Venture capitalists urged to back defence startups: NITI Aayog member

NITI Aayog member and former DRDO Director General V K Saraswat on Sunday called on venture capitalists to significantly increase financial support for Indian defence startups, saying they have matured and are ready to scale up with the right backing.

Speaking on the sidelines of the Advantage Vidarbha–2026 Business Conclave and Investment Summit, Saraswat said defence startups have benefited from supportive government policies, but private investment has not kept pace with their growth potential. He stressed that venture capital participation is crucial to help these firms move from innovation to large-scale production.

Commenting on India’s defence partnerships, Saraswat said the country’s approach is guided by its own security and technological requirements, not by choosing between global partners. He underlined that India will continue strengthening defence ties based on national interests.

Referring to the robust defence allocation in the 2026–27 Union Budget, Saraswat said the focus has clearly shifted towards large-scale production, indigenisation and greater private sector participation.  The defence budget for 2026–27 stands at Rs 7.85 lakh crore, compared to Rs 6.81 lakh crore last year. Of this, Rs 2,19,306 crore has been allocated for capital expenditure, primarily for procurement of new weapons, aircraft, warships and military equipment.