Foreign-made drones likely to edge out local designs in Rs 30,000-cr military deal: Report

The project is being viewed as a crucial test of India’s ‘Atmanirbhar Bharat’ mission, balancing the need for advanced military technology to achieve genuine self-reliance in defence manufacturing. (Representative image)

India is preparing to launch a Rs 30,000-crore tender for 87 long-range Medium Altitude Long Endurance (MALE) drones for its armed forces. Experts, however, fear that foreign designs could edge out homegrown innovation, as per an Economic Times report.

The Ministry of Defence plans to invite bids only from Indian companies to boost the domestic unmanned aerial vehicle (UAV) ecosystem, states the report. However, global defence giants such as Israel’s Elbit Systems and the US-based General Atomics have already partnered with Indian firms to offer their proven platforms, tailor-made for Indian use.

These joint ventures are expected to set up local production lines, ensuring over 50 percent indigenous content, it has been learnt from the report.

With trials likely to begin within six months, the short timeframe is likely to act as a disadvantage for Indian firms developing drones indigenously. In such a case, foreign-origin platforms modified to meet local standards are anticipated to dominate the order.

To promote competition and sustain production capacity, the Defence Ministry has decided that the two lowest bidders will share the contract in a 64:36 ratio, with the lowest bidder receiving the larger share, states the Economic Times.

Both firms will also be awarded 10-year maintenance contracts to ensure long-term operational support.

Bidders must manufacture critical components, including aerostructures, engines, electro-optical payloads, and satellite communication systems, within India, states the report. Additionally, indigenous navigation and communication systems will be integrated to strengthen supply chain resilience and national security.

The project is being viewed as a crucial test of India’s ‘Atmanirbhar Bharat’ mission, balancing the need for advanced military technology to achieve genuine self-reliance in defence manufacturing.