Budget 2026: Higher defence capex could open new runway for drone and aerospace startups
India’s defence tech startup ecosystem is entering a pivotal phase as Budget 2026 approaches, with expectations of a sharp rise in defence capital expenditure and possible policy reforms. With funding crossing $711 million and investment increasingly concentrating in execution-ready firms, higher government spending and potential FDI liberalisation could accelerate the shift from innovation to large-scale defence manufacturing.