India is set to significantly strengthen its defence capabilities through a large-scale procurement of drones, as confirmed by Defence Secretary Rajesh Kumar Singh. The upcoming order will be substantial enough that, according to Singh, the industry will not require additional fiscal support from the government. This initiative is part of a broader strategy to address capability gaps in military-grade drone manufacturing and to position India as a global drone superpower.

 "The size of the order for defence drones will be large enough and industry will need no other fiscal support," Singh said.

The Ministry of Defence will place this order under the Buy Indian IDDM (Indigenously Designed, Developed and Manufactured) route, which prioritizes domestic production and technological self-reliance.

The IDDM route mandates that drones must be either fully designed and developed in India or, if technology is acquired from abroad, that manufacturing takes place within the country. The government remains open to partnerships with companies acquiring foreign technology, provided the drones are manufactured domestically, thereby supporting the growth of India’s defence industrial base.

The scale of the procurement will encompass large tenders for various categories of drones, including swarm drones, UAVs, and logistic drones, under both emergency provisions and long-term contracts. For instance, the Ministry has already issued a Request for Information (RFI) for the procurement of 570 logistic drones for the Indian Army, targeting deployment in both standard and high-altitude environments.

Additionally, there have been significant orders for specialized drone systems, such as integrated drone detection and interdiction systems, and hybrid mini UAVs for intelligence, surveillance, and reconnaissance (ISR) missions.

This procurement drive is supported by recent policy changes aimed at accelerating defence acquisitions, with a new Defence Acquisition Procedure (DAP 2025) expected to further streamline processes and reduce procurement cycles to a maximum of two years.

The government is leveraging its monopsony power as the sole buyer to stimulate the domestic ecosystem, encouraging both established and emerging manufacturers to scale up production and invest in advanced capabilities.

This large drone order is a pivotal step in India’s ambition to bridge operational gaps, modernize its armed forces, and establish itself as a leader in the global drone industry. The focus on indigenous development, combined with openness to technology transfer and robust procurement, is expected to create a vibrant and competitive military drone manufacturing sector in the country.

Based On CNBC TV18 Report