India is preparing to place its largest-ever military drone order, with planned purchases from domestic manufacturers expected to exceed $2 billion this year as New Delhi accelerates efforts to modernise its armed forces and adapt to rapidly changing battlefield realities. The move comes amid growing global demand for unmanned systems following conflicts in Ukraine, the Middle East and recent clashes between India and Pakistan.
The procurement plans are in advanced stages and could see deliveries completed within 18 to 24 months, according to Smit Shah, president of Drone Federation India (DFI), an industry body representing more than 550 companies that works closely with the government.
“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 the purchases are likely to proceed through a fast-track procurement route designed to meet urgent operational requirements.
The expected order would mark a sharp increase from recent government contracts worth about 30 billion rupees ($313 million) for tactical-class drones. Officials have not publicly confirmed the final value of the upcoming procurement, but industry executives describe it as a transformative step for India’s defence sector.
Drones Move to Centre Stage
India’s latest push follows the May 2025 confrontation with Pakistan, during which both countries deployed unmanned aerial vehicles on a large scale for the first time. Military planners viewed the clashes as a turning point that highlighted the offensive and surveillance capabilities of relatively low-cost drone systems.
The wars in Ukraine and Iran have further reinforced the importance of drones, reshaping military tactics and encouraging governments worldwide to invest heavily in autonomous and remotely operated platforms. Analysts say these conflicts have demonstrated how drones can provide intelligence, precision strikes and force protection at a fraction of the cost of traditional military assets.
In March, India’s Defence Ministry approved a broader procurement proposal worth about 2.38 trillion rupees ($24.85 billion) covering transport aircraft, missile systems and remotely piloted strike aircraft, though it did not disclose the specific allocation for drones.
“Drones are force multipliers on the modern battlefield,” said Ramesh Chandra Padhi, an executive at IG Defence and a former senior Indian Army officer.
“The Indian army is following emergency or fast-track procurement to expedite the induction of drones on a very large scale,” he added.
Domestic Industry Sees Major Opportunity
India’s drone ecosystem has expanded rapidly in recent years. The country now hosts more than 600 companies manufacturing drones and components, including over 100 focused on defence applications. Major industrial groups such as Adani Group, Larsen & Toubro and Tata Advanced Systems operate alongside emerging firms including ideaForge, Newspace Research and Asteria Aerospace.
These companies develop reconnaissance drones, loitering munitions, logistics platforms, precision-strike systems and critical components. New Delhi has simultaneously reformed defence procurement rules, shortened acquisition timelines and expanded initiatives such as Innovations for Defence Excellence (iDEX) to support domestic manufacturers and startups.
Industry executives say the government’s emphasis on indigenous production is attracting new investment and partnerships while helping firms expand manufacturing capacity. The planned $2 billion purchase is expected to accelerate that trend and further strengthen India’s ambition to build a self-reliant defence industry capable of meeting future military requirements.
