India Launches $234 Million Incentive Scheme to Boost Indigenous Drone Manufacturing
INDIAN DEFENCE
In a bold step toward strengthening its defence and technological autonomy, the Government of India has unveiled a $234 million (approximately ₹1,950 crore) incentive scheme aimed at catalyzing domestic drone production. The initiative, rolled out under the Production-Linked Incentive (PLI) framework, is designed to foster innovation, attract private investment, and significantly reduce India’s dependency on imported unmanned aerial vehicles (UAVs). With increasing use cases for drones across military, agricultural, and industrial sectors, this scheme is set to transform India into a global drone hub by 2030.
The decision comes amid growing security challenges, especially after multiple drone incursions along the India-Pakistan border and the increasing use of drones in modern warfare. Recognizing the strategic and tactical value of UAVs—ranging from surveillance and reconnaissance to strike capabilities—the Indian government aims to establish a resilient domestic supply chain. The policy covers incentives for both drone manufacturers and component suppliers, ensuring that indigenous value addition becomes a core metric for eligibility.
One of the key goals of the scheme is to encourage innovation in high-end drone technology, including AI-based navigation, anti-jamming systems, and long-range endurance capabilities. Startups and MSMEs are expected to be major beneficiaries, with specific provisions allowing new entrants to access capital and receive technical hand-holding. The initiative also mandates that at least 40% of the drone’s components must be made in India by 2028, laying the groundwork for a self-sustaining drone ecosystem.
To complement this initiative, the government has also relaxed rules for drone usage and approved dedicated drone airspace corridors. Training centers for UAV pilots, as well as R&D hubs, are being set up across defence and civil institutions. Public sector giants like HAL and BEL are also collaborating with private firms to jointly develop defence-grade drones. The initiative is expected to generate over 10,000 new jobs, along with significant export potential in regions such as Africa, Southeast Asia, and the Middle East.
In conclusion, India’s $234 million incentive push is not just an economic catalyst—it’s a national security imperative. As drone warfare becomes increasingly central to modern combat, surveillance, and logistics, having a strong indigenous drone industry ensures both strategic independence and long-term technological leadership. With the right execution, this initiative could elevate India to the ranks of top global drone producers within the next decade.
