The Indian government has eliminated the 18% Integrated Goods and Services Tax (IGST) on military hardware, significantly reducing costs for various military equipment, including UAVs and artillery components. This decision is expected to enhance India’s defense capabilities and promote the domestic defense industry, particularly in drone technology, making it easier for manufacturers to scale operations and secure defense contracts. The move aligns with India’s ongoing military modernization efforts, especially following recent operations targeting terrorism across its borders, and enables emergency procurement measures for the armed forces. Ultimately, this reform is a strategic step towards strengthening India’s defense landscape and response capabilities.