• Local component development ensures that the technology and knowledge transfer from the U.S. firm will be significant.
• It allows for the creation of local jobs and skill development, which helps in boosting the economy and reducing unemployment rates in India.
• It promotes the 'Make in India' initiative, which is aimed at making India a global manufacturing hub and reducing dependency on imports.
• It provides a platform for local companies to establish themselves as suppliers, which will further strengthen India's defense industry and self-sufficiency.
• The local components will be subject to indigenous manufacturing and maintenance, which reduces life-cycle costs and maintenance downtime.
• It ensures the availability of spare parts and quicker turnaround times for maintenance and repairs, which will result in higher availability rates of the UAVs.
• It provides opportunities for technology upgradation and innovation, which can lead to the development of new products and services.
• Overall, local component development is a win-win situation for India, as it not only benefits the defense sector but also has a positive impact on the economy, job creation, and technology transfer.

In conclusion, the significance of local component development in the UAV deal between India and a U.S. firm is to enable India to become self-sufficient in its defense needs and to promote its economy by boosting employment, enhancing the competency of the local industry and reducing the burden of import dependency, which in turn will improve the country's security and strategic capabilities.