US-India Discuss $3.99 Billion MQ-9B Drone Deal: Negotiations and Details Unveiled

A high-level delegation from the United States is currently in India, engaged in crucial discussions regarding the acquisition of MQ-9B drones by the Indian armed forces. The deal, valued at an estimated $3.99 billion, is still in the negotiation phase, primarily focusing on technology sharing agreements.

According to reports by The Economic Times, representatives from General Atomics, the manufacturer of the MQ-9B drones, are in the national capital to finalize the acquisition of 31 drones, out of which 15 are designated for maritime roles.

The U.S. government granted approval for the deal in February, significantly boosting its estimated value from $3 billion to $3.99 billion. However, discussions surrounding technology transfer and sharing are yet to reach a conclusive agreement.

The Indian armed forces have raised concerns in light of recent incidents where sophisticated drones have been targeted and brought down by non-state actors in West Asia. This has underscored the need for stringent security measures and technological safeguards.

Furthermore, India is pushing for a higher percentage of the MQ-9B drones to be manufactured domestically, aiming to bolster efforts towards indigenous development of combat drones.

In a bid to enhance ties with India, General Atomics has shown readiness to manufacture components within the country, currently accounting for 8-9% of the deal. Efforts are underway to escalate this to 15-20%.

General Atomics has already partnered with Bharat Forge for the production of UAV components and has committed to establishing a global maintenance hub for the MQ-9B drones in India.

Unlike previous agreements where foreign companies were mandated to invest 30% of the contract value in the Indian defense and aerospace sector, offset rules have been waived for government-to-government deals in this instance.

Once operational, the MQ-9B drones will be stationed at three planned hubs across India, including INS Rajali in Tamil Nadu, where two drones leased by the Navy are already operational. Additional hubs are anticipated to be established in North India and the North East, bolstering India’s defense capabilities and surveillance infrastructure.