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India's Defence Forces Poised to Benefit from Longer Quantum Networks

Bengaluru-based deeptech startup QNu Labs is gearing up to deploy even longer, operational networks for India's defence forces, according to CEO Sunil Gupta. This move comes on the heels of India's National Quantum Mission reaching the 1,000-km quantum network established by QNu Labs, marking the halfway point toward the 2,000-km eight-year target.

QNu Labs, which developed the indigenous quantum key distribution (QKD) system, is already executing projects for the army and expects similar networks for other strategic users to exceed the 1,000-km mark. The company's QKD system makes communications safe by leveraging the principles of quantum mechanics rather than maths to secure the distribution of the encryption keys, the most vulnerable part of digital communication.

The 1,000-km network marks a significant technical achievement, but Gupta said the company's work is already moving into live environments. "We have both demonstration as well as deployments… very large networks," he said, pointing to work with the defence establishment. The latest deployment connects multiple cities, stitching together fibre optic links with quantum-secure nodes.

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Quantum Security: A Fundamental Advantage

The appeal of quantum security lies in its fundamental physics. In classical systems, encryption relies on mathematical complexity. Hackers can, in theory, copy encrypted data and attempt to break it later. They can also intercept the encryption keys themselves without detection. Quantum communication changes that dynamic. "If somebody taps the optical fibre… the very act of tapping will leave a footprint," Gupta said. "We will know that somebody is trying to access the information."

This means that even if encrypted data is intercepted, the keys needed to decrypt it remain secure. This is relevant in the context of future quantum computers, which are expected to break widely used encryption standards.

QNu Labs' Dual Approach

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QNu Labs has come up with a dual approach for addressing customer needs. For high-security environments such as defence or telecom, the company deploys hardware-based QKD systems that rely on quantum physics for ultimate security. For enterprises, QNu Labs is pitching a software-based post-quantum cryptography (PQC) solution. It leverages advanced mathematical algorithms designed to withstand attacks from future quantum computers.

Customer SegmentQKD TypeSecurity Level
Defence/TelecomHardware-basedUltimate security
EnterprisesSoftware-basedSecure enough for the next few decades

These systems are easier to deploy and integrate with existing infrastructure, Gupta said, acknowledging that they are theoretically less secure than hardware-based QKD. "Hardware is ultimate security… software is secure enough for the next few decades and far more flexible," he said.

Banks and Enterprises Enter the Picture

While defence has emerged as an early adopter, QNu is increasingly seeing interest from banks and enterprises. The challenge is not just technological but structural. "Enterprises don't even know where their encryption is," Gupta said. To address the problem, the company has built a platform that allows enterprises to map their existing cryptographic infrastructure, prioritise risks, and migrate in phases, Gupta said.

However, the shift is unlikely to be immediate, he said. "It's not a flip of a switch. It's a journey," he said, adding companies typically require multi-year roadmaps depending on the sensitivity of their data and compliance requirements. Regulatory nudges are beginning to accelerate this transition. According to Gupta, the market is still in its early stages but nearing an inflection point. "The technology is ready, standards are coming, mandates are coming… it's a matter of time," he said, estimating broader enterprise adoption could begin accelerating over the next year.

Investor Takeaway

Investors should keep an eye on QNu Labs' growth in the quantum technology sector.

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