Time to Go Global

India's defence and space start-up ecosystems have witnessed exponential growth in recent years, with over 1,000 defence and 250 space start-ups driving deep-tech innovation. Government initiatives such as Innovations for Defence Excellence (iDEX), positive indigenisation lists and allocation of 75% of the defence capital budget for domestic procurement, along with support from Indian National Space Promotion and Authorisation Centre (InSpace), have created vast opportunities.

- Ajay Kumar

These start-ups are focused on developing new products, technologies and intellectual property, setting them apart from service-oriented start-ups in information technology (IT) services, fintech and ecommerce. Product-based start-ups offer unique opportunities and challenges. Innovation drives the creation of products that can be scaled globally.

Once developed, successful products can be replicated and sold to multiple customers without requiring constant resource allocation. This enables start-ups to create proprietary technologies and intellectual property (IP), which gives them a competitive edge in global markets. Products often lead to sustainable, long-term revenue streams through sales and licensing, making them attractive to investors due to their high return potential and scalability. However, to succeed internationally, products must match or exceed competitors in terms of quality, cost-effectiveness and adoption.

Indian defence and space start-ups are creating world-class products and gaining traction in domestic market. But they are yet to turn global in the manner of Anduril, Skydio, SpaceX or Palantir, each a multi-billion-dollar unicorn with established global footprints. Taking the leap forward to the global stage is the next exciting challenge for Indian defence and space ventures. The experiences of start-ups from other countries can provide useful insights.

Example Israel