Enabling India’s Drone Ecosystem – Policy Suggestions

With the aim of making India a drone hub by 2030 and a $30 billion industry, the Government of India has taken several steps to promote India’s budding drone industry. These include the liberalised Drone Rules, 2021, rationalised norms for drone pilot, establishment of drone schools, and the Product Linked Incentive (PLI) scheme launched in 2021 to boost manufacturing in the drone industry. The above steps open up possibilities for various use-cases such as drone deliveries (including that of essentials items, such as medicines, blood, and transplant organs), land mapping for surveys, agricultural purposes, mining, surveillance, defence amongst others. Given the accelerated growth of the drone ecosystem and the policy impetus, it is important to continuously identify and address the regulatory and policy challenges that the ecosystem participants may face. 

The report highlights some of these challenges being faced by the industry. It explains the skill and talent related challenges, issues with respect to the research and development related exemptions for private entities, import concerns vis-à-vis the SCOMET categorisation, the challenges faced in the government procurement process, and gaps which make it difficult to avail benefit of existing government schemes for start-ups and Small and Medium Enterprises (SMEs). The report proposes possible solutions that the Government may consider.