NEW DELHI: India is preparing what could become its largest-ever military drone procurement programme, with plans to purchase more than $2 billion worth of unmanned aerial systems from domestic manufacturers, according to an industry body working closely with the government.
The proposed acquisition, which is reportedly in advanced stages, comes as India seeks to strengthen its surveillance and strike capabilities amid evolving security challenges and growing global reliance on drone technology. If approved, the order would represent a significant increase from recent government purchases worth about 30 billion Indian rupees ($313 million) for tactical-class drones.
Smit Shah, president of the Drone Federation India (DFI), told Reuters that tactical drone procurement in the next phase could exceed 200 billion rupees, equivalent to more than $2 billion. The federation represents more than 550 companies and collaborates with government institutions on industry development.
According to Shah, the planned purchases may be carried out through a fast-track procurement process designed to address urgent operational requirements, with deliveries expected within 18 to 24 months.
India’s Ministry of Defence has not publicly commented on the reported procurement plans.
Growing role of drones in modern warfare
The push for expanded drone acquisition follows recent regional and international conflicts that have highlighted the increasing role of unmanned systems on the battlefield.
Military analysts note that drone deployments during clashes between India and Pakistan, as well as ongoing conflicts in Ukraine and the Middle East, have demonstrated the effectiveness of relatively low-cost aerial platforms for surveillance, reconnaissance and precision strikes.
In March, India’s defence ministry approved a broader procurement proposal valued at approximately 2.38 trillion rupees ($24.85 billion), covering transport aircraft, missile systems and armed remotely piloted aircraft. The ministry did not disclose a detailed spending breakdown.
Ramesh Chandra Padhi, an executive at defence manufacturer IG Defence and a former senior army officer, said drones have become important force multipliers in modern military operations. He added that the Indian Army is increasingly using emergency and accelerated procurement mechanisms to speed up drone induction.
Domestic manufacturers positioned to benefit
India’s drone sector has expanded rapidly in recent years, supported by government policies aimed at strengthening domestic defence production.
More than 600 companies are currently involved in drone and component manufacturing, with over 100 focused on defence-related applications. Major industry participants include large corporations such as Adani Group, Larsen & Toubro and Tata Advanced Systems, alongside technology firms and startups including ideaForge, NewSpace Research and Asteria Aerospace.
These companies develop a range of systems, including reconnaissance drones, logistics platforms, loitering munitions, precision-strike systems and critical drone components.
The Indian government has introduced several reforms to accelerate defence acquisitions and encourage local production. Authorities have expanded programmes such as Innovations for Defence Excellence (iDEX), which supports prototype development and helps emerging companies secure initial contracts.
Officials have also broadened procurement opportunities for private firms and startups, simplified testing procedures and encouraged repeat orders that allow manufacturers to improve and scale their products more quickly.
Industry representatives say the combination of policy support, stronger demand and increased investment is helping transform India’s drone ecosystem, leading to expanded manufacturing capacity, research activity and partnerships across the defence sector.
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