India emerging as major defence innovation partner for Washington: Raj Shah

Given your experience heading the US Pentagon’s DIUx, what is the state of American defence innovation, and which technologies do you believe will be most crucial for national security?

The US innovation ecosystem is at a pivotal moment. Over the past decade, initiatives like DIUx have proven that commercial technology can transition to military use at speed, but until recently, government demand and acquisition processes often lagged behind. Today, we’re seeing meaningful cultural and structural change; acquisition reform with faster contracting, more vendors, and a real willingness to leverage dual-use technologies.

From my perspective, the technologies that will be most critical for national security are those that give us strategic advantage and operational flexibility. AI and autonomy, which accelerate decision-making and operational reach as well as cyber capabilities, both defensive and offensive. There is space-based ISR and communications, for resilience and situational awareness and undersea and maritime technologies, for monitoring and deterrence. Also enabling technologies for supply chain resilience, including advanced materials and critical minerals. The next frontier is combining these technologies at speed and at scale, so they actually reach the warfighter, not just remain as prototype pilots or in the labs.

With rising competition from countries like China to develop next-generation defence tech, what is America’s position?

The US is in a strong position, but it’s not guaranteed. Our greatest advantages are ingenuity, a Venture Capital system that is interested in national security, and a robust private capital ecosystem. By leveraging commercial technology, venture investment, and defence partnerships, we have shown that the government can move faster than traditional acquisition cycles. But speed alone isn’t enough. We need to think strategically and globally; aligning with allies, sharing capabilities where interests overlap, and scaling technologies across borders. That’s why initiatives like DIU and Shield Capital emphasise borderless solutions in space, undersea, and cyber. The competition isn’t just about developing technology first. It’s about getting it into operational use reliably, globally, and economically, while maintaining resilience and security.

Countries like India are developing their defence tech ecosystems, and the US is a key partner through innovation bridges like INDUS-X. Your view?

India is emerging as a critical partner for the US. Platforms like INDUS-X are exactly the kind of programmes that make global defence innovation practical and scalable. From my perspective, these partnerships benefit both sides: they accelerate the adoption of advanced technologies, expand the industrial base, and reinforce shared security interests. I encourage our founders to think beyond US borders. Many of our investments, whether in space, undersea and maritime autonomy, or cyber/AI, already operate in international markets. These collaborations strengthen the economic security of all involved, industrial resilience, and interoperability with allies.

Does Shield Capital intend to invest in the Indian defence industrial space? Is there anything Indian firms can help supply to US firms and to the Pentagon?

Shield Capital looks at the best technologies in AI, autonomy, cyber, and space from startups around the world. And there are a number of ways for Indian companies to get involved with US defence priorities, from responding to challenges to solicitations.