The Government of India has approved a ₹2,000 crore (US $234 million) incentive programme spanning three years, designed to support drone manufacturing, components, software, counter-drone systems, and allied services. 🇮🇳
This rollout reflects lessons from the May India–Pakistan border conflict—marking the first large-scale drone combat between the nations—and aims to reduce dependency on foreign components, especially amid rising regional competition
🎯 Why It Matters
- Strategic push: India is responding to its neighbour’s growing drone capability supported by China and Turkey, accelerating an “arms race” in regional UAV tech
- Value-chain localisation: A core goal is to have at least 40% of crucial drone components made domestically by FY 2027–28, cutting import reliance
- Beyond defence: Scheme covers civil drones too—spanning sectors like agriculture, logistics, research, and surveillance
- Complementing PLI: A step up from the modest ₹120 crore PLI programme of 2021; now backed with a far more robust structure and budget
🛠️ How It Works
- Scope: Supports manufacturing of UAVs, parts, software, anti‑drone tech, and services
- Financial support:
- Civil Aviation & Defence ministries spearheading implementation
- SIDBI to extend low‑interest loans for working capital and R&D
- Bonus incentives offered to manufacturers that locally source parts
🌐 Wider Ecosystem Impact
- 600+ companies are already operating in India’s drone manufacturing space
- Tamil Nadu emerges as a hub for UAV and electronic warfare systems, with companies like Garuda Aerospace scaling rapidly
- Drone Didi programmes and establishment of Drone Centres of Excellence across states highlight synergies in rural empowerment and skill-building
🔮 What’s Next?
- Scheme rollout to begin shortly, led by Civil Aviation and Defence ministries.
- PLI 2.0 is also in development, possibly adding another ₹1,000 crore to further drive drone R&D and infrastructure
- Monitoring outcome: Authorities will track import substitution, growth in domestic supply chains, job creation, and export capability.
✅ Bottom Line
The ₹2,000 cr Drone Scheme marks a bold leap forward in India’s quest for UAV self-reliance. By backing a comprehensive ecosystem—from manufacturing and financing to R&D and deployment—the government aims to position India as a global drone powerhouse while addressing strategic and civilian priorities.
