Operation Sindoor has marked a pivotal moment in India’s defence landscape, showcasing the transformative impact of private sector innovation on the country’s military capabilities. Historically reliant on public sector undertakings (PSUs) and foreign imports, India’s defence sector has, over the past decade, witnessed a significant shift. Private companies are now at the forefront, driving technological advancements and contributing directly to the modernisation of the armed forces.

Major players such as TATA Advanced Systems (TAS), Alpha Design Technologies (ADTL), Paras Defence & Space Technologies, ideaForge, and IG Drones have evolved from niche contributors to central partners in defence production. TAS, for instance, has partnered with Airbus Spain to manufacture C-295 military transport aircraft at India’s first private aircraft factory in Vadodara, symbolizing the new era of indigenous aerospace capability. Paras Defence has gained recognition for its expertise in electronic warfare, optics, and drone systems, while Alpha Design delivers a wide array of solutions, including radars, tank components, and satellite payloads.

The private sector’s role extends to large conglomerates like Larsen & Toubro (L&T), Adani Group, and Bharat Forge. L&T secured contracts exceeding ₹13,000 crore for advanced radar and weapon systems, and Adani has established new plants to produce ammunition and missiles, aiming to supply a quarter of India’s small-calibre ammunition needs. These developments underscore a broader trend: Indian companies are not just supplementing but actively shaping the country’s defence ecosystem.

A standout achievement has been the rapid growth of indigenous drone technology. Following lessons from the 1999 Kargil War, where the need for real-time intelligence was acutely felt, Indian firms have made significant strides. By 2025, the armed forces are deploying a range of home-grown drones, such as ideaForge’s SWITCH UAV and NETRA V2, Alpha Design’s SkyStriker (developed with Israel’s Elbit Systems), and Solar Industries’ Nagastra-1 loitering munition. NewSpace Research has introduced drone-swarm capabilities, positioning India as a leader in this domain.

The Drone Federation of India, representing over 550 companies, aims to make the country a global drone hub by 2030, with the domestic drone market projected to reach $11 billion-over 12% of the global share.

Government policy has been a critical enabler of this transformation. Since 2021, India has banned imported drones and launched a Production Linked Incentive (PLI) scheme to boost local manufacturing. Initiatives like iDEX (Innovations for Defence Excellence) and SRIJAN (import substitution) have opened doors for start-ups and established firms alike. As a result, indigenous defence production reached ₹1.3 lakh crore in FY24, with the private sector’s share rising steadily. Defence exports hit nearly ₹24,000 crore ($2.9 billion) in FY25, with ambitions to double that by 2029.

Operation Sindoor also highlighted the growing sophistication of India’s indigenous arsenal, from medium-range surface-to-air missiles (MRSAMs) to advanced loitering munitions and electronic warfare systems. The operation showcased a robust supply chain, with both large firms and a network of SMEs contributing to the military’s readiness and technological edge.

Looking ahead, the future of India’s defence sector is expected to be shaped by AI-powered autonomous systems and space-based capabilities. Private firms are increasingly involved in the development of military satellites and space technology. Earlier in 2025, three South India-based private companies were selected to co-develop 31 satellites under the Space-Based Surveillance-3 (SBS-3) programme, marking the first time private firms are building satellites for strategic use. With 52 new satellites planned-21 by ISRO and 31 by the private sector-India’s space surveillance capabilities are set for rapid expansion.

Operation Sindoor has not only demonstrated India’s military strength but also signalled the coming-of-age of a self-reliant, innovation-driven defence industry. The synergy between private enterprise, government policy, and military vision is positioning India as a high-tech military power, with the private sector playing a decisive role in shaping the future of national security.

Based On ET News Report