India Plans Three-Year Initiative to Build Drone Supply Chain

According to reports from Indian media on the 4th, the Indian government intends to propose a three-year investment plan worth 20 billion Indian Rupees (approximately 6.77 billion New Taiwan Dollars) to encourage domestic companies to participate in the production of drone components, aiming to enhance modern defense capabilities to counter potential threats from China and Pakistan.
During the military conflict in May, India and Pakistan extensively used reconnaissance drones and suicide drones, highlighting that drones have become a major force in current combat operations. In response, the Indian government is determined to formulate a new plan to expand investment and encourage local production of advanced drone components and the development of anti-drone systems through high-value incentives, with the goal of achieving 40% domestic manufacturing of key drone components before the end of the 2028 fiscal year.
Historically, India has relied primarily on Israel as the third-largest supplier of military drones. Although official policy prohibits the import of commercial drones, there are no restrictions on the import of components, leading to dependence on Chinese imports for engines, sensors, and subsystems in the local drone industry. Given the strained relations with China and Pakistan, the Indian government is formulating a new plan after the 12 billion Rupees incentive plan launched in 2021, hoping to foster the development of the domestic drone industry through low-interest loans from state banks, thereby establishing a stable military drone supply chain.