India set for $2bn drone order in biggest buy

Published June 4, 2026 Updated June 4, 2026 08:07am
This file photo shows Falcon, a surveillance drone, on display at the drone exhibition at Bharat Drone Shakti 2023 organised by the Indian Air Force and Drone Federation of India at the Hindon Airbase in Ghaziabad, India on September 25, 2023. — Reuters/File
This file photo shows Falcon, a surveillance drone, on display at the drone exhibition at Bharat Drone Shakti 2023 organised by the Indian Air Force and Drone Federation of India at the Hindon Airbase in Ghaziabad, India on September 25, 2023. — Reuters/File

NEW DELHI: India is likely to order more than $2 billion worth of military drones from domestic firms this year in its biggest such purchase, an industry body working with the government said, as global and regional conflicts boost demand.

The plans are in advanced stages with deliveries expected over 18 to 24 months, for a jump in value from recent government orders worth 30 billion rupees ($313 million) for tactical-class drones, said Smit Shah, president of the body.

“In the next phase, tactical drone procurements in India may exceed 200 billion rupees, or more than $2 billion,” said Shah, whose Drone Federation India represents more than 550 companies and works closely with the government.

Shah said the new orders may follow a fast-track procurement route designed to meet urgent operational needs, with deliveries probably needed within 24 months.

The country has 600 firms making drones, with more than 100 focused on defence applications

Drones in spotlight

India’s push follows clashes with arch-rival Pakistan in May last year, when both sides deployed unmanned aerial vehicles at scale for the first time, highlighting the offensive potential of low-cost drones. The conflicts in Ukraine and Iran have further sped adoption globally, driving down costs and reshaping battlefield tactics.

In March, the defence ministry approved a proposal worth about 2.38 trillion rupees ($24.85 billion) to buy transport aircraft, missile systems and “remotely piloted strike aircraft”, or armed drones, without giving a spending breakdown.

“Drones are force multipliers on the modern battlefield,” said Ramesh Chandra Padhi, an executive at IG Defence, a builder of advanced unmanned aerial and short-range missile systems.

“The Indian army is following emergency or fast-track procurement to expedite the induction of drones on a very large scale,” the former senior army officer added.

India’s exploding drone industry

India has more than 600 firms making drones and components, with more than 100 focused on defence applications. The companies range from large players such as Adani Group, Larsen & Toubro and Tata Advanced Systems to startups like ideaForge, Newspace Research and Asteria Aerospace. They work on building reconnaissance, logistics, loitering munition, precision-strike and critical component systems.

In recent years, India has overhauled a typically slow defence procurement process to allow faster acquisition of drones, particularly after clashes with Pakistan exposed gaps in surveillance and strike capabilities.

New Delhi has started relying on emergency procurement powers and swifter efforts under the Defence Acquisition Procedure, compressing timelines to months instead of years.

At the same time, in its push to boost domestic manufacturing, it is giving priority to systems made at home. The government has also expanded schemes such as Innovations for Defence Excellence (iDEX) to fund prototypes and enable smaller firms to win initial orders and help scale up production quicker.

Published in Dawn, June 4th, 2026

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