New Delhi. India’s ambitious plan to procure 87 Medium Altitude Long Endurance (MALE) drones worth nearly ₹30,000 crore faces a critical indigenous test, as foreign partnerships threaten to dominate the competition.
Despite the government restricting participation to Indian companies, the contest is increasingly being shaped by tie-ups with established global drone manufacturers. Several international firms—chiefly Israel’s Elbit Systems and the United States’ General Atomics—have swiftly allied with Indian defence manufacturers to pitch proven drone platforms. These systems, already operational abroad, will be modified to suit Indian mission requirements. Manufacturing is expected to take place in India, with efforts to ensure over 50% localisation to meet the Defence Ministry’s Make in India standards.
The looming issue is whether a wholly indigenous long-range drone can compete within the accelerated schedule. With trials expected to begin within six months, Indian developers may struggle to match the readiness levels of foreign-origin systems. Should no locally designed platform demonstrate maturity, the Ministry of Defence is likely to award contracts for modified foreign designs with significant local production.
To foster long-term manufacturing capacity, the Defence Ministry has decided to split the mega drone order between the two lowest bidders in a 64:36 ratio. The lowest bidder will secure the larger share, ensuring competitive pricing and greater industrial resilience. The approach aims to create two parallel domestic production lines, enabling India to scale up drone manufacturing in future contingencies.
A stringent clause in the tender specifies that aero-structures, flight-critical assemblies, and engine integration must be carried out within India. Even the engines for the drones must be assembled and tested domestically. Indigenous systems for navigation, telemetry, and satellite communications are mandatory, reinforcing defence supply chain security and reducing dependency on imports.
The selected companies will receive ten-year maintenance contracts to ensure long-term operational support for the fleet. The sustained engagement will help nurture local skillsets in UAV maintenance, payload integration, and advanced manufacturing. The deal structure is also expected to drive technology transfer in propulsion, avionics, and composite materials.
This procurement represents a decisive opportunity for India’s nascent UAV industry. A successful indigenous design would cement India’s capability in producing advanced reconnaissance and strike platforms, while dependence on foreign-origin designs may delay true self-reliance in unmanned combat systems. The coming months will reveal whether domestic innovation can prevail against well-established global competition.
