Under the PLI scheme, introduced on September 30, 2021, Indian drone and drone component manufacturers were allocated an incentive of Rs 120 crore spread over three financial years
To achieve the goal of making India a leading global hub for drones, the government needs to enhance the production-linked incentive (PLI) scheme and foster a robust ecosystem, a recent report suggests.
Under the PLI scheme, introduced on September 30, 2021, Indian drone and drone component manufacturers were allocated an incentive of Rs 120 crore spread over three financial years.
According to projections from the Ministry of Civil Aviation, the Indian drone manufacturing industry is anticipated to grow significantly, reaching Rs 900 crore by 2025, up from just Rs 60 crore in 2020-21. This data comes from a study conducted by Nexgen Exhibitions.
The report also forecasts a compound annual growth rate (CAGR) of 22.15 per cent for the Indian drone market during the period from 2024 to 2030.
With innovation and an expanding range of applications, India has the potential to become a global drone hub by 2030, the study noted. Key factors for achieving this vision include strengthening the domestic drone ecosystem, expanding the PLI scheme, increasing government procurement, and promoting the Make in India initiative.
Drones have already proven useful in areas such as border surveillance, disaster management, and COVID-19 management. The report also emphasised that the drone services industry, including logistics, data processing, and traffic management, is set to grow rapidly and surpass other related sectors soon.
The survey involved around 250 participants, including drone and unmanned systems manufacturers, innovators of anti-drone technologies, suppliers of components and sensors, software developers, GPS and geospatial solutions providers, and companies offering drone services. Institutes and research labs developing drones, as well as aerospace companies, also took part in the survey.
The survey was conducted across ten states: Uttar Pradesh, Madhya Pradesh, Delhi, Haryana, Rajasthan, Punjab, Maharashtra, Tamil Nadu, Karnataka, and Andhra Pradesh. It also reached out to foreign companies from the Middle East, Europe, the UK, the US, and Australia.
The upcoming Drone International Expo 2024, scheduled for July 4-5, is a major event for the drone industry in Asia, bringing together buyers, industry representatives, and stakeholders. This year’s expo will focus on UAVs, drones, and anti-drone systems for various applications.
“The industry is definitely getting a huge boost because of the Make in India movement and the visionary PLI Scheme of the government. Innovations and technological advancements done by Indian drone companies have caught the attention of the global markets, and growth in the Indian drone industry is attracting significant foreign investment,” said Aadhar Bansal, Director of Nexgen Exhibitions.
The statement added that the Indian government’s efforts through liberal policies and initiatives like Drone Shakti, increased air space, and the PLI scheme are collectively supporting the market’s growth.