India’s Defence AI Reality Check

India’s defence tech moment is here, but with AI taking the centre stage in geopolitical conflicts, are we prepared for the next phase?

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There’s little denying that India’s defence tech moment is here. Thanks to VCs loosening their purse strings, a focus on building up indigenous drones and UAVs, greater policy support, and more startups entering the space, defence tech is no longer confined to the sidelines. 

Nearly 90% ($68 Mn) of the total $78 Mn raised by defence tech startups over the last decade came in 2025 alone.

But if there’s one thing that the recent conflicts in the Middle East have made clear, it’s that the future of defence tech is AI and software-driven systems. In this regard, key gaps remain in India. 

India does not yet have large defence AI companies like Palantir, Anduril, Skydio and others, which are increasingly playing a key role in global defence tech adoption, primarily in the US. 

As global conflicts become more focused on AI, autonomous systems, and software-defined hardware, the rules of the game are being rewritten with each passing day. For India, which has long relied on imports for critical defence technology, this shift presents both a challenge and a rare opportunity to build at home.

But, are we ready for the defence AI future? Let’s find out in this week’s edition of The AI Shift.

India’s Defence AI Dream Isn’t There Yet

While India’s defence tech ecosystem is moving in the right direction, the progress is still uneven. 

From the spectacle of a defence tech startup founder, Amardeep Singh of drone defence company Armory, “This time will be seen as the birth of India’s self-reliance, because whoever your friends are today, [may become the enemy tomorrow].”

From the spectacle of a defence tech startup founder, Amardeep Singh of drone defence company Armory, “This time will be seen as the birth of India’s self-reliance, because whoever your friends are today, [may become the enemy tomorrow].”

According to Singh, India’s software pedigree is well established, but manufacturing remains the harder problem. Building at the scale, quality, and precision that defence and aerospace demand is where the country still needs to close the gap.

India’s defence budget has seen a........

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