The manufacturing of drones or unmanned aerial vehicles (UAV) is one such sector that is receiving a lot of government support and attention.
Drones have numerous applications, including agriculture, defence, law enforcement, surveillance, delivery services, worksite efficiency, private occasions, and so on. With the government pledging to make India a global hub for drone manufacturing by 2030, the prospects for growth in this sector are extremely promising.
According to the civil aviation ministry, India’s drone sector will generate revenue of Rs 12,000-15,000 crore by 2026, up from around Rs 80 crore now.
Drone rules
The civil aviation ministry has recently made numerous changes to the country’s drone laws/rules. The government has removed the requirement to obtain a remote pilot certificate in order to fly small to medium-sized drones weighing up to 2 kg for non-commercial purposes.
The government has also brought in changes to create a digital platform and have relaxed norms to facilitate a single window clearance. “The idea is to create an industry-friendly framework to accelerate the use of drones in various industrial applications which will encourage more players and introduction of latest technologies in this sector,” said Arun Malhotra, founding partner and portfolio manager at
CapGrow Capital Advisors.
In comparison to previous rules, Drone Rules 2021 have eliminated several forms and permissions in order to promote the growth of India’s drone industry. Previously, drone operators and manufacturers had to fill out 25 forms, which have now been reduced to only five, and the total number of documents has also been reduced significantly.
“With the new rules in place, the security clearance and lengthy approvals comprising unique authorisation number, operator permits, drone port authorisation etc are no longer required and this will facilitate the growth and encourage more players to come,” Malhotra said.
Also, the airspace over which one can fly a drone has now been increased to almost 85 percent of India’s total air space, a six-fold increase from before.
PLI Scheme
The PLI (performance linked incentive scheme) launched by the government in August 2021 will not only help encourage domestic players to play a pivotal role in the development of this sector but will also reduce country’s dependence on imports.
The PLI scheme, which has an outlay of Rs 120 crore spread over three years for drone manufacturers, has also put a ban on the imports of drones. Given the huge demand and market growth, the number of drone start-ups in the country has jumped 34.4 percent between August 2021 and February 2022. India now boasts of 220 drone startups.
