China’s dominance overshadows India’s drone ambitions despite breakthroughs

India’s recent success in neutralising a large-scale Pakistani drone offensive along its northern borders has underlined the strategic value of homegrown unmanned aerial vehicles (UAVs).

However, the emerging drone arms race in South Asia is revealing a critical vulnerability in India’s deep dependence on Chinese components. Despite a growing domestic drone ecosystem, over 39 per cent of India’s flight controllers and most core components are still imported from China, raising serious security and supply chain concerns.

Earlier this month, both India and Pakistan engaged in their most extensive drone combat to date, following four days of hostilities codenamed Operation Sindoor by India, which concluded with a US-brokered ceasefire. The clash, involving hundreds of UAVs, marked a tactical shift in how both nuclear-armed neighbours engage across the volatile border, with drones offering a low-risk alternative to conventional military escalation.

India’s swift and effective response was powered by its indigenously developed counter-drone systems and long-range surveillance UAVs. Platforms developed by start-ups such as Alpha Design Technologies and Paras Defence & Space Technologies played a critical role in thwarting incoming drone swarms.

Yet, even as India ramps up its defence capabilities, with up to $470 million earmarked for UAV procurement over the next two years, its reliance on Chinese parts remains a serious limitation.

According to a government disclosure in Parliament this April, 39 per cent of flight controllers used in India’s smaller drones originate from Chinese manufacturers. These circuit boards, often referred to as the "brain" of the drone, control flight trajectory, movement, and response. The civil aviation ministry also revealed that despite a Production Linked Incentive (PLI) scheme worth Rs 120 crore to boost domestic manufacturing, nearly 18 per cent of the funds remain unutilised.

The vulnerability doesn’t end with flight controllers. India’s drone makers rely heavily on China and Taiwan for motors, cameras, batteries, and rare earth magnets — the latter being essential for drone propulsion and navigation. Between March 2022 and February 2023, India imported drone parts from China worth $50–70 million, a 53 per cent increase over the previous year.

With China tightening export controls on critical drone components like long-range UAVs and flight controllers since 2023, Indian manufacturers face increasing uncertainty. Export license requirements now delay shipments by up to two months, and there’s no guarantee of approval. Prices of critical rare earth elements such as dysprosium and neodymium — crucial for lightweight drone motors — have already surged by up to 50 per cent.

Industry experts warn of deeper security threats. “If someone embeds a Trojan or hidden virus in a drone, they could control it remotely from China, Taiwan, or even the US,” said Peeyush Kumar, CEO of drone tech firm Pixella. In a battlefield scenario, such compromised drones could malfunction or transmit sensitive data, posing a national security risk.

India’s civil drone sector only began taking off after 2021, following the easing of licensing norms and the launch of the Digital Sky platform. While over 550 drone companies now operate under the Drone Federation of India, the ecosystem still struggles with inadequate R&D spending — stuck at 0.64 per cent of GDP — and a chronic skills gap. Only 2.1 per cent of the Indian workforce holds a PhD, compared to the global average of 7.2 per cent, limiting innovation in areas like sensors and electronics.

Additionally, the supply-demand cycle in India’s civilian drone sector remains erratic, tied to seasonal agricultural needs and sporadic government procurement. Defence contracts, though more consistent, are highly competitive and limited in number, making it difficult for smaller firms to scale sustainably.

Meanwhile, Pakistan — despite a smaller defence budget — is also expanding its drone capabilities with help from China and Turkiye. Its domestically assembled Baykar YIHA-III drones, based on Turkish designs, played a significant role in its latest offensive, which saw swarms of 300–400 drones deployed along a 1,700 km front.

As drone warfare becomes the new frontier of military strategy in South Asia, India finds itself at a crossroads. While battlefield victories showcase domestic innovation and resilience, the country’s dependence on China for core technologies underscores an urgent need for self-reliance — not just in assembling drones, but in developing the foundational components that power them. Without addressing this dependency, India’s drone push risks becoming a house built on shifting sands.