The emphasis on indigenous capabilities was reflected during Operation Sindoor, where India deployed domestically developed drones, loitering munitions and precision-guided systems in strikes on key Pakistani military installations.
India is likely to place its largest-ever military drone order, with planned purchases from domestic manufacturers expected to exceed $2 billion, according to an industry body working closely with the government. The move reflects New Delhi’s growing focus on unmanned warfare capabilities as global conflicts reshape military planning and battlefield tactics. Speaking to Reuters, Smit Shah, President of the Drone Federation India (DFI), said procurement plans were at an advanced stage and could surpass 200 billion rupees ($2 billion) in the next phase of acquisitions. The proposed order would represent a sharp increase from recent government contracts worth around 30 billion rupees ($313 million) for tactical-class drones.
“In the next phase, tactical drone procurements in India may exceed 200 billion rupees, or more than $2 billion,” Shah told Reuters. He added that deliveries are expected over the next 18 to 24 months and could be executed through a fast-track procurement route designed to meet urgent operational requirements.
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In March, India’s Defence Ministry approved military acquisitions worth approximately 2.38 trillion rupees ($24.85 billion), including transport aircraft, missile systems and remotely piloted strike aircraft, though it did not disclose a detailed spending breakdown. “Drones are force multipliers on the modern battlefield,” Ramesh Chandra Padhi, an executive at IG Defence and a former senior Army officer, told Reuters. “The Indian army is following emergency or fast-track procurement to expedite the induction of drones on a very large scale.”
In March 2026, speaking at the National Defence Industries Conclave, Defence Minister Rajnath Singh said ongoing conflicts, from the Russia-Ukraine war to tensions between Iran and Israel, had underscored the growing importance of drones and counter-drone systems in modern warfare. He stressed that India must achieve self-reliance not only in drone manufacturing but also in the production of critical components. The emphasis on indigenous capabilities was reflected during Operation Sindoor, where India deployed domestically developed drones, loitering munitions and precision-guided systems in strikes on key Pakistani military installations. The conflict highlighted the offensive and surveillance potential of relatively low-cost drone systems. According to the Press Information Bureau (PIB), India’s drone market is projected to reach $11 billion by 2030, accounting for 12.2 per cent of the global market. The sector’s rapid growth has been driven by sustained domestic research and development, the 2021 ban on imported drones and the government’s Production Linked Incentive (PLI) scheme, which has accelerated innovation and manufacturing across the industry.
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India’s drone manufacturing ecosystem has expanded rapidly in recent years. The country now has more than 600 companies producing drones and components, with over 100 focused on defence applications. The sector includes established players such as Adani Group, Larsen & Toubro and Tata Advanced Systems, alongside specialist firms including ideaForge, NewSpace Research and Asteria Aerospace. These companies develop reconnaissance drones, loitering munitions, logistics platforms, precision-strike systems and critical drone components.
India has streamlined defence procurement procedures and expanded programmes such as Innovations for Defence Excellence (iDEX) to support startups, fund prototypes and accelerate production. The government has also widened procurement opportunities for private firms while encouraging repeat orders that allow manufacturers to refine and scale their technologies. “The changes are reshaping India’s drone industry,” Shah said, adding that stronger order visibility, increased investment and partnerships with larger defence companies are helping firms expand manufacturing and research capabilities to meet rising military demand.
Subhadra Srivastava is a Sub Editor at WION with two years of experience in the media industry, covering space, defence, and geopolitics. Passionate about clarity and accuracy, she…Read More
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