India Announces ₹1,950 Crore Incentive for Domestic Drone Manufacturing
Published: July 4, 2025
By: Defence Stories India – Trusted & Verified
IMAGE CREDIT TO RESPECTIVE OWNERS
Introduction
The Government of India has announced a major initiative to boost indigenous drone manufacturing with an incentive package of ₹1,950 crore (approx. $234 million). The decision, made in the wake of recent border security developments and rising geopolitical tensions, is aimed at reducing reliance on imported drone components and encouraging domestic innovation in both civilian and military unmanned aerial systems (UAS).
What the Incentive Covers
The three-year scheme will focus on:
- Research and development for indigenous drone technologies
- Production-linked incentives (PLIs) to local manufacturers
- Testing and certification support for drone startups and MSMEs
- Procurement support for defence and homeland security drones
The Ministry of Defence, Ministry of Civil Aviation, and Ministry of Home Affairs will jointly administer the program.
Why Now?
India’s strategic planners have accelerated the focus on drone technology for a few key reasons:
- Recent Cross-Border Incidents: Drones have played a major role in surveillance and infiltration attempts along the western border.
- Conflicts Abroad: Use of drones in global conflicts like Ukraine-Russia has demonstrated their strategic value.
- Dependency Risk: Many Indian drone systems rely on imported sensors, flight controllers, and GPS modules.
The incentive program is intended to change this by building an independent supply chain and developing world-class Indian drone technologies.
Key Areas of Focus
| Segment | Focus |
|---|---|
| Defence | Combat drones, loitering munitions, swarm systems |
| Homeland Security | Border patrol, counter-drone tech, surveillance |
| Civilian | Agriculture, disaster response, logistics |
Industry Reaction
Indian drone startups and defence manufacturers have welcomed the move:
“India has the talent and technical base. What we needed was the government’s backing — and this incentive is a game-changer.”
— CEO, NewSpace Research & Tech
“This will give India the opportunity to lead globally in unmanned systems.”
— VP, IdeaForge Technologies
Strategic Impact
- Reduces import dependency on Chinese and Israeli drone components
- Boosts indigenous manufacturing under Aatmanirbhar Bharat
- Improves readiness for drone-based border threats
- Promotes dual-use innovation (civil + military)
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Conclusion
The ₹1,950 crore drone incentive package signals India’s recognition of drones as not just a future technology, but a present necessity. With growing threats, rising operational demand, and the promise of global leadership in unmanned systems, this initiative is both timely and transformative.
For India's drone ecosystem — spanning defence, security, and civilian use — the sky is no longer the limit.
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