US-India trade deal opens up global opportunities for drone start-ups
What's the story
The India-US trade deal is being seen as a major opportunity for Indian drone start-ups to boost their exports and strengthen their global presence. Industry leaders have pointed out that the agreement will provide better access to advanced components, manufacturing expertise, and international supply chains. Maj Gen (retd) RC Padhi, Senior Vice President at IG Defence, said this trade deal could act as a catalyst for the sector if pursued with a "long-term, capability-led approach rather than short-term import dependence."
Global competition
Need to strengthen domestic capabilities
Padhi stressed that the trade deal would help Indian companies transition from assembly to full-spectrum design, engineering, and innovation. He also noted that it would strengthen export pathways, which are critical for Indian drone manufacturers to compete on a global scale. However, he warned that the agreement also highlights the need for strengthening domestic capabilities in electronics, propulsion systems, secure software and testing infrastructure.
Tariff impact
Trade relationship gains fresh momentum
Vipul Joshi, Chief Financial Officer of drone maker ideaForge, welcomed the reduction of US tariffs on Indian goods to around 18%. He said this move has brought predictability and renewed momentum to bilateral trade. "With the announcement of a revised tariff of approximately 18% by US on the Indian goods, the trade relationship between the two countries has gained fresh momentum," Joshi said.
Cost control
Curbing supply chain disruptions and costs
Joshi also highlighted that the trade deal will help curb supply chain disruption and rising costs, thus creating value. He said, "Today technology governs how the world functions and such trade recalibrations create new opportunities for companies like ideaForge to expand their footprint in the world's largest technology services and hardware market." The agreement also creates fresh opportunities for drone and UAV companies to integrate into global supply chains.
Future outlook
Balancing global collaboration with local design needs
Industry executives believe that the success of the trade deal will depend on how policy frameworks balance global collaboration with local design and manufacturing priorities. If done right, this agreement could put India on the map as a credible and trusted destination for drone development across defense, industrial and civilian applications.