New Delhi – A team from General Atomics, the manufacturer of the MQ-9B Reaper drone, is currently in New Delhi for continued negotiations regarding India's proposed acquisition of 31 of these unmanned aerial vehicles (UAVs). The deal, estimated at $3.99 billion, has been approved by the US government, but finalization hinges on ongoing discussions regarding technology sharing.
Sources indicate that while 15 of the drones are intended for maritime use by the Indian Navy, concerns persist over technology transfer. Additionally, recent reports of sophisticated drones being neutralized by non-state actors in West Asia have raised questions about the MQ-9B's vulnerability in potential conflict zones.
India has been pushing for increased local manufacturing of the MQ-9B components to bolster its domestic combat drone development capabilities. While General Atomics has expressed willingness to manufacture some components in India, the value currently stands at 8-9% of the deal, below the 15-20% that Indian officials are seeking.
Unlike previous defense deals, offset rules requiring foreign companies to invest a certain percentage of the contract value in the Indian defense and aerospace industry have been waived for this government-to-government agreement. However, General Atomics, in partnership with Bharat Forge, is already manufacturing UAV components in India and has committed to establishing a global maintenance hub for the MQ-9B drones within the country.
Once operational, the MQ-9B drones are slated to be deployed from three hubs in India. One of these hubs will be located at INS Rajali in Tamil Nadu, which currently serves as the base for two MQ-9B SeaGuardian drones leased by the Indian Navy. The remaining two hubs are expected to be established in North India and the North East.
The outcome of these ongoing negotiations will be a significant indicator of the growing defense partnership between India and the United States. As both sides work towards a mutually agreeable solution, the potential for enhanced surveillance and operational capabilities for the Indian armed forces remains a key factor driving the discussions.