From Armenia to the United States, Interest in Indian Drone and Anti-Drone Technologies Grows; Expectations of Billions in Revenue
Indian drone and anti-drone innovations were prominently featured at the recently held air show, Aero India-2025. Nations from the Caucasus, Middle East, Southeast Asia, and Africa presented a list of requirements to enhance their military capabilities centered around unmanned systems.
One Indian firm plans to establish a production facility in the U.S. to tap into the NATO market. During Aero India-2025, the display of unmanned systems significantly surpassed that of fighter aircraft.
Countries around the globe are investigating the solutions provided by Indian firms, as many of these technologies have been adopted by the Indian armed forces.
In the past few years, Indian military forces have allocated over Rs 3,000 crore (around $350 million) towards acquiring close to 2,500 military drones. The Indian drone sector is projected to grow to a multi-billion dollar industry in the coming decade, with estimates ranging from USD 4 billion to USD 40 billion.
The Indian government has been actively encouraging domestic drone production through programs like the Production-Linked Incentive (PLI) initiative and updated regulations such as the Drone Rules, 2021.
A significant aspect of the Union Budget for 2025-26 was the Rs 57 crore ($6.5 million) funding for the PLI scheme aimed at enhancing drone and drone component manufacturing. This represents a substantial 72% increase from the previous year’s allocation of Rs 33 crore. Nevertheless, local drone manufacturers are advocating for additional financial support.
At present, around 50-60 percent of the components used in drones within India are sourced from abroad; the new initiative aims to change this by providing incentives to elevate localization to approximately 70 percent of total value.
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