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Localisation to Boost India's Drone Industry

BW Businessworld

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May 31, 2025

Backed by war validation and rising investor confidence, India's drone sector is set to take off in a big way. But can it convert ambition into global leadership?

- By Resham Suhail

Localisation to Boost India's Drone Industry

INDIA'S defence drone ecosystem is rapidly maturing, driven by technological advancements, policy support, and a strong push for self-reliance in critical defence equipment. And that the Indian Armed Forces are increasingly deploying drones to enhance their surveillance, reconnaissance, and combat capabilities, was recently evident during Operation Sindoor, where AI-powered drones like the Harop and Heron were actively used for precision strikes and target tracking.

India’s defence drone market is witnessing robust growth and is expected to grow to cross Rs 50,000 crore by 2030, at a compound annual growth rate of over 20 per cent. This expansion is being driven by the government's focus on indigenous production, reduced dependence on imports, and the growing relevance of unmanned aerial systems in modern warfare.

To accelerate the indigenised growth of defence drones in India, policymakers must address several critical questions. How can procurement policies be simplified and made more transparent to ensure faster adoption of Indian-made drones by the armed forces? What measures can be taken to bridge the gap between prototype development and large-scale production, especially for startups and MSMEs? How can India develop a robust ecosystem for drone components—such as engines, sensors, and communication systems—to reduce reliance on foreign suppliers? And finally, what kind of long-term funding, incentives, and export support can be provided to make Indian defence drone manufacturers globally competitive?

Drone Boom

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