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In a significant move highlighting the growing defence partnership between India and the United States, seven Indian startups have been selected for a unique programme focused on defence and space collaboration. Launched jointly by Indian investor Indusbridge Ventures and U.S.-based FedTech in September 2024, this initiative is the first of its kind, designed to bolster bilateral cooperation in defence and dual-use technologies.
Among the participating startups are prominent Indian firms such as KaleidEO, a leader in space imaging; EtherealX, specializing in rocket manufacturing; and Shyam VNL, an AI-driven enterprise. These companies will collaborate with major U.S. defence entities, including the Department of Defense, the Defense Innovation Unit, and industry giants like Northrop Grumman, Lockheed Martin, and RTX.
Although the specific projects remain undisclosed, the programme offers unparalleled access to the U.S. defence and space market—the largest globally.
Rahul Devjani, managing partner at Indusbridge Ventures, highlighted the initiative’s role in providing startups with critical resources, mentorship, and networking opportunities. Collaborating with FedTech is expected to accelerate private-sector partnerships in defence and dual-use technologies, aligning with broader goals to enhance bilateral ties and foster innovation through industrial collaboration.
Indian startups participating in this programme are well-positioned to tap into niche segments of the U.S. defence market, estimated to be worth $1.5 billion annually. According to insiders, these startups have the potential to collectively generate revenues between $500 million and $1 billion annually, placing them ahead of both domestic and international competitors in key technological areas.
Beyond immediate commercial benefits, the collaboration will expose Indian startups to cutting-edge technologies and operational frameworks employed by U.S. defence leaders. This knowledge transfer could act as a catalyst for India’s aspirations to become a global hub for defence innovation and manufacturing.
The initiative follows high-level discussions in January between India’s National Security Advisor Ajit Doval and U.S. counterpart Jake Sullivan, held in New Delhi. The talks aimed to advance bilateral defence initiatives, including strengthening ties between the U.S. Defense Innovation Unit and India’s Innovations for Defense Excellence (iDEX).
Topics also included adopting emerging commercial technologies for military applications and operationalising Quad workstreams to address regional security challenges.
This programme reflects a broader evolution in U.S.-India defence ties over the past two decades. The U.S. has become a key supplier of defence equipment to India, conducted joint military exercises, and signed technical agreements to enhance interoperability and access to advanced technologies. The Quad alliance, consisting of India, the U.S., Japan, and Australia, underscores the strategic significance of this partnership in the Indo-Pacific region.
India is simultaneously pursuing initiatives like ‘Make in India’ and Atmanirbhar Bharat to strengthen its indigenous defence capabilities. The selected startups exemplify the country’s growing expertise in space, defence, and dual-use technologies, furthering its position as a leader in the global defence landscape.
Although details from U.S. defence corporations and the government are still awaited, the programme’s impact is already evident. For India, this initiative represents more than just a commercial opportunity—it’s a strategic milestone. By integrating Indian firms into global defence supply chains, this collaboration solidifies India’s role as a key partner in promoting regional stability.
As these seven startups embark on a transformative journey, the programme heralds a new chapter in Indo-US defence cooperation, fostering innovation, mutual growth, and a shared vision for security and technological advancement.
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