The Iran war has underscored one of the most pressing equations in modern defence: the unsustainable cost of using multimillion-dollar missiles to destroy relatively cheap attack drones.

This reality is reshaping military procurement strategies worldwide, with India emerging as a key player in the race to develop low-cost drone interceptors.

A new generation of interceptors priced as low as $5,000 is being developed to counter mass drone attacks. These systems are designed to preserve advanced missiles for ballistic and high-end threats while providing affordable protection against swarms of drones.

The urgency of this shift, first accelerated by the Ukraine conflict, has been reinforced by the lessons of the Iran war, where drone salvos exposed vulnerabilities in traditional air-defence models.

At the centre of this transformation is Guardian, a $5,000 interceptor created by Florida-based Powerus, built on Ukrainian technology proven against Shahed drones. Guardian is a simple, small weapon that crashes into incoming drones before they reach their targets.

It cannot intercept ballistic missiles, but it forms part of a layered defence strategy where inexpensive interceptors neutralise inexpensive drones, leaving advanced systems like Lockheed Martin’s PAC-3 for more dangerous threats.

India has become a crucial partner in this evolving ecosystem. Powerus has partnered with a defence company near Mumbai to manufacture interceptors locally, marking a significant step in India’s push to enhance its drone warfare capabilities.

This collaboration aligns with India’s broader defence modernisation program, which emphasises indigenous production and rapid deployment of cost-effective systems. By integrating commercial microchips and GPS modules, Guardian has been designed for simple assembly, enabling faster scaling of production.

The economics of drone warfare are stark. Guardian and Neros’ Bandit interceptors cost around $5,000, Raytheon’s Coyote is estimated at $1,26,500, Lockheed Martin’s planned lower-cost interceptor is expected to cost $2 million, while PAC-3 interceptors are priced at nearly $4 million.

Factories affiliated with Powerus currently produce about 3,000 interceptors a month, with a global target of 15,000 per month by mid-2027.

This scale of production represents a departure from traditional defence-industry models, where sophisticated weapons take years to develop and are produced in limited numbers.

Defence giants are also adapting. Lockheed Martin announced plans to produce a lower-cost interceptor in Europe with partners, aiming for a $2 million price point, though testing is not expected until 2028. 

Raytheon continues to advance its Coyote interceptor, while California-based Neros is developing the Bandit, another $5,000-class system. The rapid emergence of this market illustrates the growing demand for affordable solutions to counter mass-produced drones.

India’s role in this shift is particularly significant. By hosting production facilities and integrating into global supply chains, India is positioning itself as a hub for drone-interceptor manufacturing. This complements its indigenous efforts, where start-ups and defence organisations are already developing counter-drone systems tailored to local security challenges. The partnership with Powerus enhances India’s ability to scale production quickly, ensuring readiness against evolving aerial threats.

The broader lesson is clear. Cheap drones have transformed battlefields in Ukraine and Iran, demonstrating that attackers can impose costs simply by forcing defenders to expend expensive interceptors. Sustaining such operations requires affordable alternatives.

Guardian and similar systems represent the new equation: use cheaper weapons against mass-produced drones and reserve sophisticated missiles for high-end threats.

While limitations remain — such as the inability of low-cost interceptors to counter ballistic missiles — the strategic shift is unlikely to fade once conflicts end.

The next arms race may not be about building the fastest missile or most advanced air-defence system, but about creating affordable, scalable solutions to neutralise drone swarms. India’s growing involvement in this sector signals its determination to be at the forefront of this transformation, reshaping both regional and global defence dynamics.

Agencies