India poised for historic $2b domestic military drone purchase

WEB DESK: India is expected to place orders worth more than $2bn (over Rs166b) for military drones from domestic manufacturers this year, marking its largest-ever acquisition of unmanned aerial vehicles (UAVs) as regional and global conflicts reshape modern warfare tactics.

The procurement plans are reportedly in advanced stages, with deliveries anticipated within an 18 to 24-month timeframe, according to The Express Tribune.

According to the Drone Federation of India (DFI), an industry body representing over 550 companies that works closely with New Delhi, this next phase represents a massive surge from recent government orders for tactical-class drones, which stood at around Rs30b ($313m).

"In the next phase, tactical drone procurements in India may exceed 200b rupees, or more than $2b," DFI President Smit Shah told Reuters. He added that the impending orders are likely to follow a fast-track procurement route specifically designed to meet urgent operational requirements.

While India’s defence ministry did not immediately respond to requests for comment, the large-scale move underscores a drastic shift in the region's security apparatus following high-tension border friction last year.

Shifting battlefield dynamics

The aggressive push for expansion follows cross-border clashes between India and Pakistan in May last year, during which both militaries deployed UAVs at scale for the first time.

The standoff highlighted the potent offensive capabilities of low-cost drone technology, echoing lessons learned from global battlefields in Ukraine and the Middle East, where unmanned systems have drastically driven down costs and forced a rewriting of traditional military doctrines.

Military experts point out that the integration of these systems is no longer optional for contemporary armed forces.

"Drones are force multipliers on the modern battlefield," noted Ramesh Chandra Padhi, a former senior army officer and current executive at IG Defence, a firm specializing in advanced unmanned aerial and short-range missile systems.

He confirmed that the Indian military is actively utilizing emergency and fast-track channels to expedite large-scale induction.

The planned procurement aligns with a broader defence spending spree. In March, India’s defence ministry approved a massive Rs2.38tri ($24.85b) proposal encompassing transport aircraft, missile infrastructure, and "remotely piloted strike aircraft" a formal designation for armed combat drones.

Domestic manufacturing boom

The influx of capital is rapidly transforming India’s domestic drone ecosystem, which currently boasts more than 600 firms and component manufacturers, with at least 100 dedicated strictly to defence applications.

To accelerate production, New Delhi has expanded financial pipelines such as the Innovations for Defence Excellence (iDEX) scheme.

The initiative funds early-stage prototypes, allowing startups and smaller enterprises to secure initial orders and scale up manufacturing capabilities at a much faster pace.

Furthermore, the defence ministry has eased stringent testing protocols, opened up traditionally state-dominated procurement sectors to the private industry, and encouraged the armed forces to issue repeat and interim orders.

This approach allows private firms to continuously refine their hardware based on real-time military feedback.

According to industry representatives, the policy shift is successfully moving the sector away from its historical reliance on small, fragmented players.

The combination of clear policy support and long-term order visibility has unlocked substantial venture capital investment and fostered strategic tie-ups with larger, established defence conglomerates, positioning the domestic industry to meet surging military demand.

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