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Current Affairs

SMPP and KNDS Sign Strategic Agreement to Manufacture Advanced Loitering Munitions and ISTAR Drones in India

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On 20 June 2026, Indian defence technology firm SMPP and European land defence company KNDS signed a strategic teaming agreement at the Eurosatory Exhibition in Paris. The partnership focuses on manufacturing loitering munitions and ISTAR drones locally in India under the Make in India and Atmanirbhar Bharat initiatives. These systems combine surveillance, target acquisition, and precision strike capabilities to meet the Indian Army’s urgent requirement for modern battlefield operations. The agreement includes technology transfer and aligns with India’s goal of strengthening indigenous defence manufacturing and reducing import dependency.

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Key Facts

  • Date of agreement: 20 June 2026
  • Parties involved: SMPP (India) and KNDS (Europe)
  • Location: Eurosatory Exhibition, Paris
  • Technology: Loitering munitions (VELOCE and RODEUR systems) and ISTAR (Intelligence, Surveillance, Target Acquisition and Reconnaissance) drones
  • Features: Hybrid guidance integrating multi-constellation GNSS and inertial navigation system (INS); fire-and-forget capability
  • Operational range context: SMPP’s previously delivered Agniveg loitering munitions have an operational range of nearly 180 km
  • Strategic alignment: Make in India and Atmanirbhar Bharat initiatives promoting domestic defence manufacturing
  • Previous cooperation: Teaming agreement signed in November 2025 for the KATANA 155 mm precision-guided artillery munition

Background & Context

Loitering munitions are unmanned aerial systems that combine surveillance, target acquisition, and strike capabilities, often described as “search-and-destroy” systems. Unlike conventional missiles, they can loiter over battlefield areas for extended periods to identify and strike high-value targets with precision.

The partnership between SMPP and KNDS reflects India's ongoing strategy to build indigenous defence manufacturing capabilities under its Make in India and Atmanirbhar Bharat initiatives. It addresses the Indian Army's urgent requirement for precision strike and battlefield reconnaissance systems amid modern warfare's evolving demands.

Why This Matters for Exams / Exam Relevance

This agreement is an important example of India's move towards self-reliance in defence technology, a common topic in current affairs and defence studies sections of competitive exams. Understanding key defence partnerships, government initiatives like Atmanirbhar Bharat, and emerging technologies such as loitering munitions and ISTAR drones can be crucial.

Exams may test candidates on:

  • Dates and venues of significant defence agreements.
  • Key players in Indian defence industry collaborations.
  • Technological features and purposes of loitering munitions and ISTAR drones.
  • Government initiatives aimed at boosting indigenous defence production.

Points to Remember

  • The SMPP-KNDS teaming agreement was signed on 20 June 2026 at the Eurosatory Exhibition in Paris.
  • Production will be local in India, supporting Make in India and Atmanirbhar Bharat goals.
  • Systems include VELOCE and RODEUR loitering munitions and ISTAR family drones combining precision strike with reconnaissance.
  • Technologies incorporate hybrid navigation (GNSS + INS) and fire-and-forget modes to enable accuracy and ease of use.
  • Previous partnership on KATANA 155 mm precision-guided artillery munition was formalized in November 2025.
  • SMPP has experience delivering loitering munitions such as the Agniveg system to the Indian Army.
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