Drone industry hopes for higher PLI outlay in budget

In September 2021, the government announced a PLI scheme for the drone sector for a period of three years with a total financial outlay of ₹120 crore. These subsidies were aimed at boosting manufacturing of drones, components, and also covered software development.

The chief executive of Ideaforge Ltd, the country’s largest drone maker, said an increased outlay will help the country to reduce import dependency.

“Given the potential of the technology and the industry, we need a much larger scheme amounting to ₹1,000-2,000 crore to unlock this opportunity over at least 5 years,” said Ankit Mehta, CEO of ideaForge. “This will help to develop the domestic supply ecosystem and reduce import dependency.”

Navi Mumbai-based Ideaforge, which started manufacturing drones almost two decades back and went public in 2023, recorded revenue of ₹37.10 crore in Q2 FY25

Industry body Drone Federation of India (DFI) also believes a revised scheme can help grow the industry and bring in more investments.

“The upcoming budget is a crucial moment to strengthen India’s position as a global leader in drone technology,” said Smit Shah, president of DFI. “A revised PLI scheme that reflects the unique needs of the sector and encourages deeper investments is much needed.”

DFI has over 200 drone manufacturers and over 350 service providers as its members.

Call for dedicated R&D fund

The drone industry is pitching for a dedicated R&D fund for the entire ecosystem. “An upfront R&D fund is crucial for research, technological advancement, product development, and exports,” Mehta said. “Dedicated funding for the development of indigenous drone components is essential for building supply chain resilience and reducing dependency on imports.”

The industry is also seeking a dedicated credit line for drone manufacturers to scale up operations and develop infrastructure. The industry wants the government to ban imports of critical subsystems and components from countries sharing land border with India to ensure cybersecurity and promote indigenization.

The industry has suggested that the government should promote drone adoption in governance, security, and infrastructure monitoring, which can create a sustained demand for the sector. A dedicated fund for using drones in healthcare delivery, public safety and disaster response can give the sector a big boost.