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Indian Defence Tech Startups- a thread: 🇮🇳 Why the US defence-tech ecosystem thrives, why India’s is still nascent, and what needs to change- fast. A sober look at capital, state support, AI’s role, exports, and national sovereignty. US defence-tech startups raised over $100B+ between 2020–2024. Anduril alone raised ~$2.3B. Shield AI, Saildrone, Rebellion Defense, Palantir (older but relevant)- are all AI-native, hardware-software hybrid, defence-first companies. India? We’re scratching $500M cumulatively. Why this delta? -US DOD’s $850B budget directly flows into startups via SBIR, DIU, AFWERX etc. -DARPA makes moonshots real. -CIA has In-Q-Tel. -30+ VCs focused only on dual-use and defence tech. -Acquisitions are fast+certain. India lacks each of these pillars. Startups like NewSpace, ideaForge, Tonbo, Optimized Electrotech are building solid tech in India. But scale is small. Procurement cycles are 2–5 years. DRDO is both regulator and competitor. VCs hesitant: exit paths unclear, market access limited. This demoralises founders. AI is redefining warfare. -Autonomous drones -Swarm intelligence -Signal interception & real-time edge inference -Decision support for commanders In the US, AI-first is the default. In India, we’re still pitching PoCs to generals in PowerPoint. If you're an Indian founder building defence or dual-use tech, ambition should be: -Replace imports (radars, comms, guidance, ISR) -Use AI-native design from day zero -Think $1B+ outcomes, not just tenders Don’t build to get a DRDO contract. Build to make them obsolete. What should VCs do? -Create defence-specific deep-tech funds -Be patient capital: 7–10 year cycles -Hire ex-forces, DRDO scientists as advisors -Push for US/Israel-style fast procurement by lobbying -Co-invest with DPSUs + build GTM pipelines into MoD Only private capital can retain good talent in India for our defence tech startups. What should govt do? -Split DRDO’s regulatory & R&D roles -Make “Startup-led Trials” a procurement category -Declassify data to train AI systems -Export-friendly rules like UAE/Israel -Invest in 50 startup techs per year like SBIR India imports ~60% of its defence needs. In FY23, we spent ~$70B on defence- almost half on imports. Every 1% import replaced = $700M retained. Exports? ~$2.6B now. With focused push, we can cross $25B by 2030. That’s job creation, IP wealth, and true sovereignty. Sovereignty doesn’t come from neutrality. It comes from deterrence. Self-reliance in defence = -IP retention -Economic strength -Negotiation power in geopolitics -Faster response to crises -Export leverage Offence isn’t optional. It’s insurance. India needs a DARPA moment. Founders need to build with ambition, not submission. VCs need to stop avoiding hard tech. Govt needs to bet on startups like it bets on ISRO. Defence-tech isn’t just a market. It’s strategy. There's a reason why we don't see defence tech startups in media or shark tank etc. It's not mainstream, it's not celebrated. Awareness is another place where our media-tech startups can work at by amplifying such startups. Export weapons, military grade equipments, import the best tech, tear it down to learn, invest heavily in R&D, retain good talent- don't let brain drain happen, increase risk appetite and see the greatest new-gen weapons coming out of India 🇮🇳 I have a lot of hope. Jai Hind.