Drone Industry Soars: Govt Disburses $3.6M to 23 Firms Under PLI Scheme for Drone Manufacturing

Indian Government Boosts Drone Industry with $3.6 Million Grant for 23 Firms under PLI Scheme.

The Indian drone industry is set for a significant boost as the Civil Aviation Ministry has disbursed about $3.6 million to 23 beneficiaries during FY23 under the production-linked incentive (PLI) scheme for manufacturing drones and drone parts. The government's PLI scheme aims to promote local manufacturing and reduce the nation's dependence on imports, aligning with the vision of AatmaNirbharBharat.

On July 6, 2022, a preliminary list of 23 PLI beneficiaries was made public, including 11 component manufacturers and 12 Drone Manufacturers. These companies are expected to play a vital role in strengthening the drone ecosystem in India and contributing to the nation's economic growth.

The PLI Scheme for drones and drone components was announced on September 30, 2021, with an emphasis on promoting drone technology in various sectors such as Agriculture, Healthcare, and Logistics. The Union Budget 2022 further encouraged the promotion of drones by supporting start-ups and providing training at industrial training institutes (ITIs) for 'Drone Shakti.'

Finance Minister Ms. Nirmala Sitharaman highlighted the government's focus on promoting Drone-as-a-Service (DrAAS) during the presentation of the Union Budget 2023. The Pradhan Mantri Skill Development Mission, under the Pradhan Mantri Kausal Vikas Yojana 4.0, aims to train lakhs of young people over the next three years in fields such as drones, Artificial Intelligence, Coding, and other soft skills.

The PLI scheme followed the liberalized Drone Rules 2021, which streamlined the regulatory environment for the drone industry. With this incentive scheme, the drones and drone components manufacturing industry may see an investment of over $605.6 million over the next three years. Furthermore, the annual sales turnover of the drone manufacturing industry may grow from $7.3 million in 2020-21 to over $109 million in FY24.

As the Indian drone industry continues to evolve and expand the government's support through the PLI scheme and other initiatives is expected to pave the way for increased innovation, Job Creation, and Economic Growth.