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The biz of drone power: Startups, traditional giants fuel India's arsenal

Whether it's the fight between Israel and Hamas in the Gaza Strip, Russia's continuing invasion of Ukraine, or the military conflict between India and Pakistan last week, drones and unmanned aerial vehicles have proved crucial for gaining strategic objectives. India's Operation Sindoor against terrorist infrastructure in Pakistan showed its capability in drone warfare. SkyStriker, a suicide drone made by a company in Bengaluru in partnership with an Israeli firm, and Harop, a kind of Israel-made 'loitering munition', made headlines. India has built its drone arsenal through global tieups and policy reforms like a production-linked incentive (PLI) scheme and an import ban from 2021. India first used military drones, for surveillance, during the Kargil war in 1999. In 1849, Austria became the first to use unmanned balloons with explosives during the siege of Venice. Industry experts say that India is going to be one of the fastest-growing global markets for drones: for civil and defence purposes. The country's drone market revenue will expand from nearly $500 million in FY24 to $11 billion by FY30, according to estimates made by the Drone Federation of India. "With logistics and a lot of strategic sectors of defence being unlocked, this is going to be a realistic target. Out of this, defence [drone revenue] will be the highest at around 30 per cent, logistics around 25 per cent, and agriculture around 20 per cent. This $11 billion includes drone sales, component sales, services and the leasing ecosystem," said Smit Shah, president of the Drone Federation of India (DFI). There were hardly any Indian companies in the drone sector five years ago but there are 550 now. Out of this lot, more than 100 companies are specifically working in the defence sector, according to DFI's data. Besides startups, traditional industry majors like Adani, Tata, Murugappa, and Paras have joined the fray through global tie-ups. SkyStriker is manufactured by Alpha Design Technologies in Bengaluru in partnership with Israel's Elbit Systems. Adani Defence Systems and Technologies has a 26 per cent stake in Alpha Design. Tata Advanced Systems supplies to the Indian military long-range 250 km autonomous suicide drones capable of operating from altitudes of 10,000 feet. Paras Defence & Space Technologies has joined hands with HevenDrones in Israel to come up with hydrogen-powered and mission-specific drones. 'Anti-drone systems are passive in detection. [The system] detects and uses forms of kinetic force to neutralise enemy drones,' said Sambit Parida, co-founder and chief technology officer of IG Drones, a prominent player in the technology. Anti-drone systems spoof their locations, making them the first level of deterrence against enemy drones. GPS spoofing involves generating and transmitting fake signals to trick a drone into believing it's receiving a genuine signal, producing false positioning data that leads to inaccurate navigation. Parida said that besides the military, advanced drones are of use in policing and border security. Gurugram-based IG Drones makes Jaga, an advanced surveillance drone optimised for security and monitoring. Its other products include Skyhawk VTOL and Skyfire. The Indian Air Force (IAF) in March signed a contract with IG Drones to adopt the company's Bluetooth Low Energy (BLE) system to track and manage tools at airbases. As part of India's plans for self-reliance in defence technology, BLE will be first used at the Gwalior airbase before its planned expansion to other IAF and Army facilities. "Recent conflicts have proven that unmanned systems provide real-time intelligence and operational flexibility. This shift is being driven by rapid advances in AI (artificial intelligence), autonomy, and sensor technology, making drones increasingly vital for intelligence, surveillance, reconnaissance (ISR), and combat roles," said Ashok Kumar Gupta, executive chairman of Optiemus Group. The company last month launched four advanced drones providing solutions for a wide range of defence, surveillance, and reconnaissance operations. "As AI and autonomous systems evolve, drones are becoming even more versatile and strategic, enabling armed forces to respond swiftly to emerging threats and operate in environments that are inaccessible or too dangerous for humans," said Gupta.