India is preparing to launch a ₹30,000-crore (US$ 3.4 billion) tender for 87 long-range Medium Altitude Long Endurance (MALE) drones to strengthen its armed forces’ surveillance and strike capabilities. However, according to a report by The Economic Times, foreign-origin designs may edge out indigenous platforms, even though the Ministry of Defence (MoD) intends to invite bids only from Indian companies to promote the domestic unmanned aerial vehicle (UAV) ecosystem.
Global Collaborations Likely to Dominate
Despite the Make-in-India framework, several foreign defence majors—including Israel’s Elbit Systems and US-based General Atomics—have partnered with Indian firms to offer proven, combat-tested UAV systems tailored for Indian operational requirements.
These joint ventures are expected to establish local production lines with over 50% indigenous content, aligning with the government’s localisation mandate.
Tight Timelines Challenge Indigenous Developers
With flight trials likely to commence within six months, experts caution that the short development window could disadvantage Indian firms still working on indigenously designed MALE drones. As a result, foreign-origin platforms modified to meet Indian standards may capture the majority of the order.
Contract Sharing and Local Manufacturing Clauses
To ensure competition and maintain production capacity, the MoD has reportedly decided that the two lowest bidders (L1 and L2) will share the contract in a 64:36 ratio, with the lowest bidder receiving the larger share.
Both winning firms will also be awarded 10-year maintenance contracts to provide long-term operational and technical support.
Bidders are required to manufacture critical components—such as aerostructures, engines, electro-optical payloads, and satellite communication systems—within India. Indigenous navigation and communication systems will also be integrated to strengthen supply chain security and support India’s Atmanirbhar Bharat vision.
Strategic Significance
The MALE drone acquisition programme is seen as a crucial test of India’s ability to balance advanced defence capability acquisition with genuine self-reliance in military manufacturing.
While foreign collaborations could help accelerate capability deployment, the outcome of this tender will likely shape the future trajectory of India’s UAV ecosystem and its broader defence indigenisation goals.
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