Seven Indian startups have been chosen for a groundbreaking India-US space and defence collaboration program, which will open up strategic markets for Indian firms, according to an investor co-launching the project and spoke to Reuters on Friday.
Companies like space imaging firm KaleidEO, rocket manufacturer EtherealX, and AI-driven Shyam VNL will participate in this defence and dual-use technology program. They aim to collaborate with the U.S. Defense Innovation Unit, the Department of Defense, and other agencies on satellite observation and emerging technologies.
Indusbridge Ventures in India and FedTech from the US launched this program in September 2024 and have chosen these companies, actively engaging in discussions about specific projects underway.
“This program provides invaluable resources, mentorship, and crucial industry connections in the U.S.,” said Rahul Devjani, managing partner at Indusbridge Ventures. “We are excited to collaborate with FedTech to boost private-sector partnerships between the two nations in critical sectors like defence and dual-use technology.”
The participating startups will gain access to the world’s largest defence and space market, potentially collaborating with top U.S. defence firms such as Northrop Grumman, Lockheed Martin, and RTX, two sources from the startups said, preferring anonymity due to the sensitive nature of the information.
According to one source, this opportunity could give them a competitive edge as they compete for U.S. business in a market valued at approximately $1.5 billion annually.
While the U.S. government has not commented yet, details of the previously unpublicized program have started to emerge. Representatives from Lockheed and Northrop declined to comment, and RTX has not responded to inquiries.
Another source indicated that the potential for accessing the U.S. defence and space markets could generate annual revenues of $500 million to $1 billion for these Indian firms.
In January 2025, Indian National Security Advisor Ajit Doval met with his U.S. counterpart Jake Sullivan in New Delhi to discuss their collaboration. They aimed to strengthen the partnership between the U.S. Defense Innovation Unit and India’s Innovations for Defense Excellence to promote the use of advanced commercial technologies for military purposes.
