India's Defence Tech Funding Soars to Unprecedented Heights in 2025

In 2025, India's defence technology sector saw a landmark financial year, securing USD 247 million in capital, as reported by Tracxn. This marks a shift towards infrastructure-like investments, with substantial funding focused on non-combat systems. The sector's cumulative funding reached USD 711 million, with Bengaluru as the leading hub.

In a record-breaking stride for India's defence technology sector, 2025 witnessed an unprecedented influx of capital, totaling USD 247 million, as revealed by Tracxn's comprehensive report.

This significant financial breakthrough signals a pivotal shift in the sector, moving away from exploratory investments towards infrastructure-style commitments. Notably, substantial funding was concentrated in non-combat systems, marking them as the preferred choice among investors.

Bengaluru emerged as the frontrunner, attracting USD 216 million across various rounds, solidifying its status as the leading hub in this burgeoning landscape. The defence tech sector's evolution underscores its increasing role as a critical component of national infrastructure, merging military readiness with long-term economic potential.

(With inputs from agencies.)