Context

• India's planned $2 billion investment in domestically manufactured drones represents a significant milestone in defence modernisation and the promotion of indigenous manufacturing.
• Beyond strengthening the domestic defence industry, it reflects a broader shift in military strategy from reliance on expensive platforms such as fighter aircraft and tanks toward smaller, cheaper, and more attritable systems.
• However, maximising the benefits of this investment requires reforms in the existing procurement system, which was designed primarily for long-life military assets rather than rapidly evolving drone technologies.

The Changing Nature of Modern Warfare

• Rise of Cost-Effective Drone Warfare
  • Recent conflicts have demonstrated the growing importance of micro drones, nano drones, and other low-cost unmanned systems.
  • Countries such as Iran, Russia, and Ukraine have effectively used large numbers of affordable drones to achieve military objectives.
  • A key advantage of drones lies in their favourable cost-benefit ratio. In many cases, the cost of intercepting a drone exceeds the cost of manufacturing it.
  • Consequently, military effectiveness increasingly depends on the ability to deploy large numbers of adaptable and expendable systems rather than a limited number of expensive platforms.
• Increasing Relevance of Attritable Systems
  • The battlefield is witnessing a shift from preserving every military asset to accepting the loss of low-cost systems that can be rapidly replaced.
  • This trend has made attritable systems a central component of contemporary military strategy.

Innovation Through Civil-Military Collaboration

• Role of Civilian Technology
  • Modern drone innovation is closely linked to advances in civilian technology.
  • Commercial drones can be modified for military applications at relatively low cost, creating opportunities for rapid innovation.
  • Ukraine's use of first-person-view (FPV) drones equipped with warheads demonstrates how commercially available technologies can be adapted for combat purposes.
  • Such developments blur the distinction between civilian and military innovation.
• Importance of Research and Development Ecosystems
  • The growth of China's drone industry highlights the value of collaboration among industry, academia, and the military.
  • Strong research and development (R&D) networks facilitate technological innovation, faster product development, and greater adaptability to changing operational requirements.

Challenges in Tactical Drone Procurement

• Rapid Technological Obsolescence
  • Unlike conventional military platforms that remain relevant for decades, tactical drones face rapid obsolescence.
  • Advances in electronic warfare (EW), signal interception, and jamming technologies can render drone systems ineffective within a short period.
  • Adversaries often adapt quickly to new drone technologies, requiring frequent modifications and upgrades.
  • The replacement of radio communication systems with fibre-optic cables in Ukraine illustrates the need for continuous innovation in response to evolving threats.
• Limitations of Traditional Procurement Models
  • Traditional procurement frameworks are largely transactional, assuming that military requirements can be fulfilled through one-time purchases.
  • While suitable for tanks and fighter aircraft, this model is inadequate for technologies that require constant updates and improvements.

India's Existing Procurement Framework

• Positive Reforms
  • India has introduced several measures to address emerging technological challenges:
    • The Defence Acquisition Procedure (DAP) permits procurement of commercial-off-the-shelf (COTS) systems.
    • The Defence Procurement Manual (DPM) provides financial flexibility for repairs and upgrades.
  • Existing policies recognize the need for modernization and technological adaptability.
  • These reforms represent important steps toward a more responsive procurement framework.
• Remaining Gaps
  • Despite these improvements, procurement processes continue to focus primarily on acquiring products rather than sustaining capabilities.
  • The emphasis remains on transactions rather than long-term technological partnerships.

Towards a Partnership-Based Procurement Model

• Managed Service Contracts
  • A more effective approach would involve managed service contracts between the armed forces and drone manufacturers.
  • Such agreements would include:
    • Continuous maintenance and support.
    • Regular software and hardware upgrades.
    • Assured supply during emergencies.
    • Enhanced surge production capacity during conflicts.
• Benefits of Long-Term Partnerships
  • Long-term partnerships would provide demand predictability for manufacturers while ensuring sustained military readiness.
  • More importantly, they would encourage continuous collaboration between industry and the armed forces, enabling rapid adaptation to changing battlefield conditions and technological threats.

Conclusion

• India's investment in domestic drone production demonstrates a clear recognition of the changing character of warfare.
• However, acquiring drones alone will not guarantee military effectiveness.
• Sustained success requires procurement systems that prioritise continuous innovation, technological adaptability, and sustained capability.
• By moving from transactional purchases to strategic partnerships, India can build a defence ecosystem capable of keeping pace with the rapid evolution of tactical drones and the demands of future warfare.