Bengaluru is seeing growing activity in defence technology, aerospace manufacturing, autonomous systems and defence electronics as companies expand manufacturing and engineering operations and the state pushes new defence-related industrial projects.
The developments include a Portugal manufacturing partnership announced by Flying Wedge Defence and Aerospace, new facilities from Collins Aerospace and Zetwerk, Airbus's technology centre in Bengaluru, and plans for dedicated defence electronics and avionics parks in Karnataka.
The IT-city accounted for nearly one-third or about 33% of the funding raised by Indian startups in aerospace, maritime, defence technology and military technology between 2023 and 2025, according to data from market intelligence platform Tracxn.
Startups based in the city raised $35.1 million across nine funding rounds in the first six months of 2026. They had raised $180 million across 35 rounds in 2025, $130 million across 62 rounds in 2024 and $116 million across 38 rounds in 2023.
Across India, startups in the four sectors raised $160 million through 37 funding rounds in the first half of 2026. Funding had reached $551 million across 132 rounds in 2025, up from $443 million across 150 rounds in 2024 and $378 million across 129 rounds in 2023.
The latest development came in May when Bengaluru-based Flying Wedge Defence and Aerospace announced a partnership with Portugal's SKETCHPIXEL to manufacture its autonomous combat aircraft platform, Kaal Bhairava. The company said the partnership would enable manufacturing of the platform in Portugal.
Further, US-based aerospace and defence supply-chain company FDH Aero opened a new office in Bengaluru in May, citing rising demand from India's aerospace and defence sector.
"Strong commercial aerospace demand, rising defense investment, and 'Made in India' initiatives are accelerating growth across India's aerospace and defense sector," Matthew Lacki, President of FDH Hardware, said while announcing the company's India expansion.
In November last year, Collins Aerospace inaugurated its manufacturing facility at the KIADB Aerospace Park in Devanahalli. The facility supports production for commercial aviation and defence programmes and forms part of the company's manufacturing operations in India.
Airbus also expanded its footprint in the city with the inauguration of the Airbus India Technology Centre in March. The facility, designed to accommodate around 5,000 employees, supports engineering, procurement, digital and customer-service functions for Airbus's global operations.
Alongside aerospace manufacturing, electronics production linked to defence and aviation is also expanding.
In February, Zetwerk Electronics inaugurated a manufacturing facility in Bengaluru focused on electronics production for aerospace, defence and automotive applications. The facility was inaugurated in the presence of Union Minister for Electronics and Information Technology Ashwini Vaishnaw.
The industrial activity is being accompanied by plans to expand defence-related infrastructure in the state.
Karnataka has announced plans for a 200-acre Defence Electronics Park and a 100-acre Avionics and Sensor Park aimed at attracting companies involved in defence electronics, avionics systems and related technologies.
