India plans over $2 billion drone purchase as defence demand rises

NEW DELHI: India is likely to place orders worth more than $2 billion for military drones from domestic companies this year, in what could be its largest such purchase, as recent conflicts increase demand for unmanned systems, according to an industry body working with the government.

Smit Shah, president of Drone Federation India, said the procurement plans were at an advanced stage and deliveries were expected over 18 to 24 months.

He said the next phase of tactical drone purchases could exceed 200 billion rupees, or more than $2 billion, compared with recent government orders of 30 billion rupees, or $313 million, for tactical-class drones.

Drone Federation India represents more than 550 companies and works closely with the government.

Shah said the new orders could follow a fast-track procurement route intended to meet urgent operational requirements, with deliveries likely to be required within 24 months.

India’s drone industry includes more than 600 companies making drones and components, with over 100 working on defence-related applications.

The companies include large groups such as Adani Group, Larsen & Toubro and Tata Advanced Systems, along with startups including ideaForge, Newspace Research and Asteria Aerospace.

They are involved in reconnaissance, logistics, loitering munitions, precision-strike systems and critical drone components.

In March, India’s defence ministry approved a proposal worth about 2.38 trillion rupees, or $24.85 billion, to buy transport aircraft, missile systems and remotely piloted strike aircraft, or armed drones, without giving a separate spending breakdown.