India To Place $2 Billion Military Drone Order; Pakistan Clashes & Ukraine War Boosts Demand

India is on the verge of its largest-ever domestic military drone procurement, a move that signals a seismic shift in how the country intends to fight, and build, its way to battlefield dominance.

India is likely to order more than $2 billion worth of military drones from domestic firms this year, in its biggest such purchase. Reuters has reported this development, attributing this information to Drone Federation India, an industry body working closely with the government. Deliveries are expected over 18 to 24 months.

The plans represents a significant jump in value from recent government orders worth 30 billion rupees ($313 million) for tactical-class drones, said Smit Shah, president of the federation, which represents more than 550 companies.

"In the next phase, tactical drone procurements in India may exceed Rs. 200 billion, or more than $2 billion," Shah told Reuters.

Conflict as catalyst

India's push follows clashes with 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 accelerated adoption globally, driving down costs and reshaping battlefield tactics.

Ramesh Chandra Padhi, an executive at IG Defence, a builder of advanced unmanned aerial and short-range missile systems, called drones 'force multipliers on the modern battlefield,' adding that the Indian army is pursuing emergency and fast-track procurement to induct drones on a very large scale.

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

A booming domestic industry

India now 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.

New Delhi has started relying on emergency procurement powers and swifter efforts under the Defence Acquisition Procedure, compressing timelines to months instead of years, while giving priority to systems made at home.

The changes are reshaping India's drone industry, long dominated by small players, as better order visibility and policy support unlock funding and partnerships. Venture investment and tie-ups with larger defence firms have picked up, with companies ramping up manufacturing and research to fill rising military demand.

Apart from the big players, small firms will also benefit from this drone push. As reported earlier by Free Press Journal, Mumbai-based Jyoti Global Plast, which began as a packaging specialist, has transformed itself into a materials-first UAV technology partner, producing everything from high-precision components to complete surveillance platforms and industrial cleaning drones.

CFO Karan Shah told FPJ the company is localising previously imported UAV-critical components, including GNSS mounts, avionics housings, radar-compatible enclosures and FRP structural parts, to strengthen India's mission readiness and reduce dependency on foreign supply chains.