Based on public reports available as of October 8, 2026. Procurement figures and capability claims come from government statements and media reports and are not independently verified.
The wars of the past few years, especially in Ukraine, have shown that cheap drones, electronic warfare and software can change outcomes on the battlefield. India has taken note. Over the past year its armed forces have signed contracts for loitering munitions, taken delivery of indigenous kamikaze drones, added AI-enabled surveillance aircraft and started building counter-drone defences. This article looks at what India is adopting, who is building it and what questions remain.
Why drones sit at the centre of India's plans
Defence Minister Rajnath Singh said in March 2026 that India should become a global hub for indigenous drone manufacturing, and stressed that this means building the entire ecosystem, including components, software, engines and batteries. At the National Defence Industries Conclave he argued that recent conflicts demonstrated the importance of both drones and counter-drone technologies, and that India must become fully self-reliant in drone manufacturing for strategic autonomy.
The push also has a political backdrop. Reports say Prime Minister Narendra Modi's Independence Day remarks this year emphasised indigenous drone and counter-drone technology, and the Army is reported to be planning a major expansion of drone and surveillance capability valued at around Rs 20,000 crore.
What India is buying and fielding
Loitering munitions. Often called kamikaze drones, these circle over an area and strike a target, consuming themselves in the process. In mid-August 2026 the Defence Ministry signed contracts worth about Rs 1,577 crore with Tata Advanced Systems and NIBE for loitering munition systems, reportedly including 840 munitions, for the Army. The Hindu reported that the contracts call for about 60% overall indigenous content, including at least 50% indigenous materials, components and software. The Army is also reported to be exploring a new class of ramjet-powered, supersonic loitering munitions designed to defeat modern air defences.
Emergency-procurement systems. Under its sixth round of emergency procurement (EP-6), the Army has received the UAV-Launched Precision Guided Munition (ULPGM), co-developed by DRDO and Adani Defence & Aerospace and described as India's first indigenous loitering munition in its category, and the AGNIKAA VTOL-1 first-person-view kamikaze drone. Both were handed over after high-altitude, electronic warfare and precision-firing trials.
Larger plans. Media reports say the Army aims to induct tens of thousands of loitering munitions over time and give infantry battalions dedicated drone platoons. These figures come from reports rather than official procurement documents, so treat them as direction of travel, not firm orders.
Where AI comes in
In January 2026, India selected Shield AI to supply V-BAT drones to the Army, including licences for the company's Hivemind autonomy software. Autonomy software lets drones navigate and operate with less direct pilot control, which matters in areas where radio links can be jammed. This is one of the clearest examples of AI being built into Indian military hardware, though it relies on a foreign supplier.
On the Indian industry side, work continues across fixed-wing UAVs, VTOL platforms, swarm systems, weaponised drones and counter-drone technology. Public details on Indian-built AI targeting or swarm capabilities remain limited.
Counter-drone defence
As cheap drones spread, defending against them has become just as important:
IG Defence has secured Army and Navy orders for its indigenously developed IG T-Shul Pulse anti-drone system.
Axiscades has won an emergency-procurement order for 12 man-portable counter-drone systems that can detect drones up to about five kilometres away and jam their signals.
Research has begun on a new 7.62mm anti-drone bullet, and DRDO has started work on hypersonic missile interceptors.
The Army has pushed counter-drone work for years, partly after incidents of drones being used for surveillance and arms-dropping along the Pakistan border.
Wider modernisation
Drones are one part of a broader shift. India has approved integrated battle groups in an Army reorganisation, is planning to buy 300 Dhanush 155mm towed howitzers, and has approved six Boeing 767-based tankers to extend Air Force reach. Navy and Air Force plans for 31 MQ-9B long-endurance drones, with 15 for the Navy and 8 each for the Army and Air Force, were also reported.
Challenges and open questions
How indigenous is indigenous? Analysts note that "indigenous content" can be measured in different ways, such as design ownership, production of critical sub-systems, testing capacity and supply-chain security. Dependence on imported components can limit self-reliance.
Counter-drone readiness. Ukraine's experience shows that defences must keep adapting, since fiber-optic drones, for example, are immune to jamming.
Doctrine and training. Buying drones is easier than building units, tactics and pilot pools that use them well.
Complement, not replacement. Defence analysts caution that loitering munitions work as part of a layered fires system and do not replace missiles, guns or surveillance platforms.
Ethics and control. As autonomy increases, questions about human control over lethal decisions become more important, a debate also taking place in Ukraine.
What to watch next
Whether Rs 20,000 crore in reported drone plans turns into signed contracts
Progress on domestic components, such as engines, batteries and sensors
Further orders for counter-drone systems
Any move from supervised autonomy to more advanced AI-enabled systems
Bottom line
India is moving quickly from drone pilot projects to large procurement, with a strong emphasis on indigenous production and counter-drone defence. The direction is clear, while the pace, true indigenous depth and battlefield readiness remain to be tested.
Sources
The Defense Post, Indian Army and India coverage (January to April 2026), including V-BAT/Hivemind, IG Defence and anti-drone ammunition items
Business Standard, reporting on EP-6 deliveries (ULPGM, AGNIKAA VTOL-1) and Rajnath Singh's remarks
Channel IAM, "Indian Army drone procurement" (August 17, 2026)
Anantam IAS, "Army Loitering Munitions: Fast-Track Procurement and Indigenous Capability" (summarising The Hindu)
Spherical Insights, "How Military Drones Are Shaping India's Defence Future"
The Defense Post, Axiscades counter-drone contract report
Flapone, drone product news (reported plans; verify against official sources)