India-US Strategic Defence Deal: MoD Inks LOA for 31 MQ-9B Drones, Mandating MRO Setup in India
SDG 16: Peace, Justice and Strong Institutions | SDG 9: Industry, Innovation, and Infrastructure
Institutions: Ministry of Defence (MoD)
The Ministry of Defence (MoD) has formalized the pivotal acquisition of 31 MQ-9B armed High Altitude Long Endurance (HALE) Remotely Piloted Aircraft Systems (RPAS) (Predator drones) from the United States by inking the Letters of Offer and Acceptance (LOA). The deal, valued at approximately $3.5 billion (Rs 32,000 crore), was executed under the Foreign Military Sales (FMS) program and represents a significant upgrade to India’s Intelligence, Surveillance, and Reconnaissance (ISR) capabilities across its land and maritime borders.
The acquisition package includes 15 Sea Guardian drones for the Indian Navy and eight Sky Guardian drones each for the Indian Army and Air Force, along with advanced weapons systems such as Hellfire missiles and precision-guided glide bombs. The signing of the LOA confirms the definitive contractual commitment of both nations to the terms of the sale, delivery, and logistics. Crucially, the MoD also inked a separate contract with the manufacturer, General Atomics, for Performance Based Logistics (PBL) through the establishment of Depot Level Maintenance, Repair & Overhaul (MRO) facilities in India.
Policy Relevance
This acquisition reinforces the deepening strategic defense partnership between India and the US, providing India with superior ISR and precision strike capability, particularly in the critical Indian Ocean Region (IOR). The inclusion of the mandatory MRO setup under the separate contract aligns with the ‘Make in India’ and Atmanirbhar Bharat policy goals, ensuring long-term domestic support, maintenance, and essential capacity building for high-end US technology.
What is Foreign Military Sales (FMS) program)?→ The Foreign Military Sales (FMS) program is a Government-to-Government mechanism through which the United States transfers defense articles, services, and training to foreign nations and international organizations. Under FMS, a foreign country, like India, contracts directly with the US Department of Defense (DoD), rather than directly with the American defense company. The process is initiated by a formal Letter of Request (LOR) from the foreign country, which the DoD’s Defense Security Cooperation Agency (DSCA) develops into a detailed Letter of Offer and Acceptance (LOA). This process is part of US foreign policy, is authorized by the Arms Export Control Act (AECA), and is subject to strict Congressional oversight. For the buyer, FMS offers transparency in the acquisition process and leverages the US government’s purchasing power to potentially reduce costs.
Relevant Question for Policy Stakeholders: How will the Ministry of Defence ensure that the MRO contract delivers a genuine transfer of technology and expertise to Indian private sector partners to accelerate indigenous development of advanced HALE UAV platforms?
Follow the full news here: MoD inks Letters of Offer & Acceptance with US