Bodhisattwa Sanghapriya
Co-Convenor, CII Odisha State Startup Panel & CEO, IG Drones
India’s Defence-Led Startup Revolution: How Policy Reforms Are Powering a Resilient National Growth Engine
India’s startup ecosystem has emerged as a formidable global contender, driven by a powerful combination of progressive policymaking and relentless innovation. What began as a support framework for entrepreneurs has evolved into a results-oriented growth engine one that converts ideas into scalable businesses and deployable technologies. Initiatives such as Atmanirbhar Bharat and Make in India have dismantled legacy bottlenecks, allowing startups to scale rapidly across sectors ranging from fintech and healthtech to one of the most strategic domains of all defence technology.
The defence sector, in particular, stands out as a defining example of how targeted reforms can unlock innovation at scale. Since 2020, India’s policy framework has opened access to more than $2 billion in defence opportunities for startups. Reforms mandating 75 percent indigenous content in procurement, the Defence Acquisition Procedure (DAP) 2020 that streamlined complex approval cycles, and the iDEX innovation platform which has sanctioned over 200 projects worth more than ₹1,000 crore have fundamentally altered the landscape. Startups that once struggled to move beyond laboratory prototypes are now supplying solutions directly to the Indian Army, Navy, and Air Force.
This shift has enabled Indian defence startups to build and deploy cutting-edge technologies with real-world impact. Indigenous UAVs now achieve over 90 percent mission success in border surveillance operations. Advanced surveillance and command systems process massive volumes of operational data daily to detect and assess threats in real time. Counter-drone technologies developed by startups have been validated and inducted by DRDO, reinforcing India’s defence preparedness with homegrown solutions.
The economic and strategic outcomes are equally significant. Defence exports have grown by nearly 200 percent, touching ₹21,000 crore in FY25, while import dependence has dropped from around 70 percent to below 40 percent. India is no longer just a defence buyer it is rapidly positioning itself as a global defence-tech supplier. The sector now employs over 50,000 highly skilled engineers, commands roughly 10 percent of the $100 billion global defence technology market, and exports products to more than 50 countries. This convergence of innovation, manufacturing, and deployment strengthens national security while creating globally competitive enterprises.
Beyond defence, policy momentum continues to drive innovation across the broader startup ecosystem. Fintech companies have benefited immensely from simplified KYC norms and the massive adoption of UPI. Agritech startups are leveraging initiatives such as PM-KISAN and e-NAM to integrate seamlessly with rural markets, improving farmer incomes by 20 to 30 percent. Healthtech innovation received a strong push through faster CDSCO approvals post-pandemic, while cleantech startups are riding the wave of PLI incentives and the National Green Hydrogen Mission to support India’s ambitious 500 GW renewable energy target by 2030. Inclusive growth is also visible, with over one lakh women-led startups emerging under the Stand-Up India initiative.
Together, these developments paint the picture of a resilient and maturing ecosystem. India today hosts more than 1.2 lakh DPIIT-recognized startups, over 100 unicorns, and an ecosystem valuation approaching $500 billion. To sustain and amplify this growth, the next phase must focus on deeper public-private partnerships, expanded Funds of Funds to ensure long-term capital availability, skill corridors aligned with the National Education Policy 2020, and global sandbox environments that accelerate real-world testing and international adoption.
National Startup Day reinforces a simple but powerful truth: India’s startup journey is no longer about potential it is about execution. With defence-led reforms setting the benchmark and innovation as the engine, Indian startups are generating employment, strengthening strategic autonomy, and shaping a $5 trillion economy one deployable, mission-ready solution at a time.
The defence sector, in particular, stands out as a defining example of how targeted reforms can unlock innovation at scale. Since 2020, India’s policy framework has opened access to more than $2 billion in defence opportunities for startups. Reforms mandating 75 percent indigenous content in procurement, the Defence Acquisition Procedure (DAP) 2020 that streamlined complex approval cycles, and the iDEX innovation platform which has sanctioned over 200 projects worth more than ₹1,000 crore have fundamentally altered the landscape. Startups that once struggled to move beyond laboratory prototypes are now supplying solutions directly to the Indian Army, Navy, and Air Force.
This shift has enabled Indian defence startups to build and deploy cutting-edge technologies with real-world impact. Indigenous UAVs now achieve over 90 percent mission success in border surveillance operations. Advanced surveillance and command systems process massive volumes of operational data daily to detect and assess threats in real time. Counter-drone technologies developed by startups have been validated and inducted by DRDO, reinforcing India’s defence preparedness with homegrown solutions.
The economic and strategic outcomes are equally significant. Defence exports have grown by nearly 200 percent, touching ₹21,000 crore in FY25, while import dependence has dropped from around 70 percent to below 40 percent. India is no longer just a defence buyer it is rapidly positioning itself as a global defence-tech supplier. The sector now employs over 50,000 highly skilled engineers, commands roughly 10 percent of the $100 billion global defence technology market, and exports products to more than 50 countries. This convergence of innovation, manufacturing, and deployment strengthens national security while creating globally competitive enterprises.
Beyond defence, policy momentum continues to drive innovation across the broader startup ecosystem. Fintech companies have benefited immensely from simplified KYC norms and the massive adoption of UPI. Agritech startups are leveraging initiatives such as PM-KISAN and e-NAM to integrate seamlessly with rural markets, improving farmer incomes by 20 to 30 percent. Healthtech innovation received a strong push through faster CDSCO approvals post-pandemic, while cleantech startups are riding the wave of PLI incentives and the National Green Hydrogen Mission to support India’s ambitious 500 GW renewable energy target by 2030. Inclusive growth is also visible, with over one lakh women-led startups emerging under the Stand-Up India initiative.
Together, these developments paint the picture of a resilient and maturing ecosystem. India today hosts more than 1.2 lakh DPIIT-recognized startups, over 100 unicorns, and an ecosystem valuation approaching $500 billion. To sustain and amplify this growth, the next phase must focus on deeper public-private partnerships, expanded Funds of Funds to ensure long-term capital availability, skill corridors aligned with the National Education Policy 2020, and global sandbox environments that accelerate real-world testing and international adoption.
National Startup Day reinforces a simple but powerful truth: India’s startup journey is no longer about potential it is about execution. With defence-led reforms setting the benchmark and innovation as the engine, Indian startups are generating employment, strengthening strategic autonomy, and shaping a $5 trillion economy one deployable, mission-ready solution at a time.
