Manufacturing Startups To Watch: 5 Startups That Caught Our Eye In September

by · Inc42

SUMMARY

  • Indian manufacturing startups are building technologies for the country's next phase of industrial growth, as capital and policy support accelerate the shift towards advanced manufacturing
  • From low-carbon metals and power electronics to MEMS, metal additive manufacturing and EV charging, these startups are tackling critical opportunities emerging across India’s manufacturing ecosystem
  • Their rise reflects a broader shift beyond conventional assembly, with startups developing specialised products and technologies for sectors ranging from clean energy and mobility to industrial and strategic applications
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India’s manufacturing story is entering a new era. After years of policy support and incentives, capital is now flowing into factories, production lines and specialised industrial technology.

The semiconductor industry offers the clearest signal of this shift. At Semicon India 2026 earlier this month, the Centre said it has received investment commitments totalling ₹1 Lakh Cr under the recently notified Semicon 2.0 mission. 

Global suppliers are also beginning to treat India as part of their production strategy. At Semicon India 2026, Applied Materials alone committed $5 Bn to the country – an investment that reinforces India’s evolution to a potential manufacturing hub.

The funding momentum is also picking up across manufacturing-intensive sectors. Advanced hardware and technology startups, spanning aerospace, defence, semiconductors and robotics, raised $365 Mn across 66 deals in the first half (H1) of 2026. And the momentum is percolating into the second half as well.

Pixxel recently bagged $100 Mn to expand satellite manufacturing, while DheyaTech mopped up capital to develop indigenous gas turbines. Then, there is Aeron Systems, which secured funding to scale navigation and weather-monitoring systems.

Yet, the manufacturing opportunity is not limited to strategic technologies. New regulations are creating demand for domestic capabilities in materials and industrial components. Simultaneously, India’s energy transition is creating another market, driving investor interest in manufacturing required to support electric mobility.

Taken together, these developments point to a growing manufacturing ecosystem that is broadening beyond conventional assembly. As a result, a new wave of startups is building products and technologies for the next phase of India’s industrial growth.