Need 100K startups, shorter acquisition cycles in defence: Rajinder Bhatia

Rajinder Singh Bhatia, head of Kalyani Group’s defence business, on Saturday stressed the need to build an ecosystem capable of supporting the growth of hundreds of thousands of startups.

In a discussion with Business Standard's Special Correspondent Bhaswar Kumar at the launch event of the defence magazine The Blueprint Discourse, Bhatia also highlighted the importance of integrating new technologies into the defence sector and streamlining acquisition cycles.

Bhatia stressed the need to build an ecosystem that can support a much larger number of startups in India. “India currently has around 157,000 registered startups, of which 33,000 are tech-focused and only 9,000 operate in defence. Of these, successful ones can be counted on fingers. Compared to a country like Israel, our per capita numbers are far lower," he said.

Stating the need for many more startups, Bhatia questioned, "Why stop at a few thousand when we can aim for 100,000?”

He added that we must ensure the ecosystem supports the creation and growth of startups at scale. "Let’s aim for 100,000 startups across defence, aerospace, and technology. India has the talent; now we need the structures to unleash it,” he said.

Bhatia stressed that reforms must focus on shortening acquisition cycles to match rapid technological changes. “If a product can be developed in 2-5 years, the acquisition cycle cannot be longer than that. Otherwise, you end up procuring outdated equipment,” he said.

He pointed to international examples such as South Korea and Israel, which manage defence acquisitions much faster, and urged India to adopt similar models. “For technologies changing quickly, a timeline of 18-24 months is ideal. Other projects can have longer timelines, but efficiency is key. Faster cycles will accelerate industry investment and allow better utilisation of budgets,” he added.

Bhatia described the defence sector’s transformation as an ongoing journey. “The future will continue to evolve. We must keep adapting and moving forward,” he said.

“Technology will change faster than you can imagine,” Bhatia said. “Future warfare will be based on technology, and it will touch every part of your life. What’s interesting is that much of this technology will now be developed in the civilian domain and then flow into military applications,” he added. 

Bhatia also praised India’s talent. “Indian engineers are brilliant. They have built ecosystems around the world. Today, every major global original equipment manufacturer (OEM) has a Global Capability Centre in India. We have the capability; what we need is scale.” 

He called for expanding technology development across the country: “Let there be a million startups, not just a thousand. If India spreads out innovation in defence and aerospace, all facets of future development will thrive. The private sector, the talent pool, and civilian innovations together will define the next era of defence technology.”

Bhatia emphasised that creating a robust ecosystem is key to turning ideas into viable products. “In any technological innovation, there are four critical stages: developing the idea, building a prototype, scaling it with market or industry support, and finally assimilating it into a technological product. Most startups stall at stage two or three because funding and mentorship run out. The role of policy and industry is not to remove obstacles entirely, but to guide startups through these stages.”

Highlighting the progress made so far, he said, “In 2018-19, there were barely 10 startups in India. Today, 3,000 are registered under certain schemes, and 1,100 have already received orders. But these numbers are still insufficient for a country of India’s scale and ambition.”

On broader defence acquisitions, Bhatia described building India’s defence capability as “a marathon, not a sprint.” He said while significant progress has been made over the last decade, the nation still has a long way to go. “We have crossed the halfway mark, but the journey continues,” he said.

Citing the example of his own company, which was relatively small 12 years ago, but has quadrupled production in recent years, Bhatia said, “India of 2025 is much stronger, both technically and in manufacturing. If the US could achieve large-scale production decades ago, we can too,” he concluded.