India’s ongoing defence reforms mark a decisive shift towards technological self-reliance amid an increasingly complex and contested security environment. Within this transformation, short-wave infrared (SWIR) imaging, operating in the 0.9–2.5 μm range, has emerged as a strategically significant capability for surveillance, reconnaissance and targeting under low-light and obscured conditions. However, continued dependence on foreign SWIR sensors and sub-systems creates operational, supply-chain and security vulnerabilities. This article examines the role of indigenous SWIR imaging in advancing India’s defence modernisation and reform agenda. It proposes an end-to-end domestic ecosystem integrating research institutions, defence laboratories and industry to accelerate innovation, technology maturation and manufacturing. The article further examines critical defence applications and the role of policy incentives, R&D funding and strategic procurement in accelerating deployment. Indigenous SWIR capabilities can strengthen technological sovereignty, secure defence supply chains and enhance India’s operational preparedness.