India Defense UAV Market
Automation and technological advancements in the defense sector have opened new avenues for the military. Unmanned Aerial Vehicles (UAVs) – known for their use in reconnaissance, surveillance and for carrying out high risk operations are now a defining military strength. The first reported use of UAV was the 2001 drone airstrikes by U.S. in Afghanistan. Since then the U.S, Israel and China have become the largest producers and exporters of UAVs. UAVs were primarily conceived to decrease the human cost of war and now they provide air-borne strategic might in warfare, accordingly countries are strengthening their arsenal with these autonomous, robotic weapon systems.
Indian UAV Industry
Indian Military acquired UAVs from Israel which were then used in Kargil War. Indian armed forces, at present have 200+ Medium Altitude Long Endurance (MALE) Searcher and Heron UAVs of Israeli origin and a few HAROP UAVs, Meanwhile, India’s state-run Defense Research and Development Organization (DRDO) and a few private firms are developing indigenous UAVs.
U.S export to India
India was designated as a ‘Major Defense Partner’ by the Missile Technology Control Regime (MTCR) to make drone exports easier to India. The United States is a top drone supplier to Indias’s defnse and paramilitary forces. Companies such as General Atomics of San Diego have had success in India.
Indigenous manufacturing
To that end, DRDO has developed a notable domestic arsenal. The domestic fleet of UAVs includes Lakshya, Nishant, Aura and Rustom. Among private manufactures, Mumbai-based ideaForge has been awarded a contract worth $20 million by the Indian Army for their SWITCH Drones. Adani Defence & Aerospace and Israeli firm Elbit Systems formed a joint venture in 2018, to form the first UAV manufacturing facility of India. Local firm Asteria Aerospace & software not only manufactures drones but also the software required for operation. This policy also sets a clear mandate that drones with ISR capabilities be procured from the domestic market.
Way Forward
U.S companies prefer to sell into India via the Foreign Military Sales (FMS) route and the Indian government generally prefers to buy via the Direct Commercial Sales (DCS) route. Both are possible. In recent years, tThe government of India has made FDI in defense simpler as part of ‘Make in India’ strategy. Foreign manufacturers can figure out a middle ground through joint ventures to tap into UAV market. Although India is ambitious and inclining toward indigenous production, it still requires improvement in research and development which are a prerequisite for stellar UAV production. The market is lucrative right now and could be tapped into with relative ease as India looks forward to expanding the market.
