Illustration for representation. (© India Sentinels 2026–27)
New Delhi: India is set to place its largest-ever order for military drones worth more than $2 billion (over ₹20,000 crore) with Indian manufacturers. This is seen as a key moment in the country’s drive for self-reliance in unmanned aerial warfare, according to an exclusive Reuters report [archived link] published on Wednesday.
The disclosure came from Smit Shah, the president of the Drone Federation India (DFI), a prominent industry body that represents more than 550 companies and works closely with the government on drone policy and procurement. Shah told Reuters that the next phase of tactical drone acquisitions could exceed 200 billion rupees, or more than $2 billion, placing it well above any previous purchase of unmanned systems in India’s defence history.
“In the next phase, tactical drone procurements in India may exceed 200 billion rupees, or more than $2 billion,” Shah was quoted as saying.
The plans are reportedly in advanced stages, with deliveries expected to be completed within 18 to 24 months. The proposed order represents a sharp jump from recent government contracts worth roughly ₹3,000 crore ($313 million) for tactical-class drones – meaning the incoming procurement would be more than six times larger in value. The new purchases are likely to follow a fast-track acquisition route designed to meet urgent operational needs, Shah said.
Modern warfare realities
The scale and urgency of the proposed order is widely seen as a direct consequence of India’s own battlefield experience and the evolving nature of modern warfare globally. The Indian military’s use of unmanned systems during Operation Sindoor demonstrated both the effectiveness and the critical importance of drone technology in real-world combat scenarios.
The conflicts in Ukraine and West Asia have reinforced this lesson for militaries worldwide. In both theatres, cheap and plentiful tactical drones have reshaped battlefield dynamics, tilting the balance in favour of forces that can deploy them at scale. India’s armed forces have taken note.
A former senior Army officer familiar with the procurement process told Reuters that “the Indian Army is following emergency or fast-track procurement to expedite the induction of drones on a very large scale.”
Self-reliance in defence
A particularly significant aspect of this procurement is its exclusively domestic character. The proposed $2-billion order is expected to be placed entirely with Indian manufacturers, which would make it among the most consequential exercises in defence indigenization since the government launched its Atmanirbhar Bharat (self-reliant India) initiative.
The DFI, whose president made the statement to Reuters, represents the backbone of India’s civil and military drone ecosystem. With more than 550 member companies, the federation has been closely involved in shaping the government’s drone policy and procurement architecture.
This proposed procurement is also consistent with a broader momentum visible at the defence ministry. In March 2026, the Defence Acquisition Council (DAC), chaired by the defence minister, Rajnath Singh, approved capital acquisition proposals worth approximately ₹2.38 lakh crore ($24.85 billion). The approved items included transport aircraft, missile systems, and remotely piloted strike aircraft – underscoring the government’s intent to close multiple capability gaps across the armed forces simultaneously.
A strategic inflection point
Analysts and industry insiders have described the planned drone procurement as a strategic inflection point for India’s military modernization. Until recently, India’s unmanned systems inventory was dominated by foreign-origin platforms, including Israeli surveillance drones and American MQ-9B Predator-variant sea guardians acquired under government-to-government arrangements. The shift toward mass procurement from domestic sources signals a material change in both doctrine and industrial policy.
India’s drone industry has grown rapidly in the years following the government’s liberalized drone rules of 2021 and the subsequent production-linked incentive (PLI) scheme for drones introduced in 2022. The sector has attracted a new generation of startups alongside established aerospace firms, all of which are now positioned to compete for the massive contracts expected to flow from this procurement cycle.
The defence ministry has not officially confirmed the Reuters report, and no formal request for proposal has been made public as yet. However, given the DFI’s close working relationship with the government and Shah’s unambiguous statement, industry insiders regard the procurement as a near certainty.
If executed at the $2 billion scale projected, this single round of procurement would instantly transform India into one of the world’s largest domestic buyers of military drones – a milestone with profound implications not just for battlefield readiness, but for the long-term viability and global competitiveness of India’s rapidly growing unmanned systems industry.
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© India Sentinels 2026-27
