The Union Budget 2025 underscores the government’s unwavering focus on deep-tech innovation, with a particular emphasis on the fast-evolving deep-tech sector. For drones, a notable highlight is the enhanced spending under the Production-Linked Incentive (PLI) scheme for drones and their components, which has increased from INR 33 crore to INR 57 crore within a total outlay of INR 120 crore. This signifies the growing industry participation and adoption, reinforcing the need for continued policy support to sustain this momentum.
To unlock the full potential of this transformative technology, a substantially larger incentive—ranging from INR 1,000 crore to INR 2,000 crore over a five-year period—is imperative. Moreover, the INR 20,000 crore allocation for private-sector-driven R&D, along with the launch of the National Geospatial Mission, is set to propel advancements in autonomous systems, precision mapping, and next-generation infrastructure planning.
The demand for accurate and actionable geospatial data is at an all-time high, driven by the increasing reliance on data-driven solutions across industries. Drone technology is at the forefront of this evolution, enabling the capture of centimeter-level, high-resolution, precise, and real-time geospatial data, which can be converted to proper ortho-rectified maps for geographic measurements, unlike satellite data. One such example is Operation DRONAGIRI under the National Geospatial Policy 2022, which aims to leverage geospatial technologies to enhance decision-making, improve citizen services, and drive sustainable development.
These initiatives collectively position India as a frontrunner in drone and geospatial intelligence, fostering innovation and self-reliance in this vital industry. Expanding the PLI scheme to include services such as drone leasing, indigenous software development, and counter-drone technologies will help build a more holistic ecosystem. Introducing targeted upfront R&D funding for the drone industry will address financial constraints and expedite technological breakthroughs and drone sub-systems indigenisation.
Furthermore, strengthening collaboration between public research institutions and private aerospace firms will enhance R&D efficiency. Government-backed laboratories and universities can act as research centers, focusing on deep-tech innovations that will shape the future of UAVs and autonomous aerospace systems.
The potential for the drone ecosystem in India is immense. According to a NITI Aayog report, the UAV market is projected to reach $15 billion by 2030, with the sector expected to grow at a compound annual growth rate (CAGR) of 35% between 2025 and 2030.
As a nation, we stand to gain the most by integrating drone technology into our baseline governance and security infrastructure. The technology has already proven its capabilities and now is the time to induct it at full scale to maximise its impact. The government can play a crucial role in the accelerated adoption of this technology by carving out specific budgets andprograms to induct drones across sectors and industries like security & surveillance, infrastructure, agriculture, mining, and forests, to name a few.
India stands at the cusp of becoming a global drone hub, with policy formulation and effective execution playing a pivotal role in this journey. Enabling regulatory frameworks and swift on-ground implementation will drive the innovation, adoption, and expansion of the drone sector. Additionally, simplifying export regulations and promoting Indian drone technology through government-to-government initiatives will further establish India as a global leader in the industry
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