From AI To Defence Tech, PM Narendra Modi Pitches For Tech Autonomy

Self-reliance and innovation was the key theme of Prime Minister Narendra Modi’s address to the nation on its 79th Independence Day.

“Dependence on others raises questions about a nation’s independence. It is unfortunate when dependence becomes a habit, a dangerous one. That’s why we must remain aware and committed to becoming self-reliant. Self-reliance is not just about exports, imports, the rupee, or the dollar. It is about our capabilities, our strength to stand on our own,” the PM said from the ramparts of the Red Fort.

From cybersecurity, AI and operating systems to defence tech, deeptech and pharmaceuticals, Modi called on the country’s youth to double down on innovation to make the nation self-reliant when it comes to technology.

The PM’s address today came a few months after India’s military conflict with Pakistan post the terrorist attack in Jammu and Kashmir’s Pahalgam. It also came in the backdrop of the US imposing a 25% import tariff on Indian goods and announcing another 25% tariff which would come into effect near the end of August.

It is pertinent to mention that the country’s startup ecosystem will have to play a key role to attain the PM’s goal of tech autonomy for India. The country is currently home to around 1.9 Lakh startups across sectors like deeptech, fintech, ecommerce, AI, and many more.

To reduce the compliance burden for startups and MSMEs, PM Modi announced the formation of a task force to bring in next-generation reforms. The taskforce will evaluate current laws, rules, and procedures related to economic activities. It will work with a set timeline to attain the following objectives:

— Reduce compliance costs for startups, MSMEs, and entrepreneurs

— Provide freedom from fear of arbitrary legal actions

— Ensure laws are streamlined for ease of doing business

Moving on, let’s take a look at the key announcements made by PM Modi today.

“Made In India” Chip To Be Rolled Out This Year

First on the list of PM’s iterations during his speech today was pushing for sovereignty in semiconductors. Emphasising that India is working on a mission mode in the area, Modi said that the first “Made in India” chips will be rolled out by the end of 2025.

Notably, electronics and IT minister Ashwini Vaishnaw had announced this in January while addressing the World Economic Forum in Switzerland. “Now we are looking at the next phase, where we can get equipment manufacturers, material manufacturers and designers in India,” the minister had said.

Earlier this week, the Union cabinet also cleared four new semiconductor projects with a total investment of INR 4,584 Cr under the India Semiconductor Mission (ISM). With this, the cumulative investment for the projects under ISM has increased to around INR 1.60 Lakh Cr across 10 projects.

At the heart of all this is the homegrown semiconductor market which, as per Inc42, is expected to become a $150 Bn opportunity by 2030.

Self-Reliance For Critical Minerals

“From industry, defence to every aspect of tech, self-reliance for critical minerals has become more imperative for India today,” the PM said.

Modi said that under the recently launched National Critical Mineral Mission, the Geological Survey of India (GSI) is exploring 1,200 sites to ensure access to minerals for energy, defence and industry.

This is important as China, amid the ongoing tariff wars in the world, banned exports of rare earth metals, including magnets and metals like samarium, gadolinium and terbium. These minerals find usage in EVs, wind turbines and other electronic devices.

To address this issue, the heavy industries ministry is working on a subsidy scheme to support domestic production of rare earth magnets.

“This inter-ministerial effort (between MHI, steel ministry, mines ministry, commerce and industry ministry) will pave the way for India’s self-reliance in strategic materials crucial for EVs, electronics, defence and other sectors,” heavy industries minister HD Kumaraswamy said in June.

Space Tech Push

PM Modi yet again highlighted the prowess of Indian startups in the space tech sector. He said that over 300 homegrown startups are actively innovating in satellites, exploration, and cutting-edge space technologies, ensuring that India is not just participating but leading globally in space science and exploration.

He also said that the country has begun preparations to set up its own space station. Notably, India plans to set up its space station, Bharatiya Antriksh Station, by 2035.

As part of the push to promote private entities in the space sector, the Indian National Space Promotion and Authorisation Centre (IN-SPACe), earlier this week, selected a consortium of four homegrown spacetech startups to helm a project to design, build and operate India’s first fully indigenous commercial Earth Observation satellite system.

The consortium, which will be led by hyperspectral imaging startup Pixxel, also comprises maritime surveillance platform PierSight Space, geospatial data analytics startup SatSure Analytics and space infrastructure venture Dhruva Space.

To fuel India’s spacetech ambitions, the Union cabinet also approved setting up a INR 1,000 VC fund in October last year.

The initiatives align with the Centre’s ambitious plan of making the Indian space economya $44 Bn market by 2033 from $8.4 Bn in 2022. The government also aims to expand India’s share in the global space economy to 8-10% by 2040.

Need For Indigeneous Fighter Jet Engines

In line with the government’s recent defence tech push, Modi called on the youth, private organisations and scientists to develop jet engines within India to ensure that defence technology is entirely homegrown.

Modi said that Operation Sindoor demonstrated India’s homegrown defence capabilities. He highlighted that indigenous capabilities, including Made-in-India weapons, help the country act decisively and independently. The PM said that national security cannot rely on foreign dependence.

Notably, earlier this year, the Centre said that the Drone Federation India (DFI) and companies like IG Drones, Paras Defence & Space Technologies, Tata Advanced Systems, and Alpha Design Technologies played a key role in Operation Sindoor.

According to Inc42’s latest report — India’s Defence Tech Startup Ecosystem Report 2025 — the country’s defence tech market is projected to grow from $7.6 Bn in 2025 to $19 Bn by 2030, clocking a CAGR of 20%.

Almost half of the projected market value of around $19 Bn is expected to be driven by advanced technologies such as AI, autonomous systems, quantum computing, and next-generation radar and surveillance platforms.

(Edited by: Vinaykumar Rai)

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