India’s defence technology sector is on the cusp of a transformative era, with projections indicating a significant expansion over the next five years. Valued at $7.6 billion in 2025, the market is expected to nearly triple to $19 billion by 2030, growing at a robust compound annual growth rate (CAGR) of nearly 20 per cent. This surge is driven by a decisive shift from platform-centric development to advanced engineering and digital capabilities, according to a recent report by Quess Corp, a leading staffing and workforce solutions provider.
The report highlights that technology-led systems will comprise almost 50 per cent of India’s overall defence market by 2030. This transition is underpinned by rapid advancements in areas such as computer vision, autonomous systems, counter-drone technologies, underwater robotics, advanced sensors, directed-energy research, and software-led mission systems. This momentum is further fuelled by a burgeoning ecosystem of over 1,000 defence-tech startups and 194 firms engaged in innovation programmes.
“These roles account for less than 5 per cent of the current defence workforce and could bottleneck aircraft development, unmanned systems, naval projects and secure communication networks.”
The report also underscores critical shortages in specialised engineering roles, including radar engineering, radio frequency engineering, avionics, propulsion, optical engineering, quantum communication systems, systems integration, test and validation, and certification. These roles are crucial for advancing India’s defence capabilities but currently represent less than 5 per cent of the defence workforce. Without targeted skilling initiatives, 40–45 per cent of these roles may remain unfilled by 2030, potentially limiting deployment readiness, slowing production cycles, and affecting export competitiveness.
Counter-drone technologies are emerging as the fastest-growing segment within India’s defence innovation ecosystem. The sector is projected to grow at nearly 17 per cent CAGR, reaching $1.4 billion by 2029. Notably, 71 per cent of total startup funding in defence-tech startups is directed towards counter-drone solutions, reflecting the strategic importance and rapid advancements in this domain.
“As much as 71 per cent of total start-up funding in defence-tech startups is directed toward counter-drone solutions, the fastest-growing segment in India’s defence innovation ecosystem. The counter-drone market is projected to grow at nearly 17 per cent CAGR, reaching $1.4 billion by 2029.”
Kapil Joshi, CEO of IT Staffing at Quess Corp, emphasised the critical nature of this period for India’s defence sector. “The next five years are decisive for India to become a global systems leader. Scaling defence-ready AI and frontier engineering talent by 5–6 times is not just an industry need; it is a national imperative,” he said.
The report also highlights the need for substantial investment in certification, safety engineering, testing, and validation roles, which are expected to see the sharpest rise in demand. Addressing these skill gaps is essential to maintaining India’s competitive edge in the global defence market and ensuring the timely deployment of advanced defence technologies.
As India navigates this pivotal period, the focus on developing a skilled workforce and fostering innovation will be crucial. The projected growth in the defence technology market presents a unique opportunity for India to solidify its position as a global leader in defence innovation and engineering.