Growth of Indigenous Technology for the Defence Sector in India

By Agnishwar Jayaprakash, Founder and CEO, Garuda Aerospace

A new era of indigenous innovation is reshaping India’s defence landscape, as the nation steadily pivots towards self-reliance. This transformation is not just about building weapons and systems locally—it’s about creating a dynamic ecosystem that fosters technological autonomy, economic strength, and national security.

Why Indigenous Defence Technology Matters

The importance of homegrown technology in the defence sector goes beyond national pride. Indigenous development ensures strategic autonomy, enabling the country to make independent decisions during times of geopolitical tension or conflict. It reduces reliance on imports, enhances operational readiness, and enables faster, more context-specific responses to emerging threats. From an economic perspective, building technology domestically spurs job creation, strengthens ancillary industries, and reduces capital outflow. It also fosters a culture of innovation that spills over into other high-impact sectors like aerospace, logistics, telecommunications, and advanced manufacturing.

India’s armed forces today are benefiting from systems specifically designed to tackle the country’s unique geographical and operational challenges. Whether it is high-altitude warfare, coastal surveillance, or counterinsurgency in dense forests, indigenous solutions are proving more effective, reliable, and cost-efficient.

Drones: A Case Study in Indigenous Innovation

A standout success story in India’s indigenous defence journey is the rapid advancement in unmanned aerial vehicle (UAV) technology. Indian drone startups and defence firms are developing UAVs tailored for reconnaissance, border surveillance, disaster relief, and tactical support roles. The drone industry in India is witnessing a transformative shift, with indigenously developed UAVs playing an increasingly pivotal role in national security and strategic operations. With features such as advanced sensors, thermal imaging, and AI-driven analytics, drones deliver critical intelligence in challenging terrains—from deserts to dense forests.

One of the key advantages of domestically developed UAVs lies in secure data handling. Since sensitive information remains within national infrastructure, the risk associated with foreign data exposure is significantly reduced. Furthermore, seamless integration with existing defence networks ensures operational efficiency. These locally built drones also offer notable benefits in terms of cost-effectiveness and customizability, making them highly scalable for both defence and civilian applications.

Government as an Enabler

The Indian government has played a catalytic role in accelerating this transformation. Initiatives like Make in India, Defence Industrial Corridors, Technology Development Fund (TDF), and Innovations for Defence Excellence (iDEX) are creating fertile ground for domestic defence startups and MSMEs to flourish. The Defence Research and Development Organisation (DRDO) remains a cornerstone of this ecosystem. Its recent policy to open testing facilities and collaborate with private entities and academic institutions is a major step forward in democratizing R&D access. Additionally, the introduction of positive indigenization lists, which mandate procurement of specific defence items only from domestic sources, provides critical market assurance to Indian manufacturers. This gives both established and emerging players the confidence to invest in R&D, prototyping, and large-scale production.

Leveraging Dual-Use Technology

A notable strength of India’s indigenous defence ecosystem is the dual-use nature of several emerging technologies. Innovations developed for the defence sector—such as AI, autonomous vehicles, geospatial mapping, and advanced robotics—are increasingly finding applications in civil infrastructure, disaster management, precision agriculture, and smart cities. This dual-use capability allows Indian companies to scale innovations across sectors, reducing development costs while maximizing national benefit. For instance, the AI-enabled drones built for defence surveillance can also be used for border area infrastructure inspections, wildlife monitoring, or mapping inaccessible terrains.

India’s Emergence as a Global Defence Power

India’s ambition extends beyond self-reliance. The country is rapidly emerging as a trusted global defence manufacturing hub. With its strategic geographical location, democratic values, and growing technological capabilities, India is being seen as a reliable partner in the global defence supply chain.

Cutting-edge areas like artificial intelligence, cybersecurity, electronic warfare, hypersonics, and space-based ISR (intelligence, surveillance, and reconnaissance) are now integral to India’s defence strategy. Indigenous satellite networks are enabling secure communication in remote zones, while AI-powered systems are aiding in predictive maintenance, autonomous threat response, and tactical planning. These advancements enhance India’s deterrent capabilities, and at the same time, position the country to export affordable, advanced, and ethical defence technologies to friendly nations, expanding geopolitical influence through technology diplomacy.

Building the Defence Tech Workforce of the Future

India’s demographic dividend is a key asset. With a large pool of engineers, coders, and technologists, the country has the human capital required to drive innovation. What’s needed now is a structured pipeline—through defence-focused incubators, fellowships, skilling programs, and academic partnerships—to convert this talent into a mission-ready workforce. Collaborations between academic institutions and defence firms must go beyond research to include joint labs, field testing, and IP commercialization. Educational curriculums need to evolve to include defence innovation, AI for security, and aerospace design, ensuring a future-ready talent base.

Challenges That Must Be Addressed

While progress is significant, several challenges still hinder India’s full potential. Defence R&D remains underfunded relative to global peers. Lengthy procurement cycles and compliance-heavy processes can deter startups and agile players. There is also a need to deepen collaboration between public and private sectors. PSUs, while important, must become more open to co-development with nimble, innovation-led companies. The prototype-to-deployment gap must be addressed with more robust testbeds, funding, and smoother integration into forces.

Further, the inclusion of micro, small, and medium enterprises (MSMEs) is essential. These firms offer flexibility, ingenuity, and low-cost solutions—qualities vital to the next wave of disruptive innovation in defence.

The Road Ahead

India stands at a historic inflection point. The vision of becoming a global leader in defence technology is within grasp—but it requires sustained commitment, cross-sector collaboration, and a willingness to embrace new ideas and partners. The convergence of policy, innovation, and entrepreneurial energy is creating unprecedented momentum. With continued government support, industry-academia partnerships, and an ecosystem that rewards innovation, India can not only meet its own defence needs but export peace-enabling technologies to the world.

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