India is emerging as a neutral supplier in the global market for operational technology (OT) security, with the country building its first full-fledged OT security testbed and witnessing the rise of domestic product companies, Data Security Council of India (DSCI) chief executive Vinayak Godse said.

Startups and user companies can test products across the whole process-industry stack, from sensors and networks to the command centre and cloud, via the testbed, set up with the assistance of companies like Siemens. “Creating those capabilities and skills in OT security is happening probably for the first time in the country,” Godse told ET.

OT security involves technology and practices to protect operational technology systems from cyberthreats. The infrastructure comes at a time when India’s cybersecurity product market is projected to reach $4.46 billion by the end of 2025. A new wave of Indian OT security startups—four to five well-established firms and several emerging ones—is gaining commercial traction in the US, Middle East and Africa markets.

“There wasn’t any product company in OT security earlier (in India). But now you have companies building new products,” Godse said, adding that India’s neutral geopolitical positioning is helping these firms compete globally.

Deeptech security companies must design for global markets from day one to be sustainable, he said. A domestic-only focus is commercially restrictive due to premium pricing, enterprise budgets and per capita GDP disparities between India and developed markets.

Product companies are using DSCI’s global partner channels, diaspora networks, and catalyst programs to help them grow, he said

India has about 60,000 cybersecurity professionals, and the number is rising 25% annually. However, deep domain expertise, advanced research positions, and product engineering are still in short supply. As businesses expand to midsize cities seeking cost efficiencies and talent, these locations are turning into development hubs.

“Critical product engineering roles are still undersupplied,” Godse said, noting that focused clusters for talent development, research, and productisation are essential.

The OT domain comes with its own complexity. The testbed is an essential enabler because proof-of-concept deployments in manufacturing, chemical and power industries are challenging. Sectoral OT security summits in manufacturing, power, chemicals and health are also being used to mobilise user industries and increase demand for domestic solutions.

Regulated sectors, Godse said, understand security but remain cautious about cloud-native platforms and global data exchange environments. This hesitation around platformisation makes the testbed particularly valuable, as it allows companies to experiment with cloud and data-exchange capabilities in a controlled environment before full deployment. Increasing reporting obligations and compliance requirements are pushing companies toward more mature cyber practices.

To compete with global cybersecurity hubs like Israel, India needs to sharpen product quality, strengthen go-to-market capability and attract investment at scale, Godse said. Sustainable growth, he added, will depend on deep engineering, coordinated clusters and the ability of Indian security companies to win in global markets.

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