Drones for Defence

The Indian government’s policy reforms and regulatory framework have played a crucial role in fostering growth in the defence manufacturing sector. The “Make in India” initiative, coupled with the Defence Procurement Procedure (DPP) 2016, has encouraged domestic manufacturing and indigenization. The government’s decision to raise the Foreign Direct Investment (FDI) cap to 74% under the automatic route has further facilitated foreign collaborations.

Vipul Joshi, CFO of ideaForge, highlights the transformative impact of the “Make in India” initiative on India’s defence manufacturing sector, particularly in UAV technology. By developing advanced drones domestically, ideaForge has reduced dependence on imports, promoted local innovation, and strengthened India’s defence capabilities, paving the way for the country’s emergence as a global defence leader. Excerpts:

How has the Make in India initiative influenced the defence manufacturing sector, particularly in the UAV space?

The Make in India initiative has significantly accelerated the growth of the defence manufacturing sector, particularly in the UAV space, by fostering innovation, self-reliance, and the development of indigenous technologies.

Our journey at ideaForge began in 2004 when a group of passionate IIT Bombay alumni, including Ankit Mehta, Rahul Singh, Ashish Bhat, and myself, joined forces in the innovation cell. Driven by a commitment to cutting-edge technology, we established one of India’s foremost drone companies in 2007.

Make in India for the World is not just a slogan; it’s our mantra. We’re dedicated to developing world-class UAV solutions that enhance operational capabilities both domestically and internationally.

We have been proudly building indigenous UAV technology long before a supportive ecosystem emerged. From developing India’s first quadrotor drone to creating high-altitude, all-terrain UAVs, we have consistently led the charge in domestic innovation.

As part of our commitment to “Make in India for the World,” we are scaling our operations to meet global demands. Our advanced UAV solutions enhance operational capabilities both domestically and internationally, positioning India as a key player in the global drone technology market. ideaForge has grown from our roots in the innovation cell to establish manufacturing facilities in Mumbai, where we meticulously design and produce advanced drone solutions that meet the demanding requirements of our customers.

Through years of R&D, we have built UAVs adapted to India’s diverse terrain and extreme climates, making us the largest drone technology and manufacturing player in the country. This initiative has allowed us to thrive, contributing to India’s defence capabilities and technological sovereignty.

In what ways is ideaForge contributing to India’s self-reliance in defence technology, especially in UAV manufacturing?

ideaForge is significantly advancing India’s self-reliance in defence technology, particularly in the UAV manufacturing sector. Our drones are entirely designed, developed, and manufactured domestically, with only 21% of last year’s revenue coming from imported critical components, such as sensors, that were not readily available in India.

Indigenization is not just about reducing imports; it’s about creating a self-sustaining ecosystem that promotes local innovation and economic growth. We’re committed to fostering this ecosystem.

This underscores our commitment to indigenous innovation, as we develop core technologies, software, and subsystems in-house, primarily using Indian-sourced components.

We strongly advocate for indigenization as a key criterion in government procurement programs, aligning our efforts with the Atmanirbhar Bharat (self-reliance) initiative. Additionally, we are actively cultivating a robust domestic supplier network to further reduce dependence on foreign imports.

As leaders in indigenization and IP development within India’s drone industry, ideaForge plays a pivotal role in advancing technological self-sufficiency. Our commitment to fostering a self-sustaining ecosystem not only strengthens India’s defence capabilities but also promotes local innovation and economic growth.

By prioritizing indigenous solutions, we aim to set a benchmark for the industry and ensure India’s leadership in UAV technology. Furthermore, the introduction of the Indian Design Develop Manufacturer (IDDM) category as part of overall defence procurement is a positive step toward bolstering localization, a direction we fully support and aim to lead.

Can you share some successful examples where ideaForge’s UAVs have enhanced the operational capabilities of India’s defence forces?

ideaForge has significantly enhanced India’s defence capabilities with its UAVs, particularly the SWITCH and NETRA series. NETRA, recognized as a pioneering UAV in India, was developed in collaboration with the DRDO and represented our initial foray into the UAV sector.

Building on this foundation, we introduced the SWITCH as a hybrid UAV, which was a significant advancement over traditional fixed-wing solutions. At the time, users were seeking a solution that could cover larger areas with greater versatility, and SWITCH addressed that need by combining the strengths of both fixed-wing and multi-rotor technologies.

A notable milestone occurred in 2021, when the Indian Army awarded us a $20 million contract for the SWITCH UAV, a man-portable drone designed for demanding surveillance operations. In 2022, we received a repeat order from the Army for additional SWITCH UAVs specifically for border surveillance, demonstrating their trust in our solutions. That same year, ideaForge secured the largest single VTOL Mini UAV contract globally, delivering 200 SWITCH systems, underscoring our commitment to meeting operational needs.

As India aims to become a global manufacturing hub by 2047, what are the long-term growth plans for ideaForge? Do you see the company expanding into new product categories or markets?

As India strides towards becoming the Global Manufacturing Hub by 2047, ideaForge is positioned for significant growth, focusing on deepening its market penetration in both the defence and civil sectors. We are committed to innovating in unmanned logistics and mobility for these applications. By fostering collaborations with the government and enterprises, we are enhancing our ISR capabilities and plan to unveil larger platforms that address logistics and mobility needs in the near future.

Additionally, with the recent launch of the FLYGHT Franchise model, ideaForge has entered the Drones-as-a-Service (DaaS) market. This first-of-its-kind innovation enables large enterprises to seamlessly integrate UAV technology into their operations. We are dedicated to expanding our product portfolio to meet the evolving needs of our customers in both Indian and global markets, with a particular focus on increasing our presence in North America and beyond.

ideaForge will also continue to drive innovation in UAV productization and production, working to simplify UAV systems so that they can operate with minimal infrastructure. Aligned with Industry 4.0 practices, we are integrating automation, mechanization, and other advanced technologies to further boost our innovation capabilities, making our UAVs even more efficient and accessible across diverse sectors.

What do you think are the critical steps the government and private sector need to take to overcome barriers and push India further into global defence markets?

To overcome barriers and position India as a leader in the global defence markets,it is crucial for the government to enhance its Production Linked Incentives Scheme (PLI) and establish upfront R&D funding to promote indigenisation efforts. These initiatives will drive high-value innovations and foster a self-reliant ecosystem in the defence sector.

Aligning fiscal policies with sectoral needs is equally important, as it could accelerate the development of cutting-edge defence technologies, including advanced surveillance and armed drone systems, thereby strengthening national security capabilities.

Moreover, collaboration between the private sector and government agencies is essential for integrating drones and other advanced technologies into India’s defence and governance frameworks. By investing in rigorous in-house R&D and innovation, India can boost its defence capabilities, encourage the rise of startups, expand market opportunities, and secure a prominent position in the global defence landscape.

Vipul Joshi

CFO, ideaForge

aanchalg@cybermedia.co.in