India Eyes $3.9 Billion MQ-9B US Drone Deal in Defense Boost
A team from the United States is currently in India for discussions regarding the acquisition of MQ-9B drones by the Indian armed forces, a deal estimated to be worth $3.9 billion. The final agreement is still pending as negotiations on technology sharing continue. According to sources, representatives from General Atomics are in the capital to negotiate the acquisition of 31 drones, with 15 designated for maritime roles.
The US government approved the deal in February, estimating its value at $3.99 billion, an increase from earlier estimates of $3 billion. However, discussions on technology sharing have not yet been finalized. Additionally, the Indian armed forces are concerned about recent reports of advanced drones being shot down by non-state actors in conflict zones in West Asia.
India has been negotiating for a greater portion of the MQ-9B drones to be manufactured locally, aiming to support future efforts to develop indigenous combat drones. Officials have indicated that the US company is willing to produce some components in India, which would account for 8-9% of the deal's value.
However, officials have been trying hard to increase this to 15-20% of the deal value. General Atomics already has a tie-up with Bharat Forge to make UAV components and has also committed to setting up a global maintenance hub for the MQ-9B drones in India. Unlike in the past, when foreign companies had to invest 30% of the value of the contract in the Indian defence and aerospace industry, offset rules have been waived for government-to-government deals.
Once in service, the MQ-9Bs will operate from three planned hubs in India. One of these hubs is INS Rajali in Tamil Nadu, where two leased Navy drones are already operating. The other hubs are expected to be established in North India and the North East.
