India’s $2 billion drone acquisition
The proposed acquisition, being fast-tracked following the 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 investment in defense intensive technology manufacturing.
Drone manufacturers said the proposed acquisition is expected to have a multiplier effect on the country’s defense manufacturing ecosystem. Apart from providing substantial order books for drone manufacturers, it is likely to catalyze investment across the entire supply chain, including electronics, sensors, propulsion systems, avionics, composite materials and software development.
Bodhisatva Sangpriya, founder and CEO of Noida-headquartered defense technology firm IG Defence, said drones are no longer seen as auxiliary assets but as core battlefield systems for surveillance, precision strikes, logistics, force protection and electronic warfare. He said operational lessons from global conflicts as well as Operation Vermillion have shown how first-person-view (FPV) strike drones, hovering weapons and autonomous systems can influence war outcomes.
He said, “For companies like IG Defence, such procurement programs 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 resiliency and next-generation strike systems.”
With indigenous products such as 1,000 km range KAL strike drones, indigenous kamikaze drones, IG T-Shul anti-drone systems and Jwala missiles, IG Defense provides the Indian Army with cost-effective, precision strike options to eliminate high-value enemy assets by reducing dependence on costly imported technology. It has already supplied hundreds of FPV drones to the Indian Army. The company currently has the capacity to manufacture 200 drones per day, making it one of the largest drone manufacturers in India in terms of production capacity.
Satyabrata Satpathy, co-founder and chief executive officer of Odisha-based drone manufacturer Bonavi Aero, said the planned purchase validates years of investment by domestic companies in the development of military-grade unmanned systems.
He said, “This will bring four major changes in the sector: stronger market confidence by taking drones from pilot projects to operational deployment, expansion of manufacturing capacity to meet delivery schedules, rapid growth of supporting original equipment manufacturers (OEMs), and creation of thousands of skilled jobs in manufacturing, engineering, research and development and field operations.”
Anticipating the growing demand for military drones, Bonvi Aero is setting up a Rs 300-crore drone park in Khurda district, which it says will significantly increase manufacturing capacity and support the country’s growing need for indigenous unmanned systems. It has also planned a dedicated test center at Rangeilunda to facilitate quick turnaround time and realistic operational testing of the UAV.
The company said the expected deliveries over the next 18 to 24 months will significantly strengthen India’s domestic drone supply chain and create opportunities for small component manufacturers and technology suppliers.
To meet the growing demand for drone supplies, IG Defense has also secured approval for manufacturing and expansion initiatives within the Uttar Pradesh Defense Industrial Corridor, while the Odisha government has approved a Rs 300 crore expansion project in Ganjam district.
Defense analysts say lessons learned from recent conflicts, including the Russia-Ukraine war and military confrontations in West Asia, have fundamentally changed military thinking around the world. Low-cost drones, munitions and autonomous surveillance systems have demonstrated their ability to deliver strategic effects at a fraction of the cost of traditional platforms.
For India, which faces complex security challenges on both its western and northern borders, large-scale induction of drones is considered important to maintain constant situational awareness, reduce risks to personnel and improve battlefield effectiveness.
Military veteran Major General RC Padhi (retd) described the proposed purchase as an important moment in India’s defense modernization programme. He said, “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 large scale. Unmanned systems are becoming indispensable in all theaters of operations and in the coming years drones will be integrated into almost every military mission involving land, air and maritime domains.”
There are over 600 drone-related companies in India, of which over 100 are actively focused on defense and military applications. The industry has matured over the years with the support of initiatives like iDEX, faster procurement routes and collaboration with the armed forces. With delivery of the proposed procurement expected in the next two years, the sector is already preparing to increase manufacturing capacity, enhance component localization and strengthen testing and integration capabilities to meet operational timelines.
