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Why Defense Tech is India's Next Billion-Dollar VC Opportunity
Entrepreneur magazine
|August 2025 - Startups
INDIA HAS HISTORICALLY IMPORTED 65-70% OF ITS DEFENSE EQUIPMENT - A FIGURE THAT CONTINUES TO DROP AS LOCAL STARTUPS FILL CRITICAL GAPS.
India's defense technology sector is no longer a niche playground for government labs. Today, it has grown into a thriving frontier for venture capital. With geopolitical tensions reshaping global alliances, a $78.8 billion defense budget, and an aggressive push for self-reliance, India is scripting a new chapter in its strategic ambitions. For venture capitalists, this goes beyond patriotism, transcending into a rare trifecta of policy tailwinds, technological disruption, and market urgency. The numbers speak loudly: defense tech startups have attracted over $184 million in VC funding since 2020, with exits via IPOs and acquisitions already demonstrating billion-dollar potential. There are several reasons why savvy investors are betting big on this sector.
MARKET GROWTH MEETS STRATEGIC NECESSITY
This story is from the August 2025 - Startups edition of Entrepreneur magazine.
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