India's defence technology industry is growing at a never-before-seen pace with funding growing 61 times over the decade, a new report released on Friday said.
The 'India Military Tech Report 2025' by market intelligence platform Tracxn reported that defence technology startups have raised $192.4 million in 2025 alone, the highest year so far.
Since 2016, the industry has raised a cumulative $611 million in 211 rounds of funding, the report added. The deal count has also risen exponentially, from merely three in 2016 to 36 in 2023, with 20 deals already for this year.
Co-Founder of Tracxn Neha Singh termed India's defence technology landscape as being in a "defining phase," driven by innovation, enabling policies, and growing investor interest.
"India's Defence Technology industry is at a defining moment, driven by policy support, innovation, and increasing investor engagement," Singh stated. She added that technologies including drones, artificial intelligence, robotics, and cybersecurity are increasingly becoming game-changers that are now transforming from proof-of-concept experiments to mission-critical solutions.
Delhi NCR and Bengaluru have emerged as the top cities for military tech startups, with Delhi NCR raising $194.6 million and Bengaluru raising $166.1 million. India now boasts over 150 working military tech startups, 76 of which have achieved equity funding till date.
Early-stage firms remain the investment leaders. Raphe mPhibr paces the list with its $100 million Series-B, followed by $33 million from Newspace Research and $25.4 million from Sagar Defence Engineering.
Late-stage deals are also on the rise, with Big Bang Boom Solutions raising $29.9 million in Series-C and Tonbo Imaging raising $20.4 million in Series-D, the report added.
Government programs like Atmanirbhar Bharat, iDEX, and Defence Industrial Corridors are also contributing significantly to the growth of the sector.
The defence technology sector also indicates maturity and consolidation, with four firms listing themselves on the stock exchange and close to 110 venture capital companies investing in the sector till now.
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