According to the UnivDatos Market Insights, the PLI scheme for drone manufacturing, drone rules 2021 simplification, strong defense sector demand, agricultural modernization initiatives, smart infrastructure development, Make in India push for indigenous drones, growing drone-as-a-service model drive the India Drones market. As per their “India Drones Market” report, the Indian market was valued at USD ~1150 million in 2024, growing at a CAGR of about 20.50% during the forecast period from 2025 - 2033 to reach USD million by 2033.

Industries and organizations in India are immersed in a remarkable shift in aerial technology, primarily concerning drone technology, referred to as Unmanned Aerial Vehicles. Originally used for military spying and aerial space monitoring only, drones have gained their stable ground in agriculture, construction site inspection, supply chain and logistics sectors, policing and rescuing, and in cases of disaster monitoring. This evolution is not happening only because of the technological initiative, but because governments introduce liberal laws and cultures of the startup societies.

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Policy Reforms Fueling Drone Growth

This has mainly been occasioned by the fact that the Indian government has been very active in the liberalization of the market and the encouragement of local production. The Central Government has undertaken a series of reform measures to make India a global drone hub. Some of these are as follows:

·        All application forms under Drone Rules, 2021 have been made online on the Digital Sky Platform on 26th January 2022.

·        Drone (Amendment) Rules, 2022 have been notified on 11th February 2022, abolishing the requirement of a drone pilot license. Now, a remote pilot certificate is issued by a DGCA-authorised Remote Pilot Training Organisation (RPTO), which is adequate for the remote pilot to operate drones.

·        As per Drone Rules 2021 and Drone Amendment Rules 2022, drones being operated for research, development, and testing purposes are free to operate in the green zone, such that the area where such drones are being operated is under the control of the testing entity. For operating in the yellow and red zones, permission is required from the Air Traffic Control and the Central Government after checking multiple parameters like registration of the drone and the pilot, the drone model, the flight plan, the purpose of operation, etc.

·        Mission 'Drone Shakti' has been announced for supporting drone start-ups and promoting Drone-as-a-Service (DrAAS) as part of the Union Budget on 1st February 2022.

The Production-Linked Incentive (PLI) Scheme for drones and drone components was notified on 30 September 2021 by the Ministry of Civil Aviation to promote the manufacturing of drones and drone components in India. The details of the PLI scheme are as follows:

·        An incentive of Rs. 120 crore has been provided for Indian manufacturers of drones and drone components under the PLI Scheme.

·        The PLI that can be claimed by a manufacturer is 20% of the value added by such manufacturer. The PLI rate is constant at 20% for all three years.

·        Minimum value addition is specified as 40% of net sales.

·        Eligibility norm for Micro, Small and Medium Enterprises (MSME) and startups is specified as Rs. 2 crore of annual sales revenue for drone manufacturers and Rs. 50 lakhs of annual sales revenue for drone component manufacturers.

·        PLI for a beneficiary is capped at 25% of the total annual outlay to allow widening of the number of beneficiaries.

·        In case a manufacturer fails to meet the threshold for the eligible value addition for a particular financial year, the manufacturer will be allowed to claim the lost incentive in the subsequent year if the manufacturer makes up the shortfall in the subsequent year.

The common programs like the SVAMITVA scheme also utilize the drone for land mapping in rural areas of India:

The Revolutionary Impact of SVAMITVA: Achievements of the Scheme

·        Distribution of 57 lakh SVAMITVA property cards across 46,351 villages in 10 States (Chhattisgarh, Gujarat, Himachal Pradesh, Madhya Pradesh, Maharashtra, Mizoram, Odisha, Punjab, Rajasthan, Uttar Pradesh) and 2 Union Territories (Jammu & Kashmir and Ladakh) on 27 December 2024.

·        The drone survey has been completed in 3.17 lakh villages.

·        Drone survey has been completed in the UTs of Lakshadweep, Ladakh, Delhi, Dadra & Nagar Haveli, and Daman & Diu, and the states of Madhya Pradesh, Uttar Pradesh, and Chhattisgarh.

Startups Driving Innovation and Application

The ecosystem of drone start-ups is vibrant in India, which involves the manufacturing of drones, the development of software required to operate these drones, operating the fleets, and business analytics. Moreover, rising venture capital funding, government-sponsored funds, and public-private joint ventures, these organizations are using drones in various industries with great effectiveness.

For instance, in April 2025, Chennai-based drone technology startup Garuda Aerospace raised 100 crore rupees (USD 11 million) in a series B funding round led by Venture Catalysts. The round also included participation from undisclosed investors. The company announced that the funding was secured at a post-money valuation of USD 250 million. Garuda Aerospace plans to use the funds to expand its production facilities and enhance research and development efforts.

Expanding Horizons and Technological Advancements

The drone revolution in India is no longer just restricted to the hardware aspect, where only drones were being developed, but now various solutions through Artificial Intelligence, cloud computing, IoT, and Geographic Information Systems are also being applied to drones. Drones are being used with multispectral and thermal cameras for agriculture and crop management, LiDAR for surveying, and video monitoring for security services.

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India's Drone Revolution

The drone industry in India can be seen as one of the most classic models of how policy direction and start-up innovation are advantageous in developing a newer technology market. From enabling farmers in the use of aerial information to arming soldiers with real-time information, drones are now a necessity in so many fields. With these setting constants, an advancement in rules, an increase in investments, and expansion of its application, India has all the potential to become the manufacturing hub for drones shortly.

Related Report:-

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Anti-Drone Market: Current Analysis and Forecast (2025-2033)

Drone Logistic and Transportation Market: Current Analysis and Forecast (2024-2032)

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