87 MALE Drones Up for Grabs: Why Global Defence Firms Are Rushing Into India's Drone Market

General Atomics' $3.5 billion deal for 31 MQ-9B armed drones for India's armed forces has already been inked; it is in the running for MALE (Medium Altitude Long Distance) drones. India's Defence Acquisition Council, headed by Defence Minister Rajnath Singh, decided in August that the armed forces needed 87 MALE drones. A MALE drone is usually in the air for 1-2 days at a height of 10,000-25,000 feet or more. And this was to be Make in India. The drones would have to be designed, developed, and built in India. It is an IDDM (Indigenously Designed and Developed) product, meaning that at least 50 percent of the final product must be indigenous. Yes, many Indian firms are in the fray, including Hindustan Aeronautics, Larsen & Toubro, the Adanis,

and Bharat Forge. What is interesting is that many foreign firms are keen on being involved in this project, which could be worth Rs 30,000 crore. Turgis & Galliard, a French firm, and Bharat Forge are working together. The Adanis and Israel's Elbit have an agreement, and L&T and General Atomics have a working relationship.The two lowest bidders will benefit: the lowest bidder will receive an order for 56 drones, and the new lowest bidder will make the remaining 31. That would ensure the creation of two discrete manufacturing lines within the country. As the Request for Purchase process is underway, it is hard to say what the foreign firms will do, but as it is an IDDM contract, there will have to be a significant transfer of technologies. The drone would have to be manufactured in India. The defence ministry has said the "aerostructures" must be locally made, as also the electro-optics (EO) and Infrared (IR) systems. The defence ministry added that the engine integration and testing would have to be in India. Regardless of the defence ministry's final decision, the presence of foreign manufacturers in an IDDM scheme suggests growing interest in the Indian defence sector, particularly Make in India. It will mean transfer of technology and more foreign direct investment in the defence sector.