Military drones become the next flashpoint as the tech war escalates

Reuters sources said the move comes amid rising tensions between the two neighbors and New Delhi's pursuit of military modernization, which includes increased use of drones and other autonomous systems.

Indian analysts and defense officials say that officials are concerned that intelligence information could be exploited through components of Chinese origin, such as communication equipment, cameras, radios, and operating system software on drones.

Since 2020, New Delhi has imposed restrictions on the import of reconnaissance drones and has implemented this process through military tenders.

In early 2023, minutes from drone tender meetings revealed that Indian defense officials had told potential bidders that equipment or components “originating from countries sharing a land border with India would not be approved for security reasons.”

The military drone supply chain is heating up with import/export restrictions imposed by various countries.

Meanwhile, another document revealed that subsystems had “security vulnerabilities” that could compromise critical military data, and required suppliers to disclose the origin of the components.

India's industrial sector is currently dependent on the world's second-largest economy despite concerns about cyberattacks. Last week, Beijing announced export controls on certain types of drones and related equipment. In 2019, the US Congress banned the Pentagon from purchasing or using drones and components manufactured in China.

70% of drone components are manufactured in China.

Prime Minister Narendra Modi's government is seeking to build India's drone capabilities to counter emerging threats. The country has allocated $19.77 billion to modernize its military between 2023 and 2024, with 75% of that allocated to domestic industry.

However, the ban on using components from China has increased the cost of producing domestic drones by up to 50%, as manufacturers struggle to find replacement parts.

Finance Minister Nirmala Sitharaman said that large private Indian companies invest little in research and development, and venture capitalists in particular shy away from military projects due to lengthy implementation times and the risk of no market for the product.

Sameer Joshi, founder of NewSpace Research & Technologies, one of the companies supplying small drones to the Indian military, said that 70% of the goods in the supply chain are manufactured in the neighboring country. This has led to a situation where some manufacturers still import Chinese components but label them "white-label" to keep costs from skyrocketing.

India relies on foreign countries for both components and systems due to its lack of technology in manufacturing certain types of drones.

Y. Dilip, director of the Aerospace Development Authority (ADE), said a government-funded program to produce unmanned systems has been delayed for at least half a decade. For example, the Tapas platform, while meeting most technical standards, is limited by its engine to achieve the goal of “operating at an altitude of 30,000 feet and maintaining that altitude for 24 hours.”

To fill this gap, in June 2023, New Delhi announced the purchase of 31 MQ-9 drones from the United States for more than $3 billion.

(According to Reuters)

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