India’s defence deeptech ecosystem is emerging as a compelling long-term opportunity, backed by strong government demand, policy support, and export potential. With India’s defence budget projected to reach $80 billion in FY25-26, nearly doubling over the past decade, the focus is steadily shifting from imports to indigenous technology development. This structural shift is strengthening India’s DeepTech and defence DeepTech landscape.
Policy enablers such as the Defence Acquisition Procedure (DAP) 2020, large-scale programs like the INR 20,000 crore MALE drone project, and a $20 billion+ defence procurement backlog are accelerating adoption of advanced technologies. As a result, India’s defence deeptech market, currently estimated at ~$6 billion, is expected to grow to $10–12 billion by 2030, driven by demand for surveillance, battlefield systems, and next-generation defence platforms.
High-potential segments include unmanned systems and drones, AI-driven training and protection systems, and power and propulsion technologies. Medium-term opportunities lie in cybersecurity, quantum technologies, and radar and sensor systems, while more capital-intensive areas such as directed energy weapons and space-based defence technologies are likely to mature over a longer horizon.
With geopolitical realignments, supply-chain diversification away from China, and rapid cost declines in AI, sensors, and batteries, India is well-positioned to build a globally competitive defence deeptech flywheel. For companies and investors, early participation in these enabling technologies offers a rare chance to align with predictable government demand and long-term market growth.
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