India Plans Rs 30bn Drone Contracts to Boost Defence

24 Sep 2025 CW Team

Committed to promoting indigenisation, the Ministry of Defence plans to spend at least 75 per cent of its capital expenditure within India. It is also advocating for a minimum 17 per cent annual increase in the defence budget to support the country’s strategic ambitions.

Speaking to CNBC-TV18 at the Reforms Reloaded event in New Delhi, Singh stated that the Defence Ministry is preparing to issue a request for proposal (RFP) for the MALE drones, with an estimated cost of Rs 30 billion. He added that total defence orders could reach Rs 75 billion during the remainder of the financial year 2025-26, including procurements for Airborne Warning and Control System (AWACS) aircraft.

These acquisitions are intended to bridge critical capability gaps in India’s armed forces, including the procurement of 4.5-generation fighter jets. Singh noted: “If you don’t have 5th generation fighter jets immediately, you can compensate with a larger fleet of 4 and 4.5 generation fighters,” highlighting the Indian Air Force’s current shortfalls.

Further plans include the acquisition of AWACS, drones, unmanned aerial vehicles (UAVs), and aerial refuelling aircraft to enhance defence readiness. “Last year, for the first time, we fully utilised our budgets, and this year we will do the same. Three-quarters of last year’s contracts have already been awarded,” Singh said.

The Ministry expects a 10 per cent increase in defence capital expenditure in the upcoming budget and will push the Finance Commission for at least a 17 per cent hike. Singh also emphasised that India’s defence spending has fallen below 2 per cent of GDP, with plans to raise it to between 2.5 and 3 per cent to adequately meet national security requirements.

India’s Defence Secretary, Rajesh Kumar Singh, has announced a major initiative to strengthen the nation’s defence capabilities, revealing that the government will soon invite proposals for medium-altitude long-endurance (MALE) drone contracts worth Rs 30 billion.Committed to promoting indigenisation, the Ministry of Defence plans to spend at least 75 per cent of its capital expenditure within India. It is also advocating for a minimum 17 per cent annual increase in the defence budget to support the country’s strategic ambitions.Speaking to CNBC-TV18 at the Reforms Reloaded event in New Delhi, Singh stated that the Defence Ministry is preparing to issue a request for proposal (RFP) for the MALE drones, with an estimated cost of Rs 30 billion. He added that total defence orders could reach Rs 75 billion during the remainder of the financial year 2025-26, including procurements for Airborne Warning and Control System (AWACS) aircraft.These acquisitions are intended to bridge critical capability gaps in India’s armed forces, including the procurement of 4.5-generation fighter jets. Singh noted: “If you don’t have 5th generation fighter jets immediately, you can compensate with a larger fleet of 4 and 4.5 generation fighters,” highlighting the Indian Air Force’s current shortfalls.Further plans include the acquisition of AWACS, drones, unmanned aerial vehicles (UAVs), and aerial refuelling aircraft to enhance defence readiness. “Last year, for the first time, we fully utilised our budgets, and this year we will do the same. Three-quarters of last year’s contracts have already been awarded,” Singh said.The Ministry expects a 10 per cent increase in defence capital expenditure in the upcoming budget and will push the Finance Commission for at least a 17 per cent hike. Singh also emphasised that India’s defence spending has fallen below 2 per cent of GDP, with plans to raise it to between 2.5 and 3 per cent to adequately meet national security requirements.

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