L&T and General Atomics to Co-Produce Advanced Combat Drones in India

Indian engineering giant Larsen & Toubro (L&T) has signed a landmark agreement with U.S.-based General Atomics Aeronautical Systems Inc. (GA-ASI) to manufacture advanced combat drone components in India. The deal marks a significant step toward bolstering India’s indigenous unmanned aerial vehicle (UAV) capabilities under the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives.

Strategic Partnership Focused on MQ-9B Supply Chain

The agreement between L&T and GA-ASI was formalized during Indian Prime Minister Narendra Modi’s visit to the United States in June 2023. It enables L&T to manufacture critical aerostructures and subassemblies for the MQ-9B SkyGuardian/SeaGuardian remotely piloted aircraft system (RPAS), a Medium Altitude Long Endurance (MALE) platform developed by GA-ASI.

The MQ-9B is an advanced variant of the widely used MQ-9 Reaper drone. It features extended endurance (over 40 hours), all-weather operational capability, SATCOM-based beyond-line-of-sight control, automatic takeoff and landing systems (ATLS), and compliance with NATO STANAG 4671 airworthiness standards—making it suitable for both military ISR and maritime surveillance missions.

According to GA-ASI President David R. Alexander, this partnership will help integrate Indian industry into the global supply chain of MQ-9B production. L&T’s aerospace manufacturing facility at Coimbatore will be central to this effort.

India’s Procurement of 31 MQ-9B Drones

This industrial cooperation aligns with India’s planned acquisition of 31 MQ-9B drones—15 SeaGuardians for the Indian Navy and eight SkyGuardians each for the Indian Army and Air Force. The $3 billion procurement was approved by the U.S. State Department under Foreign Military Sales (FMS) terms in February 2024.

Each MQ-9B unit is expected to cost approximately $100 million including sensors, ground control stations, spares, training packages, and support infrastructure. The drones will significantly enhance India’s long-range ISR capabilities across maritime zones and contested land borders with China and Pakistan.

The deal also includes a commitment from General Atomics to set up a comprehensive Maintenance Repair Overhaul (MRO) hub in India—ensuring lifecycle support for both Indian-operated platforms and potentially those operated by other regional partners.

L&T’s Role in Indigenous Drone Manufacturing

Larsen & Toubro has steadily expanded its footprint in aerospace manufacturing over the past decade. Its Coimbatore facility is equipped with high-end CNC machining centers, composite fabrication units, clean rooms for avionics assembly, and quality assurance systems aligned with AS9100D standards.

Under this new partnership:

L&T will produce fuselage components such as center fuselage frames and tail booms using carbon-fiber composites.
The company may also assemble landing gear systems or payload integration modules depending on future workshare agreements.
This could evolve into final assembly line capabilities if order volumes justify local integration efforts beyond subcomponent production.

This aligns with India’s Defence Acquisition Procedure (DAP) 2020 that emphasizes Indigenously Designed Developed Manufactured (IDDM) categories wherever feasible—even when sourcing high-tech platforms from foreign OEMs via FMS or G2G deals.

General Atomics’ Offset Commitments & Technology Transfer

While FMS deals typically do not mandate offsets under U.S. law unless specifically negotiated bilaterally, GA-ASI has voluntarily committed to supporting India’s defense industrial base through technology partnerships. This includes:

Knowledge sharing on composite materials processing techniques used in UAV airframes
Training Indian engineers on quality assurance protocols for RPAS systems
Collaborating on AI-enabled mission planning software tailored to regional threat environments

These initiatives are designed not only to meet immediate platform needs but also build long-term sovereign capacity within India’s private sector defense ecosystem—especially as New Delhi eyes future development of indigenous MALE/HALE drones like TAPAS-BH201 or CATS Warrior loyal wingman concepts by HAL/DRDO.

A Boost for Indo-U.S. Defense Industrial Cooperation

This announcement adds momentum to broader Indo-U.S. defense technology cooperation under frameworks like iCET (Initiative on Critical Emerging Technologies). In addition to drones:

The two nations are collaborating on jet engine co-development via GE-HAL tie-up for AMCA fighter engines
Joint working groups have been formed around AI-enabled battlefield decision-making tools
Bilateral exercises like Yudh Abhyas increasingly integrate unmanned systems into joint force structures

The L&T-GA partnership thus serves as both a tactical enabler—delivering high-value ISR assets—and a strategic lever—deepening defense-industrial interdependence between two Indo-Pacific democracies facing shared regional security challenges from China’s assertiveness across multiple domains including space-based ISR denial operations and gray-zone maritime encroachments.

Outlook: Toward Greater Autonomy & Export Potential?

If successful over the next few years, this collaboration could pave the way for more ambitious joint ventures involving full-scale UAV development or export-oriented production lines from Indian soil. Key factors influencing that trajectory include:

Sustained political alignment between Washington and New Delhi across successive administrations
Smooth execution of current workshare agreements without IP/security friction
Evolving export control regimes such as MTCR compliance enabling third-country sales from Indian facilities

The first batch of India-bound MQ-9Bs is expected by late 2025 or early 2026 depending on contract finalization timelines post-Congressional notification processes within the U.S., followed by phased induction across tri-service commands supported by L&T-built components domestically integrated into global production pipelines managed by GA’s San Diego headquarters.