India – Technology Performance Digest

Executive Summary

India’s dual-use technology sector has witnessed significant momentum as of mid-2025, driven by a confluence of public policy support, a vibrant startup ecosystem, and growing demand from both civilian and defence sectors. This report examines India’s performance and trajectory in seven key dual-use technologies—artificial-intelligence, biometric-authentication-systems, internet-of-things-iot, predictive-maintenance, quantum-key-distribution, sensors, and wearable-health-tech—through the lens of leading domestic organisations: Infinite Uptime, OTPless, Pixxel, QNu Labs, Sarvam AI, Ultrahuman, and Zypp Electric.

India’s strengths lie in its cost-effective innovation, robust talent pool, and increasing integration of indigenous solutions into critical infrastructure and defence. However, challenges remain in scaling, deeptech R&D, and bridging the gap between commercial and military-grade requirements. Strategic investments, public-private partnerships, and international collaborations are shaping the current landscape, with notable advancements in quantum security, AI, and IoT-enabled platforms.

Looking ahead, India is poised to consolidate its position as a leading provider of dual-use technologies, particularly in the Indo-Pacific region, provided it addresses key weaknesses and leverages opportunities for collaboration and export.

Strengths

Robust Startup Ecosystem

India’s technology landscape is underpinned by a dynamic startup ecosystem. Organisations such as Infinite Uptime (predictive-maintenance, industrial IoT), OTPless (biometric-authentication-systems), Pixxel (space-based sensors), QNu Labs (quantum-key-distribution), Sarvam AI (AI platforms), Ultrahuman (wearable-health-tech), and Zypp Electric (IoT-enabled logistics) exemplify the diversity and depth of innovation.

• Artificial-intelligence: India has become a global hub for AI talent, with Sarvam AI leading in large language models and domain-specific AI solutions. The country’s AI research output is among the world’s fastest-growing, and adoption is accelerating in defence, healthcare, and logistics.
• Biometric-authentication-systems: Building on the Aadhaar infrastructure, startups like OTPless have developed advanced, privacy-centric biometric authentication solutions, increasingly used in fintech, government, and security.
• Internet-of-things-iot: India’s IoT sector is robust, with applications in smart cities, logistics, and industrial automation. Infinite Uptime and Zypp Electric are leveraging IoT for predictive-maintenance and fleet management, respectively.
• Predictive-maintenance: Infinite Uptime’s sensor-driven analytics platforms are deployed in manufacturing and critical infrastructure, reducing downtime and enhancing operational resilience.
• Quantum-key-distribution: QNu Labs is a pioneer in commercial quantum cryptography in India, providing quantum-safe encryption solutions for defence and financial sectors.
• Sensors: Indigenous sensor development, exemplified by Pixxel’s hyperspectral imaging satellites, is enabling new capabilities in earth observation, agriculture, and surveillance.
• Wearable-health-tech: Ultrahuman is at the forefront of health monitoring wearables, integrating biosensors and AI for real-time health analytics, with applications in both civilian and military domains.

Policy Support and Talent

• The Indian government’s focus on self-reliance (Atmanirbhar Bharat) and the Defence Acquisition Procedure (DAP) 2020 have incentivised indigenous dual-use tech development.
• India boasts a large pool of STEM graduates and world-class institutes (IITs, IISc), supporting R&D and talent supply.

Cost-effective Innovation

• Indian firms excel in frugal innovation, delivering high-impact solutions at lower costs compared to Western counterparts, making them attractive for both domestic and emerging markets.

Weaknesses

Scale and Deeptech R&D Gaps

• While startups like QNu Labs and Pixxel are innovating, India’s deeptech ecosystem still lags behind the US, China, and Israel in terms of scale, venture funding, and advanced R&D infrastructure.
• Technology readiness levels (TRLs) for many indigenous solutions remain below those required for mission-critical defence applications.

Supply Chain and Manufacturing Constraints

• Dependence on imported components (especially semiconductors and advanced sensors) persists, limiting self-sufficiency.
• Domestic manufacturing capacity for high-reliability, defence-grade sensors and quantum devices is limited.

Data Privacy and Regulatory Hurdles

• Regulatory ambiguity around data privacy, especially in AI and biometric-authentication-systems, can slow adoption and international collaboration.
• Export controls and dual-use technology regulations are still evolving, creating uncertainty for startups seeking to scale globally.

Integration with Legacy Systems

• Defence and critical infrastructure often rely on legacy platforms, making integration of new dual-use technologies complex and costly.

Notable Programmes & Investments

Government Initiatives

• Defence Innovation Organisation (DIO) & iDEX: Funding and incubation for dual-use startups, including grants to QNu Labs and Pixxel for quantum and space-based surveillance.
• National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS): Supports research in AI, IoT, and sensors, with testbeds for military and civilian applications.
• Digital India & National AI Mission: Policy frameworks and funding to accelerate AI and IoT adoption.

Corporate and Venture Investments

• Infinite Uptime and Ultrahuman have attracted significant Series B and C funding rounds, enabling scaling of predictive-maintenance and wearable-health-tech platforms.
• Zypp Electric has secured strategic investments from logistics majors to expand its IoT-enabled electric fleet for last-mile delivery, with potential defence logistics applications.
• Pixxel’s partnerships with ISRO and international space agencies have enabled launch and deployment of hyperspectral satellites, enhancing India’s remote sensing capabilities.

Defence Sector Pilots

• Indian armed forces are piloting QNu Labs’ quantum-key-distribution for secure battlefield communications.
• Ultrahuman’s wearables are being trialled for soldier health monitoring in extreme environments.
• Infinite Uptime’s predictive-maintenance solutions are being integrated into critical defence manufacturing facilities.

Competitive Comparison

United States

• The US maintains a clear lead in advanced AI, quantum, and sensor technologies, supported by massive federal R&D budgets and mature defence-industrial partnerships.
• Indian startups are competitive in cost and frugal innovation but lag in deeptech IP and scale.

China

• China’s state-led model has enabled rapid scaling in AI, IoT, and quantum communications. India’s open innovation ecosystem is more agile but less coordinated at the national level.
• In quantum-key-distribution, QNu Labs is a regional leader but trails Chinese giants in deployment scale.

Israel

• Israel’s dual-use tech sector is highly integrated with its defence establishment, leading to rapid commercialisation of military-grade solutions.
• Indian firms are catching up in AI and IoT but lack Israel’s seamless defence-to-civilian tech transfer mechanisms.

Europe

• Europe excels in privacy-centric AI, biometric-authentication-systems, and sensors. Indian startups like OTPless are competitive in software but face regulatory barriers in accessing European markets.

Opportunities for Collaboration / Export

Indo-Pacific Partnerships

• India’s strategic partnerships with Australia, Japan, and ASEAN offer export and co-development opportunities, particularly in AI, IoT, and quantum security.
• Pixxel’s satellite data services and QNu Labs’ quantum encryption solutions are well-positioned for regional security and infrastructure projects.

Defence Exports

• The Defence Export Promotion Policy (2020) and recent relaxations in export licensing create new avenues for dual-use tech exports.
• Infinite Uptime’s predictive-maintenance and Ultrahuman’s health wearables have potential for deployment in allied militaries.

Technology Co-development

• Joint R&D with US, EU, and Israeli firms can accelerate technology readiness, particularly in quantum-key-distribution and advanced sensors.
• Participation in global standards bodies (e.g., for biometric-authentication-systems, IoT security) can enhance interoperability and exportability.

Civilian-Military Integration

• Dual-use platforms developed for commercial logistics (e.g., Zypp Electric’s IoT fleet management) can be adapted for military supply chains and disaster response.

Risks & Mitigation

Cybersecurity and Espionage

• Increased deployment of AI, IoT, and quantum technologies raises the risk of cyberattacks and espionage.
• Mitigation: Strengthen cybersecurity standards, invest in indigenous cryptography (e.g., QNu Labs), and implement supply chain vetting for critical components.

Technology Leakage

• Dual-use technologies are vulnerable to reverse engineering and proliferation.
• Mitigation: Robust export controls, IP protection, and secure development lifecycles.

Regulatory and Geopolitical Risks

• Evolving export control regimes (e.g., Wassenaar Arrangement) and geopolitical tensions may restrict access to critical components or markets.
• Mitigation: Diversify supply chains, develop indigenous alternatives, and engage in multilateral tech diplomacy.

Talent Retention

• Brain drain and competition from global tech giants threaten the domestic talent pool.
• Mitigation: Incentivise domestic R&D, enhance industry-academia linkages, and create pathways for returnee talent.

Outlook (5-year)

India’s dual-use technology sector is on a strong upward trajectory. By 2030, the country is expected to:

• Artificial-intelligence: Achieve global leadership in domain-specific AI (e.g., language, logistics, health), with Sarvam AI and others scaling to international markets.
• Biometric-authentication-systems: Expand adoption in critical infrastructure and cross-border security, with Indian solutions like OTPless setting regional standards.
• Internet-of-things-iot: See widespread deployment in smart cities, defence logistics, and industrial automation, driven by startups like Infinite Uptime and Zypp Electric.
• Predictive-maintenance: Become a standard in manufacturing and defence, reducing costs and enhancing resilience.
• Quantum-key-distribution: Move from pilot to operational deployment in defence and financial sectors, with QNu Labs at the forefront.
• Sensors: Indigenous development will accelerate, with Pixxel expanding its satellite constellation and domestic sensor manufacturing capacity increasing.
• Wearable-health-tech: Integration into military and emergency response will mature, with Ultrahuman and others exporting to allied nations.

Key enablers will include continued government support, increased venture and strategic investment, and active participation in global technology standards. Risks—including regulatory uncertainty, supply chain vulnerabilities, and talent retention—will need ongoing management.

Conclusion: India is well-placed to emerge as a leading provider and exporter of dual-use technologies, particularly in the Indo-Pacific. Success will depend on scaling deeptech innovation, strengthening regulatory frameworks, and fostering international collaboration. The next five years will be critical in consolidating these gains and positioning India as a global technology power.