Indian Govt to Launch Rs 2000 Crore Incentive Scheme for Drone Manufacturing

The Indian government is planning to launch a new Rs 2,000 Cr ($234 Mn) incentive scheme to boost drone manufacturing in the country, according to Reuters.

It is a three-year drone incentive programme worth Rs 2,000 Cr to reduce dependence on imported parts and compete with Pakistan which has advanced its drone tech with help from China and Turkey.

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The scheme will support the local production of drones, components, software, anti-drone systems and related services. It follows the earlier Rs 120 Cr PLI scheme from 2021 which had limited impact due to funding issues.

Triggered by a recent India-Pakistan drone standoff, the initiative aims to build a strong homegrown drone industry and localise at least 40% of key components by FY2028.

While India still relies on imports—especially from Israel and China—for parts like motors and sensors, its growing domestic drone sector, with over 600 companies, is offering more cost-effective solutions.

The Civil Aviation Ministry is leading the effort, with SIDBI providing low-interest loans to support R&D and business growth. The programme is expected to boost innovation and enhance national security.

India is currently home to over 600 companies involved in drone manufacturing and related services. The upcoming incentive scheme aims to boost this growing sector, enhance national security and accelerate innovation in drone and unmanned systems technology.