India Bars Use of Chinese Components In Military Drones In Self-Reliance Push: Report

India has reportedly taken a decisive step to enhance its security infrastructure by restricting the use of Chinese components in the manufacturing of military drones. This move is in response to rising concerns over potential security vulnerabilities associated with Chinese-made parts, Reuters reported.

What It Means: The decision aligns with India’s broader strategy to reduce its dependence on Chinese imports, especially in light of the recent border tensions between the two countries. The Galwan Valley clash in 2020 has further strained the bilateral relationship.

India’s defense ministry has not commented on this issue, but the move is evident in the military tenders. The tenders explicitly state that equipment or subcomponents from “countries sharing land borders with India” would not be accepted for security reasons.

Why It Matters: The country’s ambition to become a significant player in the global electronics supply chain is evident in its goal to achieve an annual production worth $300 billion by 2026. However, the ban on Chinese components poses challenges for domestic manufacturers.

In the interim, India has opted to purchase 31 MQ-9 drones from the U.S. at a cost of over $3 billion. Experts believe that a coherent national strategy is essential to bridge the technology gaps and deliver commercially viable products.

The Indian government’s emphasis on promoting domestic manufacturing is also evident in the budget allocation for defense research and development. The domestic industry needs significant investments in research and development to compete globally.

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Posted In: GovernmentMacro Economic EventsRegulationsEconomicsChinadronesIndia