New Delhi: In a bid to strengthen domestic drone manufacturing and reduce reliance on imports, the Indian government is preparing to roll out a Rs 2,000 crore Production-Linked Incentive (PLI) scheme focused on unmanned aerial vehicles (UAVs), drone software, and anti-drone technologies.
The scheme, expected to be implemented over the next three years, aims to accelerate the development of indigenous drone technology by offering targeted incentives to manufacturers, component suppliers, and service providers engaged in the sector. A key goal is to achieve at least 40% localisation of essential drone components, such as motors, flight controllers, navigation systems, communication modules, and power sources by fiscal year 2027–28.
Currently, India imports a significant portion of these components, making the domestic industry dependent on foreign supply chains. The PLI scheme seeks to change this by encouraging local production and reducing import dependency, aligning with India’s broader push for self-reliance in high-tech sectors under the ‘Atmanirbhar Bharat’ initiative.
To widen participation, the government plans to involve the Small Industries Development Bank of India (SIDBI) in offering low-interest loans to startups and small manufacturers. This step is intended to improve access to working capital and research funding for emerging players in the drone space, particularly Micro, Small and Medium Enterprises (MSMEs).
The financial support will target various applications of drones, including agriculture, logistics, infrastructure monitoring, defense, and surveillance. By doing so, the scheme not only focuses on manufacturing but also encourages innovation and the creation of new use-cases for drone technology in India.
