit Bharat 2047.
Defence startups, often viewed through the lens of security, contribute significantly to institutional resilience and industrial depth. The iDEX initiative has integrated startups into the procurement and problem-solving processes of the Armed Forces, marking a historic shift in India's post-independence narrative. This evolution has transformed the defence sector from a closed, import-reliant industry into a widespread national manufacturing ecosystem.
The results are evident: defence production has skyrocketed, exports have reached unprecedented levels, and private-sector innovation is finally converting into tangible orders. More than 788 industrial licenses have been granted to 462 companies, significantly boosting private sector involvement.
Currently, the private sector accounts for nearly 23% of India’s overall defence production, with over 16,000 MSMEs integrated into the defence framework. The concept of Atmanirbharta has transitioned from a mere slogan to a nationwide movement.
Prior to 2014, the landscape of defence startups in India was virtually empty. Now, over 1,000 defence startups are operational across the nation, and they are not marginal players; they are pioneering mission-critical technologies previously imported.
In a bid to reduce reliance on foreign GPS, India is developing an indigenous Quantum Positioning System (QPS) for the Indian Navy, aided by startups. The quantum deeptech startup QuBeats has secured the prestigious ADITI 2.0 Defence Challenge grant of $3 million to develop this technology.
Likewise, the armed forces have transitioned from foreign-component-heavy drones to entirely indigenous drone systems, which were utilized in precision strikes during Operation Sindoor, all designed and manufactured in India, particularly in hubs like Bengaluru.
The government has made a significant move in unmanned defence. The Indian Army signed a ₹168 crore contract with Bengaluru-based startup NewSpace Research & Technologies under iDEX for solar-powered surveillance drones. This is a groundbreaking induction of solar-powered unmanned aircraft, effectively overcoming the endurance constraints associated with battery and fuel-operated systems.
In addition, the expansion of the Nation’s Nervous System (space and AI) has seen space and AI startups enhance the sensory and cognitive framework of the country. In 2014, India had just one space startup, but opening the sector to private players has led to the rise of over 382 space startups. These innovators are bolstering India’s sovereign space capabilities.
Bengaluru-based Pixxel has launched the first satellites of its Firefly constellation, marking the nation’s inaugural commercial satellite constellation, delivering world-class hyperspectral imaging. Similarly, the upcoming launch of GalaxEye’s Mission Drishti will bestow the nation with “sovereign eyes” through the world’s first multi-sensor Earth-observation satellite.
In the realm of artificial intelligence, the IndiaAI Mission is set on establishing a Sovereign AI ecosystem, ensuring India does not merely consume global AI technologies. Startups like SarvamAI have been selected in 2025 to develop the nation’s first sovereign LLMs, specifically trained on Indian languages and hosted on domestic servers.
To democratize AI innovation, the government has made over 38,000 GPUs available, offering subsidized access to startups at a mere ₹65 per hour, empowering even founders from smaller towns to build high-quality AI models.
Understanding that true nation-building relies on indigenous intellect, the government launched the India Semiconductor Mission (ISM) and the DLI scheme. Startups like Netrasemi, backed by the chip design program, have secured ₹107 crore in VC funding to develop chips for smart vision, CCTV, and IoT applications.
Additionally, in 2021, the government relaxed mapping regulations, allowing local startups to collect, generate, store, publish, and update geospatial data within the country’s territorial limits. This has sparked innovation across agriculture, infrastructure, and governance. Startups like Satsure utilize satellite imagery to offer “Credit Scoring” for farmers, while others employ satellite imagery, AI, and data science to provide plot-level farm advisories to smallholders.
Moreover, India’s biotechnology sector has emerged as a crucial driver of economic growth and innovation. The regional landscape of this sector is also undergoing significant transformation. The BIRAC’s Incubation network has expanded to include 75 BioNEST Centres and 19 E-YUVA Centres, contributing to over 900,000 sq. ft. of cumulative incubation space and supporting over 3,000 entrepreneurs and startups, resulting in more than 1,300 IPs filed and over 800 products reaching various stages of market deployment.
The shift from an Inspector Raj to an Innovation Raj has not only reduced bureaucratic hurdles but has also restored agency to Indian entrepreneurs. Through the Startup India initiative, startups have been recognized as essential contributors to nation-building, not merely subjects of regulation. The outcome is an ecosystem that prioritizes not just valuation but genuine value creation for society.
Meanwhile, according to a statement from the Prime Minister's Office (PMO), PM Modi is set to engage with representatives from India’s dynamic startup ecosystem this Friday. Selected startup representatives will share insights from their entrepreneurial journeys, and the Prime Minister will address the gathering on this significant occasion.