India May Miss Out on Indigenously Designed Long-Range Drones Due to Foreign Competition

Strategic Insights -

The Indian armed forces are set to issue tenders for the procurement of 87 medium altitude long endurance (MALE) drones, with a total order value of over ₹30,000 crore. The procurement is open to Indian companies only, with the aim of developing a domestic UAV manufacturing ecosystem. However, several foreign firms, including Israeli and American companies, have partnered with Indian companies to offer their products for the requirement. If no Indian company offers a locally designed and developed product, foreign origin platforms may be chosen for the contract.

Key Takeaways:

  • The Indian armed forces are looking to procure 87 MALE drones for reconnaissance and strike missions, with a total order value of over ₹30,000 crore.
  • The procurement is open to Indian companies only, with the aim of developing a domestic UAV manufacturing ecosystem.
  • Several foreign firms, including Israeli and American companies, have partnered with Indian companies to offer their products for the requirement.
  • Foreign origin platforms may be chosen for the contract if no Indian company offers a locally designed and developed product.
  • The winning companies will need to ensure that aerostructures, main parts, engines, and critical components are made indigenously or assembled in India.
  • The contract will be split between the two lowest bidders in a 64:36 ratio, with the lowest bidder getting the bigger share.
  • The winning companies will receive a 10-year contract for maintenance and support of the drones.
  • The procurement is expected to unlock a UAV manufacturing ecosystem in India, with a focus on indigenous design and development.

Statistics:

  • ₹30,000 crore: The estimated value of the procurement contract for 87 MALE drones.
  • 87: The number of MALE drones to be procured by the Indian armed forces.
  • 64:36: The ratio in which the contracts will be split between the two lowest bidders.
  • 10: The number of years for which the winning companies will receive a contract for maintenance and support of the drones.
  • 50%: The threshold for indigenous content required for the winning products.
  • 6: The short timeline within which trials for the project are expected to take place.

Sources:

  • [The Times of India, Author: Manu Pubby]