Drone Startups Expect Export Tailwinds from the India-US Trade Deal

For Indian drone startups, the India–US trade deal is a substantial opportunity to scale exports and reinforce their presence in global markets. Industry leaders highlighted enhanced access to advanced components, manufacturing know-how, and global supply chains as key benefits of the agreement.

The senior vice president at IG Defence said the trade deal could act as a catalyst for the industry if it is pursued with a "lasting, capability-led approach instead of interim import dependence".

Improved access to cutting-edge components, manufacturing knowledge and global supply chains will help Indian companies fast-track their journey from assembly to full-spectrum design, engineering and innovation. This also fortifies export pathways, essential if Indian drone manufacturers want to compete on the global stage.

The vice president cautioned that the agreement supports the requirement to deepen domestic competencies across areas, including electronics, propulsion systems, secure software and testing infrastructure.

Drone maker Idea Forge’s CFO said the reduction in US tariffs on Indian goods to around 18% brings predictability and renewed impetus to bilateral trade.

He said that the US announcement of a revised tariff of approximately 18% on Indian goods has given the trade relationship between the two nations fresh momentum. This agreement will boost trade between India and the US and provide predictability, scale, and quality improvements for the industry.

It will mitigate supply chain disruptions and rising costs, thereby creating value. "Today, technology rules how the world functions, and such trade recalibrations create new prospects for companies like ideaForge for expansion in the world’s largest technology services and hardware market.

For drone companies, in particular, the agreement creates new opportunities to integrate into global supply chains, surge exports and co-develop next-gen products with international partners.

Source: Money Control