SOURCE: AFI
In a significant move aimed at bolstering national security and promoting indigenous production, the Ministry of Defence (MoD) of India has taken action against domestic companies reportedly using Chinese spare parts and components to manufacture drones. This decision reflects growing concerns about the potential security risks associated with foreign-made parts, particularly from China, in equipment supplied to the Indian armed forces.
The Department of Defence Production (DDP) within the MoD issued a directive on June 25 to leading industry bodies, including the Federation of Indian Chambers of Commerce and Industry (FICCI), the Associated Chambers of Commerce and Industry of India (Assocham), and the Society of Indian Defence Manufacturers (SIDM), which is part of the Confederation of Indian Industry (CII). The letter urged these organizations to “sensitise” and “caution” their associated manufacturers against procuring components from companies that use Chinese spare parts for producing drones in India.
The MoD’s scrutiny has led to the suspension of a significant order for 200 logistic drones from Dhaksha Unmanned Systems Pvt. Ltd, a Chennai-based company. This move signals a broader investigation into all firms supplying drones to the Indian armed forces.
The DDP’s letter specifically named three companies—Dhaksha Unmanned Systems Pvt. Ltd, Sky Industries in Gandhinagar, and Garuda Aerospace Pvt. Ltd—allegedly involved in selling or supplying unmanned aerial vehicles (UAVs) or drones that incorporate Chinese components. “It has come to the notice of the Department of Defence Production, Ministry of Defence, that Dhaksha Unmanned Systems Pvt. Ltd; Sky Industries, Gandhinagar; and Garuda Aerospace Pvt. Ltd are reportedly engaged in selling/supply of UAVs/drones to Indian Defence Forces which include assembly and integration of Chinese components,” the letter stated.
The letter further emphasized the importance of vigilance and caution among defense manufacturers: “All the Industry associations are hereby requested to sensitise their members engaged in defence manufacturing to exercise caution while procuring defence items from said three companies and remain vigilant while procuring from other players in this field,” the DDP stressed.
In response to the MoD’s actions, Dhaksha Unmanned Systems Pvt. Ltd issued a statement denying the use of Chinese components in their drones. A spokesperson for the company said, “We would like to clarify that Dhaksha Unmanned Systems does not use any Chinese components in its defence drones, and any such claims are untrue and unsubstantiated. Dhaksha Unmanned Systems has also reiterated this fact to the Defence Ministry officials.”
The company further highlighted its compliance with the government’s directives and quality standards. “As part of the process, the company had submitted all the information and documents related to the sourcing of its components to the Defence Ministry and has successfully submitted documents towards completion of the quality and process audit. Dhaksha Unmanned Systems remains steadfast in its commitment to manufacture ‘Make in India’ drones,” the spokesperson added.
The MoD’s directive comes at a time when the Indian government is pushing for greater self-reliance in defense production, particularly under the “Make in India” initiative. The use of foreign components, especially from countries like China, which India views with strategic caution, could undermine this objective.