India’s defence-tech ecosystem is no longer a backroom experiment—it’s a frontline force multiplier. From the labs of IITs and DRDO to billion-dollar contracts and export deals, startups are transitioning from prototypes to production, fueled by policy tailwinds and geopolitical urgency. In 2025, defence exports hit $2.63 billion (up 32% YoY), with private sector contributions exceeding Rs 15,000 crore, per the Ministry of Defence. iDEX alone signed 430 contracts worth over Rs 2,400 crore with startups and MSMEs, while the FY25-26 budget allocates Rs 449.62 crore to iDEX for 300+ innovators.
This surge—172 military tech startups, 80 funded, 23 at Series A+ (Tracxn)—marks a pivot: From import dependence ($80 billion cumulative) to self-reliance, with startups like ideaForge exporting drones to 20+ nations and Tonbo Imaging equipping 50,000+ army rifles.
As X defence enthusiasts note, “Labs to contracts: Startups aren’t just building tech—they’re building security,” this transition, accelerated by DAP 2020’s 70% indigenisation and Open General Export Licences, could unlock $50 billion domestic market and $15 billion exports by 2030. Here’s how Indian startups are forging the path—from R&D spark to global spark.
Table of Contents
The Policy Propulsion: From iDEX to Export Engines
The 2025 boost stems from strategic policy shifts. iDEX’s Rs 498.78 crore (2021-26) opened 549 problem statements, engaging 619 startups/MSMEs and yielding 430 contracts—procuring Rs 2,400 crore worth of items like drones and optics. The Technology Development Fund (TDF) and ADITI sub-scheme add Rs 449.62 crore for FY25-26, funding up to Rs 10 crore per project. Defence budget: Rs 6.81 lakh crore (up 9.5%), 75% domestic procurement (Rs 1,11,544 crore). Exports: 1,762 authorisations (up 17%), 253 MoUs worth Rs 53,439 crore. X: “iDEX: 430 contracts, Rs 2,400 Cr procured—startups’ policy rocket fuel.”
This bar chart illustrates policy impact:
Source: MoD, iDEX. Exports up 34-fold in decade.
Labs to Contracts: The Transition Trailblazers
1. ideaForge – Drone Pioneer
From IIT Bombay labs (2007), ideaForge transitioned via iDEX contracts for SWITCH UAVs—1,500+ deployed with Army/BSF. 2025: $100M+ funding, $1B+ valuation, exports to 20+ nations. X: “ideaForge: Labs to LAC—1,500 drones securing borders.”
2. Tonbo Imaging – Optics Innovator
IISc spin-off (2009), Tonbo’s night-vision secured Rs 200M MoD order for 50,000 rifles. 2025: $50M funding, global trials. Transition: DRDO co-dev to army deployment.
3. BigBangBoom Solutions – Counter-Drone Warrior
Founded 2018, BBB’s AI systems deployed at 12 airbases via iDEX. 2025: $25M funding, Rs 47 Cr Navy contract for EyeRov underwater bots.
4. NewSpace Research – Space-Missile Maverick
2020 IIT Madras spin-off, NewSpace’s hypersonic propulsion won DRDO contract. 2025: $52M funding, satellite exports.
5. Garuda Aerospace – Heavy-Payload Heavyweight
Chennai’s Garuda (2021) raised $7.27M Series C, securing Army logistics drone contracts. 2025: Exports to Southeast Asia.
| Startup | Lab Origin | Key Contract | 2025 Funding | Export Reach |
|---|---|---|---|---|
| ideaForge | IIT Bombay | SWITCH UAVs (Army) | $100M+ | 20+ nations |
| Tonbo Imaging | IISc | Night-vision rifles (MoD) | $50M | Global trials |
| BigBangBoom | Independent | Counter-drone (Air Force) | $25M | Navy Rs 47 Cr |
| NewSpace | IIT Madras | Hypersonic (DRDO) | $52M | Satellites |
| Garuda | Independent | Logistics drones (Army) | $7.27M | SE Asia |
Source: Tracxn, MoD. 80 funded, 23 Series A+.
Export Potential: From Contracts to Global Combat
Defence exports: $2.63B FY24 (up 32%), private sector Rs 15,000 Cr. Startups drive 34-fold growth: ideaForge’s drones to Philippines, Garuda’s to UAE. Open General Export Licence (2025) eases 1,762 authorisations (up 17%). Potential: $15B by 2030. X: “Exports: Startups’ global garage—$2.63B FY24, $15B 2030.”
This line chart projects exports:
Source: MoD. 34-fold decade growth.
Challenges: From Prototype to Production
Clearance delays (6-18 months), 55% skill gaps, 70% early-stage funding. X: “Contracts won, scaling stumbles—policy’s next frontier.”
The Horizon: $50 Billion Market, Sovereign Security
By 2030: 50 unicorns, 5 lakh jobs, $50B market. Startups aren’t contributing—they’re commanding. Labs to legacy: India’s defence dawn.
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