India’s push to integrate artificial intelligence into its defence ecosystem is gathering pace.

Startups, including Sarvam AI, are in discussions with the Ministry of Defence to establish a ₹300 crore Centre of Excellence (CoE) for defence AI applications. The proposed initiative aims to strengthen indigenous capabilities, support military use cases and reduce reliance on foreign technologies.

Also Read: Why Is Everyone Talking About OpenAI’s Images 2.0 Model?

Government-Startups Explore Defence AI Collaboration

Progress is in its early stages, but there is growing alignment between the government and the private sector on defence innovation. The proposed CoE is expected to bring together startups, research institutions, and defence stakeholders under one framework.

Sources indicate the centre will focus on building AI-driven tools for surveillance, intelligence gathering and operational efficiency. It will also act as a testing ground for new technologies tailored for defence needs.

The move aligns with India’s broader strategy to promote homegrown innovation in critical sectors. Startups are increasingly being seen as key contributors to defence modernisation.

Also Read: India to Tighten AI Labelling Rules for Social Media Amid Compliance

Focus on Indigenous Capability and Strategic Tech

The proposed investment reflects a shift towards self-reliance in defence technology. Officials are planning to reduce dependence on imports and build domestic systems.

The CoE is likely to support the development, prototyping, and deployment of AI solutions across defence services. It may also help create a pipeline of skilled talent in defence-focused artificial intelligence.

Industry observers say such collaborations could accelerate innovation cycles and improve deployment timelines. However, execution and coordination between multiple stakeholders will remain important.