The sky over Delhi was lit up with 1,000 drones, when a spectacular event put up by ‘made-in-India’ drones highlighted this year’s ‘Beating Retreat’ ceremony in January 2022. Notably, the 1,000 drone show set India on the world stage, precisely in the top four after the U.K, China, and Russia. This was followed by by the speech of Budget 2022, wherein Finance Minister Nirmala Sitharaman announced that the Centre will promote ‘Kisan Drones‘ to help farmers assess crops, digitise land records as well as spray insecticides and nutrients.
As the government now adds PLI Scheme benefits to manufacturing of drone and drone components, the growth that now awaits this sector would be rapid and exponential. The list of beneficiaries by MoCA includes five drone manufacturers and nine drone component manufacturers. The scheme would provide a total incentive of INR 120 crore over three financial years, which is approximately double the combined turnover of all domestic drone manufacturers in FY 2020-21. What is worth highlighting is the fact that the PLI rate here is 20% of the value-added, which is among the highest rates among PLI schemes. Manufacturers who fail to satisfy the value addition criteria in 2021-22 will also be able to recover the lost incentive in the following year if they make up the shortfall in 2022-23, which is a unique element of the drone PLI scheme. Apart from the PLI Scheme, the government of India has implemented various reforms with an aim to make India a worldwide drone hub by 2030. This includes publication of the Drone Airspace Map 2021 which opened nearly 90% of Indian airspace as a green zone up to 400 feet, The UAS Traffic Management (UTM) policy framework 2021, The Drone Certification Scheme 2022 to make it easier for drone manufacturers to obtain a type certificate and introduction of the Drone (Amendment) Rules, 2022.
The global commercial drone market size was valued at USD 13.44 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 57.5% from 2021 to 2028. In such a time, the ban that the central government imposed on importing drones (The Drone Import Policy 2022) has turned out to be a powerful step in making India self-reliant, as it has hugely encouraged domestic manufacturers. As per the estimates by Civil Aviation Ministry, India’s drone sector is expected to achieve a total turnover of Rs. 120-150 billion (US$ 1.63-2.04 billion) by 2026, from its current turnover of about Rs. 800 million (US$ 10.88 million). In addition, the government plans to attract investments of Rs. 5,000 crore (US$ 669.07 million) in the next three years in the drone manufacturing industry and create over 10,000 job opportunities.
Drones have found quite a good space in the Indian landscapes. In August 2021, the Ministry of Civil Aviation liberalised the drone use policy. This was followed by the Department of Agriculture and Farmers’ Welfare issuing the SOP for using drones to spray pesticides in agricultural, forest lands and non-cropped areas. This was soon followed by India becoming the first-ever country to commercially produce and spray Nano Liquid Urea through Drone in Gujarat’s Bhavnagar. A drone subsidy proposal was also included later in the drone policy. It is through this clause that FPO’s can now receive a grant of up to 75% of the cost of an agriculture drone. Innovative drone-powered solutions and government initiatives like the Svamitva scheme (Survey of Villages and Mapping with Improvised Technology in Village Areas), which is surveying inhabited Indian rural lands using drone technology are already taking advantage of these measures.
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