31 defence startups exhibit as Gujarat unshackles space-tech from PSU monopoly

For the space and defence community, the Gujarat government’s conference represents a critical milestone in the ongoing shift from DRDO-dominated to startup-driven innovation. The presence of rocket and space startups among 31 exhibitors underscores that the line between space and defence is blurring—opening up funding, testing, and procurement opportunities for satellite, launch, and surveillance startups. The explicit call for collaboration over competition suggests that space-tech ventures may find new pathways into military supply chains by teaming up with hardware and AI specialists.

The Gujarat government’s high-level conference on defence innovation, startups, and emerging technologies marks a significant push to accelerate the integration of private sector capabilities into India’s defence procurement ecosystem. Held on June 19, 2026, at the Gujarat Chamber of Commerce & Industry (GCCI) in Gandhinagar, the event convened policymakers, military veterans, academics, and research organisations to craft a roadmap for commercialising indigenous technologies for the armed forces. The conference, framed around the ‘Aatmanirbharta’ (self-reliance) mandate, underscored a tectonic shift in India’s defence-industrial landscape—from decades of reliance on defence public sector undertakings (PSUs) and the Defence Research and Development Organisation (DRDO), to an open, collaborative model that actively courts small and medium enterprises.

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Notable names included AeroShield, Bajrang UAV, Clovin Security, Dronelab Technologies, Omspace Rocket, and Orbitt Space.

Neel Shrimali, Director of the Electronics & Quality Development Centre (EQDC) and Joint Technical Advisor to the Gujarat government, explicitly stated that the private sector must step up to reduce imports. He noted that the government has directed states to map and resolve startup bottlenecks, a clear signal that defence indigenisation is being operationalised at the sub-national level. The conference highlighted the Viksit Gujarat Industrial Policy 2026, which offers benefits to industries, creating a regulatory and financial incentive structure for startups willing to enter the defence fold.

A central theme of the event was the urgent need to cross the defence ‘Valley of Death’—the perilous gap between prototype development and active military supply. Air Commodore (Dr.) Jayanta Kumar Sahu (Retd.), Director of Rashtriya Raksha University (RRU), delivered a blunt directive to startups: “collaborate, don’t compete.” He argued that by dividing core expertise—such as one startup focusing on precision hardware and another on artificial intelligence or cybersecurity—the industry could build a robust, unified supply chain that is more resilient and attractive to the armed forces. This perspective directly addresses a key friction point: defence procurement demands integrated systems, and fragmented startups often lack the breadth to deliver complete solutions.

The conference’s exhibition featured 31 defence startups, spanning a wide range of next-generation capabilities. Notable names included AeroShield, Bajrang UAV, Clovin Security, Dronelab Technologies, Omspace Rocket, and Orbitt Space. This diversity—from unmanned aerial vehicles to cybersecurity and even space-rocket technologies—demonstrates that defence modernisation is no longer the preserve of large incumbent contractors. Panellists stressed that next-generation military capabilities, including AI, unmanned systems, and advanced materials, depend on the agility and innovation speed of smaller enterprises.

The implications of this conference are multifaceted. For the defence establishment, it signals that the traditional procurement paradigm, dominated by DRDO and PSUs, is being systematically dismantled. The state government’s active role—hosting, coordinating, and offering policy support—indicates that the indigenisation drive is being decentralised, potentially creating pockets of defence-industrial clusters in states like Gujarat. The presence of the EQDC, a quality development centre, also points to a focus on addressing the critical challenge of certification and testing, which has historically been a major barrier for startups.

For the startup ecosystem, the event is a double-edged sword. On one hand, the explicit invitation to enter the defence sector and the promise of supportive policies open a vast market. On the other, the advice to collaborate rather than compete implies that startups may need to form consortia or joint ventures, which can complicate equity structures and dilute control—a concern for founders and early-stage investors. Yet the government's commitment to ‘build the necessary ecosystem’ suggests that incubators, accelerators, and funding mechanisms may be expanded to mitigate such challenges.

The conference also aligns with a broader geopolitical imperative. India faces increasing border tensions and an urgent need to modernise its military. Import dependence creates vulnerabilities in supply chains during conflict or international sanctions. By fostering a domestic defence-startup ecosystem, India not only strengthens its strategic autonomy but also potentially positions itself as a defence exporter in niche technologies. The mention of space startups like Omspace Rocket and Orbitt Space indicates that the defence sector’s push for private participation is bleeding into high-tech dual-use domains, where advancements can benefit both military and civilian applications.