In a major boost to India’s drone manufacturing sector, the Defence Ministry has approved a ₹30,000 crore contract for the procurement of 87 indigenously built medium altitude long endurance (MALE) drones. The deal, cleared by the Rajnath Singh-led Defence Acquisition Council (DAC), is aimed at enhancing India’s capabilities in reconnaissance, electronic warfare, and precision strike missions.
The order will be split between two Indian manufacturers, who will set up separate production facilities to cater to both domestic and export demands. The contract will be divided in a 64:36 ratio between the two lowest bidders, with the primary contractor receiving the larger share.
The armed forces are expected to issue an expression of interest shortly, inviting companies to participate in trials before final commercial negotiations. As per the contract terms, the selected firms must ensure local manufacturing of aerostructures and key components, assemble and test engines in India, and produce critical systems such as electro-optical payloads and satellite communication equipment domestically to secure the supply chain.
Officials believe this arrangement will not only accelerate drone production but also position India as a competitive exporter in the global UAV market, with the dual-facility model enabling rapid scaling of production when required.
