Is India on the verge of its biggest-ever drone deal? A proposed $2 billion procurement aims to boost military capability while strengthening domestic manufacturing.
India is preparing to place military drone orders worth more than $2 billion with domestic manufacturers, in what is expected to be the country’s largest procurement of unmanned aerial systems to date, according to industry estimates and reports.
The acquisition programme, which is understood to be at an advanced stage, could exceed ₹200 billion and may be executed through a fast-track procurement process to address urgent operational requirements. Deliveries are expected to be completed within 18 to 24 months.
If approved, the purchase would significantly surpass recent government acquisitions of tactical-class drones valued at around ₹30 billion. The planned orders are part of India’s wider effort to modernise its armed forces and strengthen operational preparedness amid evolving security challenges.
The growing military importance of drones has been reinforced by their extensive deployment in conflicts, including the Russia-Ukraine war since 2022 and tensions involving Iran. Unmanned systems have increasingly been used for surveillance, battlefield intelligence, precision strikes and other combat operations, while advances in technology have expanded their capabilities and accessibility.
India’s own military planning has also been influenced by recent hostilities with Pakistan, during which drones were employed extensively, highlighting their role in both offensive and defensive operations.
According to Smit Shah, president of Drone Federation India, the next phase of tactical drone procurement could exceed ₹200 billion, equivalent to more than $2 billion.
Industry officials say the armed forces are increasingly turning to accelerated and emergency procurement mechanisms to rapidly induct drones for missions ranging from reconnaissance and logistics support to loitering munitions and precision-strike operations.
The proposed acquisition is also aligned with the government’s drive to expand indigenous defence manufacturing. India now has more than 600 drone and component manufacturers, including established defence firms and emerging startups.
The move comes months after the Defence Acquisition Council approved defence procurement proposals worth approximately ₹2.38 trillion in March 2026, signalling continued momentum in the country’s broader military modernisation programme while providing a potential boost to the domestic drone industry.
