India's defence drones: Powered by high-end manufacturing tools
India's recent military operation, Operation Sindoor, marked a pivotal shift in the strategic role of indigenous drones. These systems provided real-time surveillance, resisted electronic warfare, and enabled precision targeting, showcasing India's growing frontline capabilities while also exposing significant vulnerabilities. With nearly 70% of commercial drone components still imported, mainly from China, India remains dependent on external supply chains. This disconnect between operational success and manufacturing reliance highlights an urgent priority: converting battlefield effectiveness into backend self-reliance. Building a robust and competitive domestic drone ecosystem is not merely a technological goal but a strategic necessity. This image shows a damaged building at Nur Khan airbase after Indian airstrikes. Prior to this, Pakistan used drones and heavy artillery to hit civilian areas across the LoC, resulting in casualties.(via REUTERS)
Countries such as the US, China, and Turkey have built strong drone ecosystems by aligning defence goals with industrial policies. The US draws on its mature defence-industrial base and ongoing research and defence (R&D). China benefits from State-backed manufacturing clusters and aggressive export initiatives. Turkey advances domestic production through public-private partnerships and international collaboration. These models offer useful lessons for India. To stay competitive in a drone market projected to exceed $50 billion by 2030, India must establish clear policy, scale industrial capacity, and define a cohesive national strategy.
India's drones are evolving beyond passive surveillance tools. In Operation Sindoor, they supported precision strikes and shaped tactical decisions, establishing unmanned systems as central to modern combat. The government responded with emergency procurement, revised defence policies, and increased support for domestic drone makers. These steps indicate a strategic shift. India aims not just to use drones, but to design, build, and sustain them locally.
However, assembling drones addresses only part of the need. Developing effective UAVs demands a strong manufacturing base built on precision engineering, high-performance materials, and a skilled workforce. Key components like propulsion units, airframes, and sensor housings must meet rigorous aerospace standards. Materials such as titanium and Inconel provide necessary durability and heat resistance but are challenging to work with. Manufacturing them requires advanced technologies including five-axis machining, hybrid additive-subtractive manufacturing, and electrical discharge machining. Securing the domestic supply chain for UAV components is essential, not just for industry, but for national security. In times of conflict, disruptions in foreign supply could compromise defence operations.
Indian UAV firms are increasingly integrating advanced five-axis CNC machines and hybrid 3D printing tools to meet the demands of defence-grade component manufacturing. This reflects a broader shift in India's precision engineering landscape, demonstrating how access to advanced tools can transform domestic manufacturing.
India plans to invest about $470 million in UAVs over the next 12 to 24 months, almost triple its pre-conflict spending levels. While drone assembly units have expanded, India still imports many of the subsystems and parts. Valued at $654 million in 2024, the Indian drone market is expected to more than double to $1.43 billion by 2029, growing at a compound annual growth rate of 17%. In the same period, the number of drones in India is projected to increase from 10,803 units to over 61,000. Behind this growth is a thriving ecosystem of innovators and businesses.
Beyond defence, drones are reshaping civilian sectors such as agriculture, mining, logistics, and emergency response. Their applications in crop monitoring, surveying, and disaster relief increase efficiency and unlock new revenue and job opportunities. By supporting real-time data collection and precise operations, drones can modernise traditional industries and drive rural economic growth. Dual-use capabilities help Indian manufacturers scale more quickly, access wider markets, and support sectors like telecom and public safety, boosting the economic impact of drone technology.
A skilled workforce is essential to realising this potential. Indian MSMEs and startups are innovating in areas like Artificial Intelligence (AI)-based navigation and propulsion systems. However, their progress depends on access to advanced tools, reliable financing, and targeted training. Centres of Excellence, industry-academia partnerships, and vocational skilling programmes can help prepare drone engineers, machinists, and technicians. Structured apprenticeships and continued education will keep India's drone manufacturing competitive with global peers.
Closing the capability gap requires collaboration among defence R&D institutions, machine tool manufacturers, and UAV makers. Policymakers must streamline procurement, expand capital access, and incentivise domestic sourcing. Infrastructure such as drone parks, testing corridors, and innovation zones can support scaling efforts. Recent steps like the Drone Directorate and production-linked incentives offer a foundation. India now needs faster and more coordinated execution.
India has a limited but critical window to lead in the global drone economy. To seize this opportunity, the country must prioritise three enablers: Scaling precision manufacturing capabilities, strengthening domestic supply chains for core components, and investing in workforce development through targeted skilling initiatives and technical education. Scaling up precision manufacturing will strengthen defence readiness and contribute to the $5 trillion economy goal. If India sustains its momentum, it can emerge as a global hub for drone production and services. Precision engineering is not just a technical strength. It is the bedrock of strategic autonomy. While drones operate in the skies, national power is built on the ground.
This article is authored by Anuj Budhiraja, vice president, Phillips Additive.
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