Latest Google Drive version 1.18.7821.2489 release has added Application Launcher for Drive (by Google) extension to the Chrome browser. After installing the Drive Client on Windows, Chrome menu icon shows a notification dialog to enable or remove the added extension.

Once you enable it, it allows to open files on Google Drive from the browser in compatible/supported apps installed on your computer, for e.g. when you right click on a PDF file and select ‘Open with’, you’ll see the applications that can open it on your computer like Sumatra PDF and other, check the screenshot below.

Google drive open with list of applications on computer

Update: Google has officially announced about this extension, for more details, read this blog post.

Download Application Launcher for Drive (by Google) from Chrome Web Store. You can uninstall it anytime like other extensions by visiting Chrome://extensions page.