India’s defence technology market is on the cusp of a major expansion, projected to grow from $7.6 billion in 2025 to nearly $19 billion by 2030, according to a new industry report released on Tuesday by staffing and workforce solutions provider Quess Corp. The sector is expected to clock a compound annual growth rate (CAGR) of around 20 per cent, driven by rapid advances in digital engineering, artificial intelligence and autonomous systems.
The report highlights a major transformation underway in India’s military modernisation—technology-led systems are expected to form almost half of the country’s total defence market by 2030, signalling a shift away from traditional platform-centric development. This transition aligns with the government’s push for indigenised, next-generation systems capable of integrating advanced sensors, software-defined capabilities and data-driven mission execution.
Quess Corp’s analysis shows strong momentum across a wide spectrum of emerging technologies, including computer vision, autonomous platforms, counter-drone systems, underwater robotics, directed-energy research, advanced sensing, and software-led mission systems. Much of this growth is being propelled by India’s vibrant innovation ecosystem, which now includes over 1,000 defence-tech startups and 194 firms connected through government-backed R&D and innovation programmes.
However, the report also issues a strong warning: critical skill shortages threaten to become the single biggest bottleneck in India’s defence modernisation drive. Specialised engineering roles—including radar and RF engineering, avionics, propulsion, optical engineering, quantum communications, systems integration, and testing and certification—account for less than 5 per cent of today’s defence workforce.
Such shortages pose significant risks for major programmes such as the development of next-generation aircraft, unmanned systems, underwater platforms, and secure communications networks. Without urgent intervention, the report notes, these gaps could slow production timelines, reduce deployment readiness, and undermine India’s export competitiveness.
One of the clearest indicators of India’s shifting priorities is the explosive rise of counter-drone technologies. The report finds that 71 per cent of all defence-tech startup funding is currently channelled into counter-drone solutions, making it the fastest-growing segment within India’s defence innovation landscape. This segment alone is expected to grow at a 17 per cent CAGR, reaching $1.4 billion by 2029—a reflection of rising drone threats along the border and increasing demand from military and homeland security agencies.
“The next five years are decisive,” said Kapil Joshi, CEO – IT Staffing at Quess Corp, emphasising the urgency of workforce development. “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.”
The report predicts that roles related to certification, safety engineering, testing and validation will see the sharpest increase in demand over the next five years. Yet without targeted skilling programmes, 40–45 per cent of these highly specialised roles may remain unfilled by 2030, creating constraints across production, deployment and quality assurance.
As India accelerates its push for indigenous defence capabilities and seeks to expand its global footprint as a defence exporter, the need to build a future-ready, technologically advanced workforce has never been more critical. The report concludes that India’s ability to meet its defence ambitions will depend as much on talent and engineering depth as on capital investment and innovation.
