Artificial Intelligence (AI) in Indian Defence

By R Anil Kumar 

• AI adoption by Indian defence companies is transforming the nation’s military capabilities. From PSUs like BEL and HAL to private innovators such as Zen Technologies and Paras Defence, these listed companies are driving self-reliance and ensuring India’s preparedness for future warfare

• AI is being integrated into command, control, communication, computer, intelligence, surveillance, and reconnaissance (C2ISR) operations. For example, AI-driven surveillance has been deployed for border security, with approximately 140 smart surveillance systems at India’s border

• The integration of AI not only boosts national security but also opens significant opportunities for investors

Bengaluru. Artificial Intelligence (AI) is rapidly redefining global defence, and India is emerging as an important player in the military-tech race. Under the Atmanirbhar Bharat vision and the iDEX (Innovation for Defence Excellence) framework, Indian defence companies—both state-owned and private—are embedding AI across surveillance, combat systems, and aerospace platforms.

From enabling autonomous drone swarms to predictive maintenance of fighter jets, AI is not just enhancing efficiency but reshaping the way India prepares for future warfare.

Bharat Electronics Limited (BEL) is leading state-run AI innovation with its AI Incubation Centre in partnership with the Indian Army.

BEL has rolled out pioneering solutions such as AI-enabled Voice Analysis Software (AIVAS) for speech transcription and monitoring, Sandarbh.AI for intelligent document management in the Navy, and predictive maintenance solutions for fire control systems.

Hindustan Aeronautics Limited (HAL) has been embedding AI into aerospace platforms, highlighted by the Combat Air Teaming System (CATS) where AI enables UAV wingmen to follow commands from manned fighters, an AI-based Snag Disposition System for automated fault detection, and AI-driven maintenance practices for aircraft part tracking.

Private players are equally aggressive in leveraging AI. Data Patterns integrates AI into radar and avionics systems, enhancing object detection and surveillance for both defence and space applications. Zen Technologies has emerged as a specialist in AI-powered counter-drone systems, applying machine learning to detect, track, and neutralize UAV threats, while simultaneously embedding AI into battlefield simulation platforms for realistic training.

Paras Defence has expanded through its investment in Logic Fruit Technologies, while also launching PARAS.AI for analysing drone data feeds and advancing AI-powered radar and electronic warfare systems. MTAR Technologies, known for high-precision defence components, is applying AI across manufacturing and quality control for faster, defect-free aerospace production.

Emerging firms are adding momentum to this AI-driven wave. Solar Industries has fielded its Bhargavastra AI-enabled counter-UAV system, alongside experimentation with AI-powered smart mines and drone payloads. DCX Systems is focusing on AI in electronic warfare and surveillance, while Avantel Limited is developing AI-based enhancements for satellite communications and next-generation radios.

The Defence Research and Development Organisation (DRDO) remains at the heart of this AI transformation. Through its Centre for Artificial Intelligence and Robotics (CAIR), DRDO has developed more than 75 AI products, ranging from autonomous robots and cyber defence to AI-based surveillance systems.

Alongside, the Indian Army’s dedicated AI Incubation Centre with BEL is nurturing indigenous AI applications that directly meet operational demands.

The policy and funding environment is giving this shift a strong push. The Government of India has earmarked ₹100 crore annually for AI in military projects, backed by the ₹6.81 lakh crore defence budget for FY 2025-26.

With more than 1,000 defence-tech start-ups entering the field, AI-driven solutions are expanding from laboratories to deployment-ready platforms, positioning India as a global innovation hub.

By combining the capabilities of traditional PSUs like BEL and HAL with agile private innovators like Zen Technologies, Paras Defence, and Data Patterns, India is building an AI-powered defence ecosystem that enhances national security and opens new opportunities for global defence exports. AI adoption is not just delivering operational superiority, but also accelerating self-reliance, marking a decisive shift in how India prepares for 21st-century warfare.

Major Defence PSUs Leading AI Integration

Bharat Electronics Limited (BEL)

BEL is spearheading AI adoption with the establishment of an AI Incubation Centre in collaboration with the Indian Army. Its innovations include:

AI-enabled Voice Analysis Software (AIVAS) for advanced speech transcription and monitoring

Sandarbh.AI, a document management system for the Indian Navy

AI-based predictive maintenance for fire control systems

Hindustan Aeronautics Limited (HAL)

HAL has embedded AI in aerospace systems:

Combat Air Teaming System (CATS), where AI enables drones to follow voice commands from fighter jets

AI-based Snag Disposition System for automated aircraft defect detection

AI-enhanced maintenance and carbon recognition tools for aircraft parts

Private Sector Leaders in Defence AI

Data Patterns (India) Limited

This Chennai-based firm integrates AI in radar and avionics, developing object detection tools for surveillance and partnering with DRDO and ISRO on advanced AI-enabled systems.

Zen Technologies Limited

Zen is a pioneer in AI-driven anti-drone systems, using machine learning for detection and neutralization. Its combat simulation platforms also employ AI for realistic battlefield training.

Paras Defence and Space Technologies

Paras has invested in Logic Fruit Technologies to enhance AI-driven embedded solutions. It has launched PARAS.AI for drone data analysis and is working on AI-powered radar and electronic warfare systems.

MTAR Technologies

Known for precision engineering, MTAR is integrating AI in manufacturing processes and AI-driven quality control through collaborations with global defence firms.

Emerging AI Defence Players

Solar Industries: Creator of Bhargavastra Counter-UAV system, AI-powered smart mines, and drones.

DCX Systems: Focused on AI-based electronic warfare and surveillance systems.

Avantel Limited: Developing AI-enhanced satellite communications and software-defined radios.

Government and DRDO Initiatives

The Defence Research and Development Organisation (DRDO), through its Centre for Artificial Intelligence and Robotics (CAIR), has developed over 75 AI-based defence products, covering autonomous platforms, cybersecurity, and surveillance. Additionally, the Indian Army’s AI Incubation Centre with BEL supports indigenous innovation in AI-driven systems.

Market Outlook

India has allocated Rs 100 crore annually for AI in military projects, backed by a Rs 6.81 lakh crore defence budget for 2025-26. With over 1,000 defence-tech startups in AI, the sector is poised for exponential growth.