India Cancels Contracts for 400 Drones Over Chinese Security Concerns

India has scrapped three contracts for 400 military drones due to concerns over Chinese components posing cybersecurity threats, reinforcing its strict prohibition on using Chinese-manufactured drones in security operations.

The canceled deals, worth $26 million (INR 230 crores), included contracts for 200 medium-altitude drones, 100 heavyweight drones, and 100 lightweight logistics drones, as reported by The Times of India on Feb 7.

Pathikrit Payne, a senior fellow at the Dr. Syama Prasad Mookerjee Research Foundation, a think tank affiliated with India’s ruling Bharatiya Janata Party (BJP), confirmed the cancellations.

“The government is concerned about the cyber vulnerabilities of India’s drones, particularly those with Chinese components. There are fears that China could exploit backdoor access to take control of drones, bypassing security protocols,” Payne said.

India has been ramping up efforts to boost domestic drone production, aiming to manufacture critical components locally under its production-linked incentive (PLI) scheme. The initiative seeks to reduce dependence on Chinese technology while enhancing national security.

“The government is making the right move by fostering an ecosystem that encourages companies to source and manufacture drones entirely in India, rather than just assembling imported parts,” Payne added.

China’s ambitions to become the leading global superpower by 2049 include technological dominance, according to experts Emilian Kavalski and Claris Diaz from China Observers in Central and Eastern Europe (CHOICE). Their analysis highlights the security risks posed by Chinese-made drones, urging nations to integrate these concerns into national security policies.

Similarly, the U.S. Cybersecurity and Infrastructure Security Agency (CISA) released a report this year titled “Cybersecurity Guidance: Chinese-Manufactured UAS”, warning that data collected by Chinese drones could compromise cybersecurity, enable sabotage, and enhance China’s ability to conduct cyber-attacks on critical infrastructure.

Beyond banning the use of Chinese drones in security agencies, India is also discouraging manufacturers from using Chinese-made components in their production processes.

To further reduce dependence on China, New Delhi has launched a multibillion-dollar incentive program to boost domestic electronics manufacturing. In 2023, the government expanded this initiative to cover 15 additional sectors, reinforcing its commitment to self-reliance.

Payne previously noted that India’s manufacturing sector and economy face geopolitical challenges due to China’s control over electronic supply chains. New Delhi remains vigilant and committed to promoting indigenous products to counter Chinese influence.