India’s armed forces projected to procure USD 2 bn worth of drones

India’s domestic military drone procurement is projected to surpass the USD 2 bn milestone this year. The aggressive ramp-up comes as recent global conflicts demonstrate the high reliability and cost-effectiveness of unmanned aerial systems over legacy defense hardware, Reuters reports, citing Drone Federation India President Smit Shah.

By the numbers: The next cycle of tactical drone purchases is poised to cross the INR 200 bn (USD 2 bn) threshold, following a massive surge compared with recent order books, which stood at roughly INR 30 bn (USD 313 mn). Faster procurement channels are expected as the Indian armed forces move to add surveillance, strike, and battlefield-support systems to their capabilities after the extensive deployment of drones during border clashes between India and Pakistan in May 2025.

Domestic base: India’s drone ecosystem has grown beyond niche and small-scale manufacturers. The sector now features more than 600 firms manufacturing unmanned vehicles or specialized components, including over 100 entities exclusively focused on military-grade systems. The supplier base spans conglomerates like Adani Group, Larsen & Toubro, and Tata Advanced Systems, along with startups such as ideaForge, Newspace Research, and Asteria Aerospace.

Why it matters: India’s drone strategy is moving from limited tactical orders to larger domestic procurement, with faster acquisition routes and repeat orders helping shorten buying timelines. The wars in Iran and Ukraine have reinforced the battlefield role of drones, loitering munitions, and tactical surveillance systems, giving Indian manufacturers clearer visibility into demand in categories that Gulf and wider MENA defense buyers are also keen to acquire.

Air India, Riyadh Air network tie-up

AirIndia and Saudi Arabia’s new national carrier Riyadh Air have signed an agreement to establish comprehensive interline and codeshare flights, according to a press release. The strategic partnership is designed to seamlessly link both carriers’ networks across India, Saudi Arabia, and onward international destinations to capture booming travel demand along the corridor. The partnership allows passengers to book interconnected journeys across both airlines via major transit hubs in Delhi, Mumbai and Riyadh.