As outlined in a report by Raksha Anirveda, Sagar Defence Engineering Ltd has secured a government industrial licence to manufacture surface and underwater vessels for military use, widening the Maharashtra-based deep-tech company’s role in India’s naval defence industry.

The approval places Sagar Defence among a limited group of private Indian companies authorised to produce vessels for the Indian Navy and Indian Coast Guard.

Subject to regulatory clearances and the conditions attached to the licence, the company can design, manufacture, construct, integrate, assemble, test and supply specified naval defence platforms and associated systems.

The authorisation covers a separate defence-production category from an industrial licence secured earlier this year for specified arms, explosives and ammunition.

The new licence therefore extends Sagar Defence’s permitted activities from individual defence technologies and munitions into the manufacture of surface and underwater naval platforms.

Captain Nikunj Parashar, founder and chairman of Sagar Defence Engineering, described the approval as an important milestone that would strengthen the company’s ability to participate in selected strategic projects.

Sagar Defence was established as a technology-focused defence Start-Up and develops autonomous and unmanned systems for maritime, aerial, defence and commercial applications.

Its portfolio includes platforms intended to operate with minimal or no onboard crew, reflecting the growing military emphasis on robotics, remote operation, artificial intelligence and persistent surveillance.

The company has already developed unmanned surface and underwater systems for maritime missions. Its autonomous vessel, Matangi, completed a 1,500-km voyage from Mumbai to Thoothukudi without human intervention in 2024, in an exercise supported by the Indian Navy.

Its existing work in unmanned marine technology could support a transition from subsystem development to the construction of complete military platforms.

This may be particularly relevant for smaller naval vessels, autonomous surface vessels, unmanned underwater systems and specialised platforms used for surveillance, reconnaissance, coastal patrol, mine countermeasures and maritime security.

Sagar Defence has also pursued international collaboration in this area. In 2025, it signed an agreement with Boeing subsidiary Liquid Robotics to co-develop and co-produce autonomous surface vessels for anti-submarine warfare and undersea domain awareness.

The approval comes as India seeks to reduce dependence on imported military equipment and increase private-sector participation in domestic defence manufacturing.

Government policy has created greater opportunities for Start-Ups, small enterprises and larger private contractors to work alongside public-sector shipyards, defence laboratories and established naval suppliers.

For the Navy and Coast Guard, a wider domestic supplier base could improve access to specialised platforms and support faster experimentation with emerging maritime technologies.

Private deep-tech firms may be able to adapt software-intensive autonomous systems more quickly than conventional manufacturers, although all platforms will remain subject to stringent military safety, quality, operational and certification standards.

The industrial licence does not guarantee contracts, production orders or immediate deployment of vessels.

Sagar Defence must comply with licence conditions, complete further regulatory processes and demonstrate that its designs meet operational, safety and quality requirements.

Naval procurement can involve extensive trials, certification, commercial negotiations and project-specific approvals before a platform enters service.

Nevertheless, the licence provides Sagar Defence with a formal route into a strategically important segment of India’s defence-manufacturing ecosystem. It could allow the company to compete for selected projects involving advanced surface and underwater systems while developing partnerships with government agencies, shipyards and technology suppliers.

The development also underlines the changing character of India’s defence-industrial base, where companies initially focused on drones, sensors, software and autonomous systems are increasingly seeking to build integrated military platforms.

Sagar Defence’s vessel licence will be closely watched as an indicator of whether specialised private Start-Ups can scale from technology development into regulated production of advanced naval systems.

Agencies