Drone wars, AI strikes, and India’s startup surge

Every disaster has a silver lining, they say. The Second World War, for instance, transformed the United States into the world’s largest military manufacturer. Perhaps the latest conflict between India and Pakistan, now under a fragile ceasefire, might similarly energise India’s burgeoning defence startup ecosystem.

That is, of course, if the war between two nuclear-armed nations does not erupt again into an apocalypse, and if the country, and the world, survive to tell the tale.

The latest conflict marked a significant shift towards the dominance of electronic and AI-powered warfare. Artificial Intelligence has become a pervasive force on the battlefield, influencing multiple domains including surveillance, cyber operations, psychological warfare, and command systems.

At the forefront of this transformation are advanced autonomous drones deployed by both countries. These unmanned machines support real-time surveillance, intelligent target recognition, jamming of enemy communications, and even kamikaze strikes that can differentiate between civilian and military targets.

One defence analyst described today’s most effective weapon systems using the acronym SPEAR: Small, Precise, Effective, Autonomous, and Reliable. Importantly, they minimise human casualties while offering cost efficiency.

A new podcast, Drone Wars, produced by Firestorm Studios, explains how these flying machines have revolutionised contemporary life, from agriculture to warfare. It highlights how cheap Ukrainian “homemade” drones ravaged the massive Russian fleet in the Black Sea, and how Yemeni Houthi drones sank ships carrying cargo worth millions of dollars. For context, while a bomber aircraft may cost 1 billion US dollars, a Ukrainian Magura V5 drone can be built for just 250,000.

Building Muscle

While India still relies substantially on imported systems, primarily from Russia, Israel, and France, it has rapidly developed an indigenous defence technology ecosystem, driven by the Narendra Modi government’s “Make in India” initiative. In contrast, Pakistan remains heavily dependent on imports from China and Turkey.

According to one report, the India–Pakistan war is seen by China as a testing ground for their untested weaponry. Both countries have deployed such systems in large numbers, although many operational details remain unverified due to competing propaganda claims.

Globally, countries like China, the US, Russia, Turkey, and Israel lead in AI-enhanced arms manufacturing. However, India has made significant strides, supported by Defence Public Sector Undertakings (DPSUs), the Defence Research and Development Organisation (DRDO), Hindustan Aeronautics Ltd (HAL), and a growing network of private companies.

Since the opening up of the defence manufacturing sector, several private sector majors, over 15,000 Micro, Small & Medium Enterprises (MSMEs), and around 1,000 startups have become active in the sector.

They collectively aim to tap into the Ministry of Defence’s 10.5 lakh crore-rupee modernisation budget (2023–2030). According to one study, this opportunity has unleashed a wave of entrepreneurial energy in India’s young private defence manufacturing ecosystem.

India, the world’s second-largest defence force and third-largest military spender, is also targeting the global defence market, valued at over 580 billion US dollars. Defence exports from India crossed 2.4 billion US dollars last year. Equity funding in Indian defence startups surpassed 250 million US dollars between 2020 and 2024.

Early-Stage Funds

Among the early-stage venture investors in the sector is Ajay Kumar, former Union Defence Secretary and a Kerala-cadre IAS officer. His Mounttech Growth Fund has reportedly raised 400 crore rupees and aims to invest in 30 startups. Its first beneficiary is the Bengaluru-based space tech firm GalaxEye, founded by five students and alumni of IIT Madras. The company is building the “world’s first Hybrid Imaging Satellite”.

While major public and private sector players focus on large aerospace and defence platforms, startups are gravitating toward next-generation AI systems such as autonomous drones, anti-drone solutions, digital warfare platforms, and cyber weaponry.

India’s private drone sector, still young, has expanded rapidly, with around 300 startups – many led by IIT alumni – developing military, civilian, and dual-use drones. Government initiatives like iDEX and the Technology Development Fund provide critical support. The Indian Air Force’s nationwide competition for swarm drone architecture has attracted hundreds of entries, highlighting growing grassroots interest.

Flying High

Two leading players in this space are NewSpace Research & Technologies (NRT), based in Bengaluru, and Mumbai-based IdeaForge. NRT, cofounded in 2018 by former IAF pilot Sameer Joshi and IIT Delhi graduate Julius Amrit, focuses on swarm drone technologies and partners with HAL and DRDO. Its high-density swarming systems are among the first of their kind delivered to a national force.

NRT has secured a 15 million US dollars contract from the Indian Army and co-developed the Air-Launched Flexible Assets (Alfa) and the CATS Warrior UCAV. This “Loyal Wingman” drone, designed to operate alongside Su-30 and Tejas fighters, can carry 600 kg of payload and perform autonomous missions. The company is also building a High Altitude Platform under a 42 crore-rupee project with HAL.

IdeaForge, founded in 2007 by IIT Bombay graduates Ankit Mehta, Rahul Singh, Ashish Bhat, and Narain Vyas University graduate Vipul Joshi, is India’s largest UAV manufacturer. Known for its Switch UAV and Netra series, the company serves a wide array of defence and internal security agencies. These drones are prized for their ruggedness, endurance, and real-time surveillance capabilities.

Kerala’s Effort

While most of India’s defence startups are clustered in Bengaluru, Chennai, and Mumbai, Kerala has also made inroads. Kochi-based EyeROV, co-founded by Johns T Mathai and P Kannappa Palaniappan, is India’s first commercial submersible remotely operated vehicle (ROV) company. Its ROVs are used by DRDO and the Coast Guard for underwater surveillance and mine detection.

The startup recently raised 10 crore rupees in a pre-Series A round led by Unicorn India Ventures. Mathai and Palaniappan graduated from the College of Engineering, Trivandrum, and took their master's degrees from the IITs of Delhi and Chennai, respectively.

Kerala, which has consistently ranked high in India’s startup ecosystem, recognised the opportunities in the defence sector early. In 2021, Kerala Industrial Infrastructure Development Corporation (Kinfra) launched a defence park in Ottappalam to attract MSMEs in the aerospace and defence components sector. However, the 60-acre park currently hosts only five operational firms, indicating underutilisation despite its potential.

In 2024, the Kerala Space Park (KSPACE) became operational. Located in Trivandrum – cradle of the Indian space programme and near the Vikram Sarabhai Space Centre (VSSC) and Indian Institute of Space Technology (IIST) – it aims to build a comprehensive space-tech ecosystem.

The state budget recently allocated 52.5 crore rupees for its development, including facilities for liquid propulsion and aerospace control systems. The park has attracted both domestic and international collaborations, though momentum has been slower than expected.

Missing in Action

Despite this progress, Kerala’s defence innovation pipeline remains underdeveloped. In March 2024, TikTalkNewsletter highlighted how only a few of Kerala’s 6,000 registered startups are aligned with the defence sector. Anoop Ambika, CEO of KSUM, announced plans to identify 100 such firms and establish a partnership with the Indian Army to create a corpus fund.

To accelerate this shift, the Kerala Defence Innovation Zone (K-DIZ) was launched in November 2024 at Huddle Global by KSUM and Technopark, the latter now headed by retired army colonel Sanjeev Nair. This initiative aims to develop defence-specific technologies and support them through a new Centre of Excellence in Technopark Phase IV. A DRDO–KSUM memorandum formalised this partnership.

A panel discussion at 2024 Huddle on opportunities for defence startups included representatives from the armed forces, DRDO, iDEX, and entrepreneurs like Mathai. The session especially mentioned Jayesh Natarajan, an innovator from Kerala who won an Indian patent for his twin-magazine rifle design, which is being considered by the Army Design Bureau.

With institutions like VSSC, IIST, IIT Palakkad, and NIT Calicut in place, Kerala has a robust foundation to become a defence and aerospace hub. Yet, a catalytic force, perhaps in the form of dedicated funding, procurement support, or flagship projects, is still missing.

Another war continues

The guns have fallen silent on both sides as India and Pakistan agreed to a ceasefire. But the events of the past few days reveal one thing: India is in a continues battle – against fake news. The terror unleashed through news websites and television channels triggered panic and anguish in millions. Fact-checking teams from the Press Information Bureau and Ahmedabad-based Alt News (ironically, a favourite target of right-wing trolls) had to work overtime to quell the flood of rumours. While much has been said about the threat of AI-generated fake content, the last few days proved that even without AI, our television channels and news websites can go berserk. 

While X (formerly Twitter) took down 8,000 accounts after a government request, social media giants like Facebook, Instagram, and WhatsApp showed they have little control over the deliberate spread of fake news. India has already been feeling the consequences of this loose oversight, and the current conflict has made the danger painfully clear. But tackling this is tricky. These platforms are based in the US where, ironically, the White House itself posted six AI-generated fake images in recent days, including one of President Donald Trump as the Pope. Given that, all we can do is kneel down and pray for sanity.

Fake news, but real money

We’ve been crying hoarse about the fake news economy, and a recent article by 404 Media offers a revealing look into how it all works. We thought this was a good time to share some of those insights. Remember the viral video of the Hollywood sign seemingly burning during the California forest fires last year? According to 404 Media, that fake video alone could have earned its creator a few thousand dollars easily. The report notes that influencers are currently earning around 100 US dollars per million views on Instagram, because the more viral the video, the longer users stay on the app, giving Instagram more opportunities to show ads. Meta reportedly paid out 2 billion US dollars in 2023 to content creators posting on Facebook alone. Factor in the other social media platforms, and it becomes clear why fake news is such a big business.

Made to order knee and hip

Hip and knee replacement surgeries are becoming increasingly common as ageing populations grow across the world. One of the key challenges in such orthopaedic procedures is finding replacement parts that fit perfectly. A startup based in Thailand has developed a 3D-printed solution that produces custom-shaped implants tailored to each patient. The startup, Meticuly, uses a portable 3D printer that can be fed the design of the required implant and prints the replacement part – made of titanium – even as surgeons are operating. According to e27 report, the impact goes beyond medical jargon and into real human experience: less time under anaesthesia, reduced blood loss, and faster recovery.

Murder she wrote, and taught

Want to write like a queen? BBC says it can help. It has used AI to recreate the voice and likeness of the late Queen of Crime Fiction, Agatha Christie, for a digital course on “how to craft the perfect crime novel”. But before you accuse the Beeb of fake news, rest assured – they got the green light from the Agatha Christie Estate and used restored audio, licensed images, interviews, and her own writings to pull it off. The course features 11 video lessons, covering everything from “structuring an airtight plot” to “building suspense”, reports The Verge. Somewhere, Hercule Poirot is probably twirling his moustache in disbelief.