New Delhi, January 19 (MNN): Operation Sindoor has emerged as a decisive turning point, bringing defence technology to the forefront of India’s strategic agenda. While the operation highlighted the country’s dependence on imported defence systems, it also significantly accelerated the push toward indigenous development.

This transformation has been strengthened by robust policy support, assured procurement pathways, and risk-sharing mechanisms, which together have led to a substantial increase in funding. In 2025 alone, defence technology startups attracted USD 68 million in investment, accounting for nearly 13 percent of total deep tech investment in India.

Although drone technology currently dominates the sector, there is rapid expansion across areas such as munitions, signal intelligence, electronic warfare, AI-driven surveillance, and space-based defence systems. This momentum is firmly positioning defence technology as a long-term and stable component of India’s deep tech ecosystem.

The government’s commitment is also evident in procurement decisions. In FY 2025, 81 percent of the total value of capital procurement contracts was awarded to domestic industries, reflecting a strong preference for indigenous solutions.

Government initiatives have actively reduced entry barriers for defence tech startups by mitigating early-stage technical and financial risks. Measures such as subsidised land, shared infrastructure, and access to advanced testing facilities have significantly eased the initial investment burden.

Investor confidence continues to grow in line with government policies. Venture capital firms are increasingly prioritising companies with strong intellectual property portfolios, patents, and certifications, moving beyond superficial product offerings to assess core technological capabilities.

Experts believe the defence tech sector is well positioned for sustained growth. With long-term defence allocations, the strategic necessity of indigenisation, and predictable revenue streams, the market is deep and resilient—pointing toward a rise in both funding volumes and the overall maturity of defence technology startups in the coming years.