In June 2025, somewhere in the mountains in some northern part of India, a machine gun scanned the empty range with cameras and sensors and locked onto a target. No human command or involvement. The gun aimed, and fired at the dummy target and hit the mark.

This was a real Indian Army trial of a gun manufactured by Indian company BSS. It was also a glimpse into a future where decisions once made by soldiers will be increasingly handled by algorithms.

India’s defence tech startups are not watching from the sidelines. They’re building the systems that could define the next era of national security.

According to Inc42’s India’s Defence Tech Startup Ecosystem Report 2025, the global AI military market is worth $16 Bn in 2025 and will more than double to $35 Bn by 2030, growing at 17% CAGR. The drivers are clear, intensifying geopolitical tensions, urgent modernisation needs, and the proven performance of AI systems in conflicts from Ukraine to Gaza.

In this global race, India is the world’s fifth-largest military spender at $86 Bn in 2024, alongside the US, China, Russia, and Germany. And it’s moving fast to bring AI into the core of its........

© Inc42