The Indian government has cancelled three contracts for buying 400 logistics drones for the army, according to The Times of India. This decision was made after reports of drones with Chinese parts being hacked near the international border. 

The main target of the crackdown was domestic private-sector companies that use Chinese components in military drones. According to one source who spoke to TOI, the defence establishment is implementing a "stringent mechanism" to ensure that no electronic codes or Chinese components are present in the military drones that are being introduced. 200 medium-altitude, 100 heavy-weight, and 100 light-weight logistics drones were part of the cancelled contract. The sum of the purchase was 230 crore.

Drones were set to be deployed at the Line of Actual Control after the 2020 Galwan clashes along the Tibet border, where the Chinese army made several attempts to cross into Indian territory. According to the source, drones that contain Chinese components are a serious cybersecurity threat that might harm operations and data security. The action comes after several reports of the drones which were taken into use by the Indian Army being hacked in the border region. These drones were bought under the Make in India initiative. This information holds a significant place considering the use of drones by the various armed forces for collecting intelligence, reconnaissance and offensive motives. 

According to India Today, the Indian Army's drones were hacked twice in the past year near the Line of Actual Control (LAC) and the Line of Control (LoC). Sources revealed that the hacking was done by taking advantage of Chinese-made components used in these drones. A defence official told India Today that in the first known case of drone hacking, one drone failed to take off, while in another instance, drones lost control and strayed into Pakistani territory after being taken over by individuals across the border.

Meanwhile, China dominates the global drone market, with its companies supplying up to 90% of all commercial drones, according to CSIS research. One company, DJI, alone controls 70% of the market.