India is planning to launch a $234 million (approximately INR 1,950 crore) incentive program to boost its domestic drone manufacturing industry. This initiative aims to reduce the country's reliance on imported drone components, particularly from China, and foster a self-reliant drone ecosystem. The move comes after the increased use of drones during a recent conflict with Pakistan, highlighting the strategic importance of unmanned aerial vehicles (UAVs) in modern warfare and security.
The incentive program, reportedly spanning over three years, will encourage domestic manufacturing of drones, software, and anti-drone technology. This initiative aligns with the Indian government's "Make in India" mission and aims to position India as a global hub for drone technology by 2030. The Production Linked Incentive (PLI) scheme for drones and drone components, launched in 2021 with a total incentive of INR 120 crore, has already catalyzed innovation in the sector.
India's drone market is experiencing rapid growth, driven by increasing demand across various sectors, including defense, agriculture, infrastructure, and surveillance. The market is projected to grow from $654 million in 2024 to $1.437 billion by 2029, exhibiting a compound annual growth rate (CAGR) of 17.0%. The number of drones in the country is expected to surge from approximately 10,800 units to over 61,000 during the same period.
The Indian government has been actively promoting the domestic drone industry through various policy reforms and initiatives. These include the liberalization of drone rules in 2021, which relaxed regulations and made it easier to operate drones in India. The government has also designated 90% of Indian airspace as "green zones," allowing drones to operate freely up to 400 feet. Furthermore, the import of foreign drones has been restricted to encourage domestic manufacturing. However, import of drone components is permitted.
The defense sector is a key driver of growth in the Indian drone market. Indigenous military drones are increasingly being adopted for reconnaissance, surveillance, and combat roles. Tactical UAVs like SWiTCH, NETRA, and Rustom-II are being used to support high-altitude border missions, anti-insurgency operations, and surveillance over disputed regions. Operation SINDOOR, a recent military response, showcased the seamless integration of indigenous hi-tech systems, including drone warfare, into national defense.
The increasing use of drones in agriculture is also contributing to the growth of the Indian drone market. Drones are being used for pesticide spraying, crop monitoring, and yield estimation. The Ministry of Agriculture has introduced standard operating procedures for drone-based pesticide application on various crops.
Several Indian companies are emerging as key players in the drone manufacturing industry. These companies are developing advanced drone solutions for various applications, including defense, agriculture, infrastructure, and surveillance. Some notable drone manufacturers in India include IG Drones, ideaForge, NewSpace Research & Technologies, Paras Defence & Space Technologies, Asteria Aerospace and Garuda Aerospace.
While India's drone industry is still in its early stages of development, the government's support and the increasing demand for drones across various sectors are creating a favorable environment for growth. The $234 million incentive program is expected to further boost domestic drone manufacturing and help India achieve its goal of becoming a global drone hub.
