India is preparing for its largest military drone acquisition to date, with plans to order more than $2 billion worth of systems from domestic manufacturers this year, reported Reuters news agency.

This procurement, described by the Drone Federation of India, reflects the country’s determination to rapidly expand its unmanned aerial capabilities in response to global and regional conflicts. Deliveries are expected within 18 to 24 months, a timeline that underscores the urgency of the program.

The scale of the order marks a sharp increase from recent government contracts valued at 30 billion rupees ($313 million) for tactical-class drones, signalling a major leap in investment and ambition.

Smit Shah, president of the Drone Federation of India, which represents over 550 companies and works closely with the government, stated that tactical drone procurements in the next phase could exceed 200 billion rupees, equivalent to more than $2 billion.

He emphasised that the new orders may follow a fast-track procurement route designed to meet urgent operational needs, with deliveries required within two years. The defence ministry has not yet commented on the reported plans, which Reuters was the first to disclose.

India’s push towards large-scale drone induction follows clashes with Pakistan in May 2025, when both sides deployed unmanned aerial vehicles extensively for the first time. These engagements highlighted the offensive potential of low-cost drones and exposed gaps in India’s surveillance and strike capabilities.

The conflicts in Ukraine and Iran have further accelerated global adoption of drones, driving down costs and reshaping battlefield tactics. In March 2026, the defence ministry approved a proposal worth about 2.38 trillion rupees ($24.85 billion) to procure transport aircraft, missile systems, and remotely piloted strike aircraft, though no detailed spending breakdown was provided.

Industry voices have reinforced the urgency of drone induction. Ramesh Chandra Padhi, an executive at IG Defence and a former senior army officer, described drones as force multipliers on the modern battlefield.

He noted that the Indian Army is pursuing emergency or fast-track procurement to expedite induction on a very large scale, reflecting the strategic importance of unmanned systems in modern warfare.

India’s drone industry has expanded rapidly, with more than 600 firms engaged in manufacturing drones and components, and over 100 focused specifically on defence applications.

Major players such as Adani Group, Larsen & Toubro, and TATA Advanced Systems are joined by start-ups including ideaForge, Newspace Research, and Asteria Aerospace. These companies are developing reconnaissance, logistics, loitering munition, precision-strike, and critical component systems to meet rising military demand.

In recent years, India has overhauled its traditionally slow defence procurement process to allow faster acquisition of drones. Emergency procurement powers and streamlined procedures under the Defence Acquisition Procedure have compressed timelines from years to mere months.

At the same time, the government has prioritised domestically manufactured systems, aligning with its Atmanirbhar Bharat vision. Schemes such as Innovations for Defence Excellence (iDEX) have been expanded to fund prototypes, enabling smaller firms to secure initial orders and scale production more quickly.

The defence ministry has also opened more procurement areas to start-ups and private firms, eased testing norms, and encouraged the armed forces to adopt systems through repeat and interim orders. 

This approach allows companies to refine products rapidly while ensuring operational readiness. The changes are reshaping India’s drone industry, which was long dominated by small players, by providing better order visibility and policy support that unlock funding and partnerships.

Venture investment and collaborations with larger defence firms have increased, with companies ramping up manufacturing and research to meet the surge in military demand.

India’s forthcoming $2-billion drone order represents not only the largest such purchase in its history but also a decisive step in transforming its defence ecosystem.

By combining fast-track procurement, indigenous manufacturing, and industry partnerships, New Delhi is positioning itself to strengthen operational capabilities while fostering a robust domestic drone industry.

Agencies