Driven by rising regional and global conflicts, India is preparing to place its largest-ever order for military drones this year, with plans to purchase more than $2 billion worth of unmanned systems from domestic companies. An industry organization working closely with the government confirmed the impending acquisition to Reuters.

The massive procurement is in its final planning stages, with deliveries anticipated over a period of 18 to 24 months. Smit Shah, president of Drone Federation India—a group representing over 550 companies—noted this represents a major surge from recent government purchases of tactical-class drones, which totaled 30 billion rupees ($313 million).

“In the next phase, tactical drone procurements in India may exceed 200 billion rupees, or more than $2 billion,” Shah stated. He indicated that the upcoming orders will likely utilize a rapid procurement pathway designed for urgent operational demands, requiring deliveries within a 24-month window.

The defense ministry has not immediately responded to requests for comment regarding the anticipated purchase, which was first reported by Reuters.

India’s aggressive drone strategy follows clashes with its arch-rival Pakistan in May of last year. During those border skirmishes, both militaries deployed large volumes of unmanned aerial vehicles for the first time, demonstrating the offensive capabilities of inexpensive drones. Additionally, warfare in Ukraine and Iran has accelerated global drone integration, fundamentally reshaping battlefield tactics and driving down manufacturing costs.

Earlier in March, India’s defense ministry greenlit a broader 2.38 trillion rupee ($24.85 billion) proposal to acquire missile systems, transport planes, and armed drones, categorized as “remotely piloted strike aircraft.” A specific spending breakdown was not provided.

“Drones are force multipliers on the modern battlefield,” remarked Ramesh Chandra Padhi, an executive at IG Defence, a company that builds advanced unmanned aerial systems and short-range missiles. The former senior army officer added, “The Indian army is following emergency or fast-track procurement to expedite the induction of drones on a very large scale.”

India’s domestic industry currently features over 600 businesses manufacturing drones and component parts, with more than 100 dedicated strictly to defense applications. These manufacturers range from major conglomerates like Tata Advanced Systems, Larsen Toubro, and Adani Group, to emerging startups such as Asteria Aerospace, ideaForge, and Newspace Research. Together, they are developing systems for reconnaissance, precision-strike, logistics, loitering munitions, and critical components.

To overcome gaps in strike and surveillance capabilities exposed during the Pakistan clashes, India has significantly reformed its historically sluggish defense acquisition protocols. New Delhi is increasingly relying on the Defence Acquisition Procedure and emergency procurement powers to shrink purchasing timelines from years to merely months, while explicitly prioritizing domestically produced systems.

The government has also expanded initiatives like Innovations for Defence Excellence (iDEX) to finance prototypes and help smaller businesses secure initial contracts to scale their production. Concurrently, the defense ministry has relaxed testing regulations, broadened procurement access for private startups, and encouraged the armed forces to utilize interim and repeat orders so that developers can quickly refine their products.

According to DFI’s Shah, these sweeping changes are entirely reshaping an Indian drone sector previously dominated by smaller enterprises. The promise of clear order visibility and strong policy backing has catalyzed fresh capital and partnerships. Venture investments and joint ventures with larger defense corporations have accelerated, allowing domestic companies to drastically ramp up research and manufacturing to meet the military’s surging demand.