In recent months, the Indian government has taken measures to prohibit domestic military drone manufacturers from using components made in China after concerns were raised about potential security vulnerabilities, according to four defence and industry officials and documents reviewed by the news agency Reuters.Speaking on the condition of anonymity due to the sensitivity of the topic, several officials expressed apprehension about potential security vulnerabilities associated with intelligence-gathering capabilities in drones equipped with China-made parts. The ban applies to various functions, including communication systems, cameras, radio transmission, and operating software.The move comes amid rising tensions between India and China, particularly following skirmishes along the Line of Actual Control (LAC) in eastern Ladakh in May 2020, which have added urgency to Indias pursuit of military modernisation and increased reliance on unmanned quadcopters and autonomous systems.During meetings in February and March, Indian military officials conveyed to potential bidders that any equipment or subcomponents from countries sharing land borders with India will not be acceptable for security reasons, according to the meeting minutes reviewed by Reuters. The military officials involved in the decision were not named in the minutes.One tender document said that Chinese drone subsystems had security loopholes that could be used to compromise military data, and called upon vendors to disclose the countries of origin of drone components.While not explicitly mentioned, the reference to neighbouring countries was a euphemism for China, with whom Indias cyberattack concerns remain, a senior defence official told Reuters. The official added that Indias arms industry had become dependent on Chinese parts, despite concerns about cyberattacks.While Beijing has steadfastly denied any allegation of cyberattacks, the US Congress previously banned the purchase or use of Chinese-made drones and components by the Pentagon in 2019.Indias ban on Chinese military drone parts will increase costs: ExpertsAcknowledging the challenges associated with shifting away from Chinese suppliers, an Indian defence official noted that India must prepare for increased costs to strengthen its domestic manufacturing capabilities.“If today I buy equipment from China but I say I want to make it in India, the cost will go up 50%. We as a nation need to be ready to help the ecosystem build here,” he said.According to Sameer Joshi, founder of NewSpace Research and Technologies, a Bengaluru-based drone supplier, approximately 70% of the supply chain relies on Chinese goods, even for manufacturers attempting to procure components from non-Chinese sources.“So if I talk to, lets say, a Polish guy, he still has his components which are coming via China,” he said.Despite the potential cost increases, Indian authorities are determined to support domestic manufacturing. Finance Minister Nirmala Sitharaman pledged one-quarter of this fiscal years defence research and development budget to be allocated to private industry.
