India’s domestic drone market is projected to grow from about USD 500 mn in 2025 to nearly USD 1.4 bn by 2030 at a CAGR of 24.4% as defense modernization accelerates, according to a report by HDFC Securities.

Economy of the war: The rapid adoption of unmanned aerial vehicles (UAVs) in modern conflicts is changing global defense spending, with drones emerging as core battlefield tech. The Russia-Ukraine war and the Iran conflict have accelerated demand for long-range strike drones and surveillance systems.

Why it matters: The surge in drone warfare is expected to benefit Indian defense electronics companies such as Apollo Micro Systems and Data Patterns due to their capabilities in avionics, radar, and electronic warfare systems used in UAV platforms. India's defense allocation in the FY 2027 budget reached INR 7.8 tn (USD 85 bn), with 28% of the total budget (USD 23.8 bn) specifically set aside for capital expenditure in advanced tech.

By the numbers: The global military drone market is set to reach USD 40 bn by 2030 from USD 26 bn today. Meanwhile, the counter-drone segment — focused on detecting and neutralizing hostile UAVs — is outpacing drones with a 21% compound annual growth rate, nearly double the 9.2% growth rate for drones.

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