Operation Sindoor: How India's private sector is arming our military, and why it could transform the future of defence
Operation Sindoor has put a spotlight on India's growing defence strength, especially the rising role of private companies in military technology. A decade ago, India mostly depended on public sector undertakings (PSUs) and foreign imports for defence needs. But now, private firms are leading innovation and becoming key partners in building modern systems for warfare.
Firms like
Tata Advanced Systems
(TAS), Alpha Design Technologies (ADTL), Paras Defence & Space Technologies, ideaForge, and IG Drones are no longer just supporting players, they are helping shape India's military future. TAS, for example, is working with Airbus Spain to make C-295 military transport aircraft at the country's first private aircraft factory in Vadodara.
Paras Defence is known for its work in electronic warfare, optics, and drone systems. Alpha Design provides everything from radars to tank parts and satellite equipment. Other big players such as Larsen & Toubro (L&T), Adani Group, and
Bharat Forge
are also growing their presence in defence. For instance, L&T won contracts worth over Rs 13,000 crore to supply radar and weapon systems. Adani recently opened two new plants to make ammunition and missiles in Uttar Pradesh, aiming to meet 25% of India's small-calibre ammunition needs.
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Leading the drone revolution
One of the biggest success stories of the private sector has been in drone technology. In the 1990s, India began using Israeli drones like the Heron and Searcher. But the 1999 Kargil War showed how much India needed real-time intelligence from its own systems. Since then, DRDO and private firms have worked to develop Indian drones.
By May 2025, India's armed forces were using many home-grown drones. ideaForge's SWITCH UAV and NETRA V2, made with DRDO, have already been deployed. Alpha Design teamed up with Israel's Elbit Systems to build the SkyStriker, a drone that can carry out precise attacks. Solar Industries' Nagastra-1 added to India's strike options, while NewSpace Research provided drone-swarm capabilities for the Air Force.
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What's coming next?
The development of drones is not slowing down. New platforms are being built for logistics and high-altitude missions, such as Garuda Aerospace's Jatayu and SkyPod for regions like Siachen. Drones like Throttle Aerospace's Raven and AI-based swarm systems from 114AI and NewSpace show how startups are driving the next wave of military technology.
The Drone Federation of India, with over 550 companies and 5,500 pilots, is aiming to make India a global drone hub by 2030. IG Drones, which works with the Indian Army and government agencies, is a good example of how private firms are providing services, research, and manufacturing for defence.
Big numbers, bigger goals
India's defence exports touched nearly Rs 24,000 crore ($2.9 billion) in FY25, and private firms played a huge role. The government wants to double this to Rs 50,000 crore by 2029. The Indian drone market alone could be worth $11 billion by 2030, making up over 12% of the global share.
Earlier this month, defence stocks jumped by up to 4% after Prime Minister Narendra Modi praised Operation Sindoor and said India must lead in defence innovation with its own technology. 'We have proven our strength in modern warfare,' he said.
Policy support fuels growth
The success of Operation Sindoor was made possible by government policies that supported private defence production. Since 2021, India has banned imported drones and launched a Production Linked Incentive (PLI) scheme with Rs 120 crore to boost local manufacturing. In FY24, India's home-grown defence production hit Rs 1.3 lakh crore, and the share of private companies is rising steadily.
Initiatives like iDEX (Innovations for Defence Excellence) and SRIJAN (import substitution) are helping startups and companies enter the defence space.
Looking ahead: Space is the next frontier
The future of defence will involve more AI-powered and autonomous systems, and private firms are well-suited for this challenge. Operation Sindoor showed how a strong partnership between private companies, the public sector, and the military can help India become a high-tech power.
Space will be a big part of this journey. India still lags behind countries like the US and China in military satellites, but it is catching up. Companies like Digantara, Pixxel, Dhruva Space, and Ananth Technologies are working on satellite systems and space tech.
Earlier this year, three South India-based private firms were chosen to co-develop 31 satellites under the Space-Based Surveillance-3 (SBS-3) programme. This marks the first time private firms are building satellites for strategic military use. With 52 new satellites planned, 21 by ISRO and 31 by the private sector, India's space surveillance capability is set to grow quickly.
Inputs from TOI
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