India's $2-billion drone acquisition to boost defence deep-tech ecosystem

The proposed military drone procurement is expected to strengthen indigenous manufacturing, expand supply chains and accelerate investments in defence technology and innovation

India's planned move to acquire military drones worth an estimated $2 billion in one of the biggest defence procurement programmes focused on unmanned systems has triggered excitement among domestic manufacturers, who describe it as a defining moment for the country's defence-industrial ecosystem and military modernisation drive.

 

The proposed acquisition, being fast-tracked in the aftermath of recent hostilities with Pakistan and amid growing recognition of drones as critical battlefield assets, is expected to boost indigenous drone production, strengthen supply chains and accelerate investments in defence deep-tech manufacturing.

 

Drone manufacturers said the proposed acquisition is expected to trigger a multi-layered impact on the country's defence manufacturing ecosystem. Beyond providing a substantial order book for drone makers, it is likely to catalyse investments across the entire supply chain, including electronics, sensors, propulsion systems, avionics, composite materials and software development.

 

Bodhisattwa Sanghapriya, founder and chief executive officer of Noida-headquartered defence technology firm IG Defence, said drones are no longer viewed as support assets but as core battlefield systems for surveillance, precision strike, logistics, force protection and electronic warfare. The operational lessons from Operation Sindoor, along with evolving global conflicts, have demonstrated how first-person-view (FPV) strike drones, loitering munitions and autonomous systems can influence battlefield outcomes, he said.

 

"For companies like IG Defence, such procurement programmes provide long-term business opportunities and the confidence to invest further in research, product development and manufacturing scale. Large and sustained orders enable industry players to advance capabilities in FPV drones, AI-enabled autonomy, electronic warfare resilience and next-generation strike systems," he said.

 

With indigenous products like the 1,000-km-range KAL strike drone, a home-grown kamikaze drone, the IG T-Shul anti-drone system and JWALA missiles, IG Defence provides the Indian military with cost-effective, precise strike options to take out high-value enemy assets by reducing reliance on expensive imported technology. It has already supplied hundreds of FPV drones to the Indian Army. The company currently has the capacity to manufacture up to 200 drones per day, making it one of the largest drone manufacturers in India by production capability.

 

Satyabrata Satapathy, co-founder and chief executive officer of BonV Aero, an Odisha-based drone manufacturer, said the planned procurement validates years of investments made by domestic firms in developing military-grade unmanned systems.

 

"It would bring four major changes to the sector: stronger market confidence by moving drones from pilot projects to operational deployment, expansion of manufacturing capacity to meet delivery schedules, rapid growth of ancillary original equipment manufacturers (OEMs), and the creation of thousands of skilled jobs across manufacturing, engineering, research and development, and field operations," he said.

 

Anticipating the growing demand for military drones, BonV Aero is establishing a Rs 300 crore drone park in Khurda district, which it said would substantially enhance manufacturing capacity and support the country's increasing requirement for indigenous unmanned systems. It has also planned a dedicated testing hub at Rangailunda to facilitate quicker turnaround times and realistic operational testing of UAVs.

 

The company said deliveries expected over the next 18 to 24 months would significantly strengthen India's domestic drone supply chain and create opportunities for smaller component manufacturers and technology suppliers.

 

To meet the growing demand for drone supplies, IG Defence has also secured approvals for manufacturing and expansion initiatives within the Uttar Pradesh Defence Industrial Corridor, while the Odisha government has approved a Rs 300 crore expansion project in Ganjam district.

 

Defence analysts point out that lessons from recent conflicts, including the Russia-Ukraine war and military confrontations in West Asia, have fundamentally altered military thinking worldwide. Low-cost drones, loitering munitions and autonomous surveillance systems have demonstrated their ability to deliver strategic effects at a fraction of the cost of conventional platforms.

 

For India, which faces complex security challenges along both its western and northern borders, large-scale induction of drones is viewed as critical for maintaining persistent situational awareness, reducing risks to personnel and improving battlefield effectiveness.

 

Military veteran Maj Gen R C Padhi (Retd) described the proposed procurement as a watershed moment in India's defence modernisation programme. "Drones have emerged as one of the most effective force multipliers on the modern battlefield, providing persistent intelligence, surveillance, reconnaissance and precision-strike capabilities at scale. Unmanned systems are becoming indispensable across all theatres of operation and the coming years would witness drones being integrated into virtually every military mission involving land, air and maritime domains," he added.

 

India has more than 600 drone-related companies, with over 100 actively focused on defence and military applications. The industry has matured over the years with the support of initiatives such as iDEX, faster procurement pathways and collaboration with the armed forces. With deliveries for the proposed procurement expected over the next two years, the sector is already preparing to scale up manufacturing capacity, increase component localisation and strengthen testing and integration capabilities to meet operational timelines.