India, once primarily perceived as a developing nation with an agrarian economy, is steadily reshaping its identity as a significant technology player on the world stage. This transformation has not occurred by chance—it reflects years of focused efforts in building digital infrastructure, supporting innovation, and nurturing both the startup ecosystem and strategic sectors like defence tech. In the 21st century, India finds itself at a crucial point where tradition intersects with transformation, as technology begins to redefine not just the economy, but governance, security, and foreign policy.
In the late 20th century, India was often associated with a ‘brain drain’ phenomenon, where many of its brightest minds left the country to contribute to foreign technological advancements, particularly in the United States and Europe. However, the turn of the millennium marked a shift. With the launch of the National Innovation Foundation in 2000, under Department of Science and Technology under Government of India, followed by a slew of government-led policies such as Startup India (2016) managed by Department for Promotion of Industry and Internal Trade (DPIIT), Atal Innovation Mission (AIM) (2016), and Digital India (2015), India laid the groundwork for reversing the exodus of talent and creating opportunities at home.
India’s climb to 39th place in the Global Innovation Index 2025—up from 81st in 2015—is an indication of this evolving landscape. Today, India is home to more than 122 unicorns across domains including fintech, edtech, agritech, and defence, making it the world’s third-largest startup ecosystem. Cities like Bengaluru, Hyderabad, and Pune have emerged as global tech hubs, attracting foreign investment and nurturing indigenous talent.
Digital Infrastructure as an Enabler
India’s technological rise has been built on the back of a wide-reaching digital infrastructure. The Aadhaar biometric identity programme, which now includes over 1.3 billion citizens, stands as the world’s largest digital ID system. Equally transformative has been the Unified Payments Interface (UPI), developed by the National Payments Corporation of India (NPCI), which has changed the landscape of digital transactions. In June 2024 alone, UPI saw over 13.89 billion transactions—comparable to or exceeding those in many developed economies.
Beyond fintech, initiatives such as PM Gati Shakti, Bharat Net, and the National AI Mission have created integrated platforms for logistics, rural broadband connectivity, and artificial intelligence development. The introduction of 5G in 2022, now rapidly expanding across rural and urban landscapes, is enabling next-gen applications in areas like telemedicine, education, and industrial automation.
Emerging Technologies: A Growing Footprint
India is making major strides in strategic and emerging technologies. The establishment of the India AI Mission in 2024, backed by ₹10,300 crore, reflects a comprehensive approach to building national capabilities in AI—from research and infrastructure to startups and public use cases.
The Semiconductor Mission, launched in 2021 and re-energised in 2024 through new incentives, aims to reduce import dependency by developing domestic chip manufacturing. Partnerships with firms like Micron, Applied Materials, and Tata Electronics are beginning to yield tangible results in Gujarat and Tamil Nadu with the creation of chip manufacturing and testing facilities.
Meanwhile, the Indian Space Research Organisation (ISRO) has continued to elevate India’s global prestige. From Chandrayaan-3’s successful lunar landing in 2023 to Gaganyaan’s upcoming manned space mission, India is entering the elite club of spacefaring nations with indigenous capabilities.
Modernising Defence Through Indigenous Innovation
One of the most significant illustrations of India’s emergence as a technology powerhouse is the transformation of its defence sector. As threats evolve into hybrid and asymmetric domains, ranging from cyber warfare to drone attacks, the Indian Armed Forces are rapidly modernising with indigenous tech solutions.
The Defence Acquisition Procedure (DAP) 2020 gives clear priority to the ‘Make in India’ initiative, notably through the iDEX (Innovations for Defence Excellence) platform. iDEX has already onboarded over 300 startups, many of which have delivered operational prototypes such as loitering munitions, unmanned ground vehicles, wearable tech for soldiers, and AI-driven surveillance systems.
As threats evolve into hybrid and asymmetric domains, ranging from cyber warfare to drone attacks, the Indian Armed Forces are rapidly modernising with indigenous tech solutions
In 2024, India inducted its first indigenous swarm drone system developed by a private startup, capable of real-time coordination for surveillance, targeting, and attack operations. The Indian Army has also operationalised AI-based facial recognition systems on its Northern borders and predictive maintenance solutions using big data analytics for armoured vehicles.
The Indian Navy is deploying indigenous autonomous underwater vehicles (AUVs) for coastal and maritime surveillance. The recently launched INS Imphal, a stealth destroyer, is equipped with combat management systems developed indigenously, demonstrating the growing synergy between Indian software prowess and hard military assets.
The Indian Air Force, too, has embraced AI-powered systems for simulation training, radar data analytics, and unmanned aerial vehicle (UAV) combat support. The Light Combat Aircraft Tejas and the upcoming AMCA (Advanced Medium Combat Aircraft) project are hallmarks of India’s capability to design, test, and manufacture cutting-edge platforms with homegrown avionics and weapon systems.
Cybersecurity and the Pursuit of Digital Sovereignty
As India grows digitally, the risk surface for cyber threats expands proportionally. Recognizing this, the Government of India established the National Cyber Coordination Centre (NCCC), and in 2023 launched the Digital Personal Data Protection Act, 2023. This legislation focuses on data privacy, platform accountability, and digital rights while enabling innovation.
In the wake of global geopolitical shifts, cyber warfare has become a new frontier. India has responded with a strategic focus on cyber defence and offensive capabilities. The Defence Cyber Agency (DCyA), operational since 2019, is working in tandem with private players to build tools for malware analysis, secure communications, and threat intelligence.
India’s commitment to digital sovereignty also manifests through its efforts to create indigenous alternatives to foreign technologies. From secure operating systems (OS) for defence use to homegrown GPS alternatives like Navigation with Indian Constellation (NavIC), India is creating technology stacks that reduce foreign dependence and enhance national control over critical infrastructure.
Public-Private Partnerships: A Catalyst for Innovation
A defining feature of India’s innovation journey is the increasing collaboration between the public sector and private entrepreneurs. Government initiatives such as the Production Linked Incentive (PLI) scheme for electronics and telecom, SPARK for defence innovation, and SAMARTH for Industry 4.0 integration in MSMEs have encouraged a broad base of entrepreneurial activity.
India’s tech unicorns like Zoho, Razorpay, and MapmyIndia, alongside deep-tech startups like IdeaForge (drones), Tonbo Imaging (optronics), and New Space Research (defence tech), are not only solving domestic challenges but exporting solutions globally. This convergence of government policy, industry support, academic research, and startup energy has created a dynamic innovation environment.
Bridging the rural-urban digital divide, ensuring ethical AI development, protecting against data colonialism, and nurturing Tier-II city innovation ecosystems are priorities that need sustained attention
Strategic Leverage on the Global Stage
India’s rise has also transformed its diplomatic posture. Digital diplomacy, technological aid, and global collaboration have become cornerstones of India’s foreign policy. India’s leadership in the Global Partnership on Artificial Intelligence (GPAI), partnerships with the Quad on critical technologies, and digital public infrastructure sharing with countries in Africa and Southeast Asia are reshaping its global identity.
The India Stack, a suite of open APIs for identity, payments, and data management is being adopted by other countries seeking inclusive digital models. In 2024, Mauritius and Sri Lanka became the latest to sign agreements to adopt portions of the India Stack, showcasing India’s soft power through digital architecture.
Looking Ahead: Promise with Challenges
Despite impressive strides, challenges remain. Bridging the rural-urban digital divide, ensuring ethical AI development, protecting against data colonialism, and nurturing Tier-II city innovation ecosystems are priorities that need sustained attention.
The upcoming National Robotics Mission, Green Hydrogen Tech Mission, and the National Quantum Mission promise to keep India ahead of the curve in next-gen technology sectors. However, innovation must also be inclusive. Efforts to improve gender diversity in STEM, simplify patent laws for grassroots inventors, and integrate tribal and rural knowledge systems into mainstream science will be crucial.
India’s journey from a service-based outsourcing destination to a product and innovation-driven economy is well underway. With youth as its greatest asset over 60 per cent of India’s population is under the age of 35, the demographic dividend, when matched with digital empowerment, can propel India into the top tier of global innovation leaders.
Takeaways
As India marks 78 years of independence in 2025, its evolving role as a knowledge-based, tech-forward nation is beginning to take shape. From enabling financial inclusion through UPI to enhancing military capabilities with AI and drones, India’s story is increasingly defined by its ability to leverage technology for transformative change.
Innovation is not just about invention; it is about intent, infrastructure, and implementation. India’s model, rooted in democratic values, open-source frameworks, and inclusive growth, offers an alternative vision to state-controlled tech hegemonies. The country offers a distinct model in a world where technology is increasingly central to economic power and geopolitical influence. With a youthful population and growing digital access, India has the opportunity—not just to catch up—but to lead in shaping the technology-driven future.
The writer is a legal academic with a PhD in Law, working at the intersection of gender justice, public policy, and national security. She is presently serving as Assistant Professor (Grade II) in Law at Amity University, Noida. Her writings aim to integrate inclusive governance with strategic policymaking. She regularly writes on national defence, internal threats, and gendered dimensions of security. She can be reached at sunandini.arun@gmail.com. The views expressed are personal and do not necessarily carry the views of Raksha Anirveda
Akash Desai is an innovation and startup ecosystem enabler with over eight years of experience spanning startups, education, and policy. He has advised government bodies and mentored MSMEs, fostering collaboration between academia, industry, and startups. Formerly Project Director and Acting CEO of SASTRA-RRU, he led key national security startup initiatives. He now serves as Senior Manager at DCEI, Dhirubhai Ambani University, Gandhinagar, driving research-led innovation and venture incubation.
