In a landmark development that underscores deepening Indo-US defence ties, seven Indian startups have been selected to participate in an exclusive defence and space collaboration programme. The initiative, co-launched by Indian investor Indusbridge Ventures and U.S.-based FedTech in September 2024, marks the first such endeavour aimed at fostering bilateral cooperation in defence and dual-use technologies.

The programme’s participants include cutting-edge Indian companies such as KaleidEO, a space imaging pioneer; EtherealX, a rocket manufacturing firm; and Shyam VNL, an artificial intelligence-driven enterprise. These startups will engage with key U.S. defence entities, including the Department of Defense, the Defense Innovation Unit, and major industry players like Northrop Grumman, Lockheed Martin, and RTX. While specific projects remain under wraps, the initiative opens unprecedented access to the U.S. defence and space market—the largest in the world.

Strategic Vision

According to Rahul Devjani, managing partner at Indusbridge Ventures, the programme offers startups critical resources, mentorship, and connections with industry leaders in the U.S. He added that collaborating with FedTech is expected to accelerate private-sector partnerships in defence and dual-use technologies. The collaboration aligns with the broader goal of strengthening bilateral ties and fostering innovation through cross-border industrial partnerships.

Indian startups, operating at the intersection of technology and defence, are poised to compete for a share of the U.S. market, estimated at $1.5 billion annually in niche segments. According to sources familiar with the matter, these firms could collectively generate revenues ranging from $500 million to $1 billion annually through their participation. Such prospects would place them ahead of domestic and international competitors in critical technological areas.

Unveiling New Opportunities

The programme’s significance extends beyond immediate commercial opportunities. By working closely with U.S. defence leaders, Indian startups will gain exposure to advanced technologies and operational frameworks. This collaboration could also catalyse India’s long-term aspirations to become a global hub for defence innovation and manufacturing.

The announcement follows high-level discussions between India’s National Security Advisor Ajit Doval and his U.S. counterpart Jake Sullivan. The January meeting in New Delhi focused on advancing bilateral defence initiatives, including closer ties between the U.S. Defense Innovation Unit and India’s Innovations for Defense Excellence (iDEX). Their agenda highlighted the adoption of emerging commercial technologies for military applications and the operationalisation of Quad workstreams to address regional security challenges.

Indo-US Defence Relations: A Broader Context

This development is emblematic of a broader transformation in U.S.-India defence cooperation over the past two decades. The U.S. has emerged as a major supplier of defence equipment to India, facilitated joint military exercises, and signed key technical agreements to enhance interoperability and access to high-end technologies. The Quad—comprising India, the U.S., Japan, and Australia—further underscores the strategic importance of this partnership, particularly in the Indo-Pacific.

The collaboration programme comes at a time when India is ramping up efforts to position itself as a leader in defence innovation. With a strong emphasis on indigenisation under initiatives such as ‘Make in India’ and Atmanirbhar Bharat, the selected startups exemplify the country’s growing capabilities in space, defence, and dual-use technologies.

Future Prospects

While the U.S. government and defence corporations have yet to comment on the specific details, the programme’s potential impact is clear. For India, this collaboration is not just a commercial opportunity but a strategic milestone. It paves the way for greater integration of Indian firms into global defence supply chains and reinforces India’s role as a trusted partner in securing regional stability.

As these seven startups embark on a journey that could redefine the contours of Indo-US defence relations, the initiative signals a new era of innovation, cooperation, and shared aspirations between the two democracies.