The Indian government has increased its financial incentives for drone manufacturing by 37.5%, allocating a total of ₹165 crore ($20 million USD) over the next three years. This move aims to bolster domestic drone production, reduce import dependency, and position India as a leading global drone hub by 2030.
The Production-Linked Incentive (PLI) scheme, originally introduced in September 2021 with an outlay of ₹120 crore, has been significantly expanded. The federal budget presented on Tuesday revealed a higher allocation of ₹57 crore for the current financial year, a substantial increase from the ₹33 crore allocated in 2023-24.
"The government is focused on making India a drone hub by 2030," said a government official. "It is working hard towards the goal and has till date established 109 training organizations, issued 10,603 remote pilot certificates, 22,943 unique identification numbers for registered drones and 67 DGCA-approved type certificate for drone models."
India's burgeoning drone industry has been gaining momentum due to its diverse applications in both civilian and defence sectors. Drones are being utilized in agriculture, healthcare, emergency response, surveillance, and defence operations.
With over 400 drone startups currently operating in the country, the expanded incentive scheme is expected to attract even more players to the market. The civil aviation watchdog, the Directorate General of Civil Aviation (DGCA), has approved 116 remote pilot training organizations and issued 16,000 remote pilot certificates. Additionally, 70 unmanned aircraft system models have been type-certified, and 48 Indian companies are currently manufacturing drones.
"While the impact of drones in civil space is immense, its use in the defence space is critical, as India works to keep its borders safe," stated a second government official.
The PLI scheme has already shortlisted 23 small enterprises, including 11 drone component manufacturers, for incentives. However, Mark Martin, CEO and founder of Martin Consulting, an aviation advisory firm, emphasized the need for further government action.
"A lot more needs to be done by the government to expand usage of drones, and the increase in allocation to ₹165 crores seems on the right direction," Martin said. "The government needs to ensure that a substantial portion of it is aligned to local manufacturing of drones, encouraging operations or training facilities."
India's ambitious plan to become a global drone hub by 2030 is underpinned by relaxed regulations and generous incentives. The Economic Survey 2023-24 highlighted recent updates, including the establishment of more training centers, issuance of remote pilot licenses, registration of drones, and approval of drone models by the DGCA.
As the drone industry continues to evolve, India's commitment to fostering a thriving drone ecosystem is evident. With increased investments and supportive policies, the country is poised to emerge as a significant player in the global drone market.
