The move has racked up costs for makers of drones in the country, with around 70% of goods in the supply chain currently being made in China
The commerce ministry said the restrictions will include some drone engines, lasers, communication equipment and anti-drone systems
The Biden administration is keen for Indian officials to cut through the red tape and advance the deal ahead of Prime Minister Narendra Modi's US visit next week
The island's president Tsai Ing-wen has championed the idea of "asymmetric warfare" to make Taiwan's forces more mobile and harder to attack
The firm also plans to help establish a Russian production site for the drones which are similar to Iran's Shaheed-136 and can carry a 35-50kg warhead
Lessons have been taken from the war in Ukraine where drones have played a crucial role on both sides, Taiwan's defence ministry said
The new system is designed to protect against low-flying and small drones which are a key feature of the modern battlefield