Policies and capital are increasingly being aligned to support industrial innovation, and the push is only getting sharper. The approval of the ₹33,600 Cr BHAVYA scheme to develop 100 plug-and-play industrial parks signals a clear intent to build large-scale infrastructure for manufacturing-led growth. Besides, continued incentives for semiconductors, electronics and critical supply chains reflect a broader ambition to move India up the global manufacturing value chain.

On the other hand, however, some recent developments have also exposed the sector’s underlying vulnerabilities. Supply-side disruptions, such as the LPG crisis triggered by geopolitical tensions in West Asia, have begun impacting manufacturing units and labour availability across key industrial clusters like Tamil Nadu, Gujarat and Delhi NCR. For many new-age brands, workforce shortages and rising input costs have become immediate operational challenges.

Yet, despite near-term disruptions, the broader trajectory remains promising. India’s manufacturing ecosystem is not only expanding in scale but also evolving in structure. The focus is steadily shifting towards building domestic supply chains, strengthening component manufacturing, and enabling deeptech-led industrial innovation.

Startups are increasingly stepping up to fill this gap. From semiconductor design and electronics hardware to aerospace systems and industrial robotics, a new wave of founders is emerging at the intersection of technology and manufacturing. Against this backdrop, we are back with the second edition of Inc42’s bimonthly series, ‘5 Manufacturing Startups To Watch’, which spotlights major early stage disruptors in the realm of manufacturing.

This latest edition features companies building high-performance computing hardware, embedded electronics, and solar-powered UAVs and robots. With that said, here are the five manufacturing startups that caught our eye in April 2026. Editor’s Note: This list is not a ranking.

It is a curated selection of manufacturing startups that have stood out to the Inc42 editorial team this month. Anmaya Technologies | Building India’s Defence Hardware Backbone As India strengthens its defence and space tech capabilities, high-performance computing hardware is becoming central to next-generation systems such as satellites, drones and secure communication networks. Field-Programmable Gate Array (FPGA)-based systems are increasingly being adopted in mission-critical environments.

But the country still remains dependent on overseas vendors for this technology, owing to its high development costs. But a Karnataka-based startup is trying to change this. Founded in 2022 by Nandavara Jayaram Hariprasad and Shobhitha Ujire, Anmaya Technologies operates in the FPGA-based system-on-module (SoM) manufacturing segment, building customised hardware solutions for aerospace, defence and high-performance computing applications.

It designs and manufactures FPGA-based modules tailored for specific use cases, including satellite systems, drone communication and compute acceleration. It operates in the Indian FPGA market, which is projected to reach $1,486.8 Mn by 2030. With a growing client portfolio across the spacetech and defence tech sectors, Anmaya is expanding into adjacent areas, including anti-drone technologies and signal intelligence systems.

As India pushes for defence indigenisation and private sector participation in space tech, FPGA-based hardware manufacturers like Anmaya are critical enablers of advanced electronic and embedded systems. Bacancy Systems | Engineering India’s EV And Rail Future As India scales its electric mobility and railway modernisation efforts, embedded electronics are becoming critical to the development of next-generation infrastructure. From EV charging systems to smart rail networks, the need for reliable, locally manufactured control systems is rising rapidly.

Founded in 2021 by Binal Patel, Krunal Patel and Hardik Sheth, Bacancy Systems builds hardware and software solutions across electric mobility, healthcare and railway systems. Its core capabilities include EV charging controllers, battery management systems (BMS), motor controllers and embedded IoT solutions. The company is also developing train control and management systems (TCMS), traction converter controls, and passenger information systems that aim to improve efficiency and reliability in rail networks. With a dedicated production facility and end-to-end capabilities spanning design, validation and