Indian Drone Industry: Confronting Chinese Checkers

The trajectory of India's burgeoning drone industry is intrinsically interwoven with the threads of both promise and peril. Developing indigenous components has become a puzzle of expertise gaps, escalated costs, and limited alternatives. With approximately 70% of drone supply chain items originating from China, the task of finding alternative sourcing has become an intricate undertaking

By Navya Simran Chhabra

Opinion

In the ever-evolving landscape of modern military security and warfare, the emergence of Unmanned Aerial Vehicles (UAVs), commonly referred to as ‘drones’, has ushered in a new era of strategic possibilities. These remotely operated devices have revolutionised the defence ecosystem, offering a spectrum of capabilities that have reshaped traditional approaches to surveillance, combat, and reconnaissance. As technology advances and warfare tactics evolve, drones have taken centre stage as versatile tools in the realm of defence.

Drones have emerged as pivotal tools in the arsenal of nations worldwide, and India is no exception. Their ability to execute diverse tasks has positioned them at the forefront of military operations. From conducting surveillance and carrying out combat missions to delivering critical supplies and gathering invaluable intelligence, drones have transitioned from mere novelties to indispensable assets. Their deployment has grown beyond conventional warfare scenarios, finding applications in disaster response, border security, and more.

Drones in Defending Borders

The strategic significance of drones became evident during the Kargil War, where Israeli-made Heron and Searcher drones played instrumental roles in photo reconnaissance and target data collection along the volatile Line of Control. These instances underscored their value in enhancing situational awareness and enabling informed decision-making. Fast forward to the present day, drones have become essential companions to soldiers, providing real-time data from remote and hostile areas.

A recent Reuters report unveiled India’s stance to preclude the integration of Chinese components into domestic military drones due to concerns over potential security vulnerabilities. These concerns encompass apprehensions about communication systems, cameras, operating software, and more

Over time, the role of drones in India’s defence strategy has only expanded. The deployment of Heron drones to gather intelligence on JeM camps located near the border, preceding the Balakot Air Strike in 2019, demonstrated their role in shaping tactical operations. Furthermore, domestically crafted MR-20 drones, courtesy of Raphe Mphibr, have demonstrated their utility in transporting essential supplies, emergency medical aid, and weaponry to troops stationed in remote and challenging areas such as Ladakh. Their capabilities extend beyond the battlefield, playing an active role in safeguarding national security.

Fuelling the momentum in the Indian drone sector is a wave of emerging start-ups that are driving remarkable progress. Among these, Aero360 stands out with its strategic partnerships with the Indian Coast Guard and Indian Army, augmenting surveillance capabilities to new heights. Another promising entrant, Vinveli, has introduced the Vero drone, showcasing remarkable versatility, from explosive deployment to supplying crucial resources in combat zones. IdeaForge, a trailblazer, has etched its name by independently conceiving and manufacturing Vertical Take-off and Landing (VTOL) UAVs, empowering the Indian Armed Forces with cutting-edge innovations.

Impact of the Import Ban

Since 2020, India has embarked on a trajectory of progressively tightening restrictions on surveillance drone imports, particularly those involving Chinese-made components, a move underscored by official documents. A recent Reuters report unveiled India’s stance to preclude the integration of Chinese components into domestic military drones due to concerns over potential security vulnerabilities. These concerns encompass apprehensions about communication systems, cameras, operating software, and more.

The import ban is not without its challenges. The development of indigenous components presents hurdles due to expertise gaps, increased costs, and limited alternatives. Y. Dilip, director of Aeronautical Development Establishment (ADE), has voiced concerns about the unavailability of engines for indigenous unmanned systems. Approximately 70% of supply chain items have Chinese origins, making alternative sourcing a complex puzzle, compounded by the higher costs associated with non-Chinese components.

Varied Perspectives

Diverse viewpoints surround the import ban. Ankit Mehta, Co-founder of IdeaForge Technology, commends the action, emphasising data security as a driving factor. He underscores the importance of safeguarding national sovereignty and views the government’s cautious approach towards equipment from nations sharing land borders with India as a prudent measure. On the other hand, Sameer Joshi, the founder of NewSpace Research and Technologies, highlights the supply chain’s dependency on China, revealing that approximately 70% of items originate from there. RK Narang, a drone expert at the Manohar Parrikar Institute for Defence Studies and Analyses, discusses the potential cost implications of the ban, suggesting that procurement from China, if replaced by domestic production, could lead to a 50% cost increase.

Sameer Joshi, the founder of NewSpace Research and Technologies, highlights the supply chain’s dependency on China. RK Narang, a drone expert at the Manohar Parrikar Institute for Defence Studies and Analyses, discusses the potential cost implications of the ban, suggesting that procurement from China, if replaced by domestic production, could lead to a 50% cost increase

The fiscal year 2023-24 is poised to witness significant investment in military modernisation, with India dedicating a substantial $19.77 billion to the cause, with 75% of it allocated to the domestic industry. Finance Minister Nirmala Sitharaman’s commitment to channel a quarter of the defence research and development budget to the private sector signifies a resolute push towards nurturing local manufacturing. This proactive approach aims to bear fruit in the future, compelling Indian manufacturers to invest in reverse engineering to master the intricate production process of critical components domestically.

Final Thoughts

In the ever-evolving tapestry of Indian drone start-ups and the intricate reverberations stemming from the ban on Chinese drone component imports, a pivotal and transformative chapter unfolds within the annals of India’s defence narrative. The nuances of this chapter encapsulate not only the ascent of innovation but also the precipice of disruption. Amidst this complex confluence of events, the nation finds itself at a crossroads, intricately navigating the delicate equilibrium between the ardent pursuit of technological self-reliance, the unyielding compulsion of safeguarding national security, and the unapologetic practicalities of economic dynamics.

It is a landscape that simultaneously exudes potential and harbours apprehensions, where the pursuit of autonomy stands juxtaposed against the inherent challenges of carving a niche in the global technological arena. The symphony of progress and setbacks plays out vividly, unfurling a canvas painted with audacious aspirations but also mired by the shadows of constraints.

As this intricate dance unfolds, the industry stands poised at a precipice – where the realm of innovation meets the litmus test of practicality. The ban on Chinese drone components casts a formidable shadow, revealing fault lines and unmasking vulnerabilities that punctuate the journey towards self-sufficiency. The intricate web of formidable challenges spans the spectrum, from the acute dearth of indigenous expertise that threatens to stall the indigenous development process, to the daunting spectre of escalated costs that looms large and undermines the very foundations of viability.

In this audacious saga, the allure of forging an indigenously driven drone ecosystem is counterbalanced by the stark reality that nearly 70% of the supply chain’s threads trace back to China. The quest for alternative sourcing becomes a labyrinthine expedition, entangling stakeholders in a complex puzzle where the pursuit of security collides headlong with the stark pragmatism of financial considerations.

Thus, the evolving narrative of India’s drone industry is a testament to the nation’s intricate dance with destiny. It is a narrative marked by the bold pursuit of self-reliance, by the strategic embrace of security, and by the pragmatic acknowledgement of the economic stakes. Each twist and turn in this gripping narrative adds a layer of complexity and a stroke of resilience, propelling India’s drone industry forward while also casting shadows that demand resolution. The story is far from static; it is an evolving script that is yet to reach its denouement, inviting us to witness the unfolding of a chapter that holds both the promise of progress and the gravity of challenges.

The writer is a policy and trade specialist with Invest India. She is an acute observer of the Indian Aerospace and Defence sector, with an eye for emerging iDEX start-ups and MSMEs. The views expressed are of the author and do not necessarily reflect the views of Raksha Anirveda