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AI Adoption To Drive India’s Defence Tech Market To $19 Bn Opportunity By 2030

9 0
13.08.2025

The recent military conflict between India and Pakistan has showcased how modern warfare is changing and how the battlefield of the future will be shaped by drones, artificial intelligence (AI), defence tech prowess and the ability to innovate and deploy advanced, indigenous systems quickly.

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According to Inc42’s latest report — India’s Defence Tech Startup Ecosystem Report 2025 — the country’s defence tech market is projected to grow from $7.6 Bn in 2025 to $19 Bn by 2030, reflecting a compound annual growth rate (CAGR) of 20%.

Almost half of this market value of around $19 Bn is expected to be driven by advanced technologies such as AI, autonomous systems, quantum computing, and next-generation radar and surveillance platforms.

Moving on, the growth rate of India’s defence tech market outpaces the broader defence market, expected to grow at a CAGR of 8% from $27 Bn in 2025 to $40 Bn by 2030, up 48%.

With increasing reliance on drones or unmanned aerial vehicles (UAVs), AI-powered decision-making tools, and highly mobile electric radar systems, the shift is only getting prominent.

The Inc42 report predicts these technologies will constitute 48% of India’s defence market, up from 28% in 2025, by 2030.

There’s an urgent need for India to establish full sovereignty when........

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