Indian Army Scraps Drone Contracts with Domestic Firms over Chinese Components

The Indian Army has reportedly canceled contracts for 400 logistics drones after discovering that domestic manufacturers had used Chinese components, raising cybersecurity concerns.

The scrapped contracts, worth over INR 230 crore ($26.3 million), were signed in 2023 under emergency procurement provisions with a Chennai-based company. These included 200 medium-altitude, 100 heavy-weight, and 100 light-weight drones, intended for deployment along the 3,488-km Line of Actual Control with China. The move follows concerns that Chinese electronics in these drones could compromise military operations, posing risks such as data breaches, drone hijacking, and electronic warfare vulnerabilities, the Times of India reported.

According to defence sources, some Indian firms have incorporated Chinese-origin electronics in military drones, raising the risk of potential security breaches. Adversaries could gain control of these drones through electronic jamming or software vulnerabilities. There are also concerns about hidden "backdoors" in drone electronics that could bypass security systems.

The issue has gained urgency following reports of operational failures in unmanned aerial vehicles (UAVs) deployed for intelligence, surveillance, and reconnaissance (ISR) missions along the borders with China and Pakistan. In August 2023, an infantry unit lost control of a fixed-wing vertical take-off and landing (VTOL) UAV along the Line of Control in Rajouri, which veered into Pakistan-occupied Jammu and Kashmir. While the manufacturer attributed this to a technical glitch, the Army has since intensified scrutiny of drone procurements.

To prevent security risks, the defence establishment has introduced stricter verification measures to ensure that all military drones are free of Chinese components and software vulnerabilities. Drone manufacturers must now provide comprehensive certifications, and the procurement process will involve enhanced counter-checking and technical validation.

The defence ministry has also directed industry bodies such as FICCI, CII, and Assocham to caution their member companies against sourcing Chinese components for drones and other military equipment.

As part of its broader modernization efforts amid tensions with China, the Indian armed forces have been expanding their drone fleet. The procurement includes a wide range of unmanned aerial platforms, from nano, mini, and micro drones to kamikaze drones, logistics UAVs, and long-endurance surveillance systems.