India is set to launch a $234 million initiative to bolster its domestic drone industry, aiming to reduce dependence on foreign components following a four-day clash with Pakistan in May 2025. The conflict, sparked by India’s allegations of Pakistan’s involvement in the Pahalgam attack, marked the first large-scale use of drones by both nations, escalating tensions and highlighting India’s reliance on imported parts, particularly from China. The three-year, 20 billion Indian rupees program will support the production of drones, components, software, and counter-drone systems, targeting 40% local sourcing by 2028.
The initiative, backed by India’s civil aviation and defense ministries, responds to the growing drone capabilities of Pakistan, supported by China and Turkey. Over 600 Indian drone companies are expected to benefit, with additional support from low-cost loans through the Small Industries Development Bank of India. Posts on X reflect mixed sentiments, with some praising the move to strengthen local manufacturing, while others question the reactive nature of India’s defense policies. The program builds on a modest 2021 scheme, aiming to position India as a key player in the global drone market amid heightened regional competition.
Published in SouthAsianDesk, July 4th, 2025
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