India’s ₹18 Billion Push for Self-Reliant Drone Industry

India gears up for a bold drone revolution with massive incentives, hidden strategy, and a race for self-reliance.

The Civil Aviation Ministry is planning to offer a major incentive package worth ₹16–18 billion to strengthen India’s drone manufacturing sector and reduce dependence on Chinese imports. This initiative, tentatively named Mission Drone Shakti, aims to support domestic production and encourage innovation over five years.

Mission Drone Shakti is inspired by India’s Production-Linked Incentive (PLI) schemes, which cover 14 sectors, including electronics, textiles, automobiles, and pharmaceuticals. These schemes, with a total outlay of ₹1.97 trillion, link incentives to measurable outcomes like domestic value addition and increased sales.

Out of the total allocation, around ₹5–6 billion is expected to be set aside for research and development. The remaining ₹10–12 billion will be used to support the manufacturing of key components such as propellers, motors, and airframes, as well as sales-based incentives.

A key part of the plan is to invest in research and development while also building local manufacturing capabilities. The scheme will support the production of critical drone components and promote wider adoption of drones across industries through sales incentives.

- Advertisement -

The government is expected to introduce the program in FY27, targeting private Indian companies. Once the details are finalised and approved by the Finance Ministry, the proposal will be sent to the Cabinet for final approval.

Companies will receive benefits based on the level of domestic value addition they achieve, with a minimum requirement likely to be set. The financial incentives will be directly linked to this value addition.

Overall, the initiative is expected to boost innovation, create jobs, and strengthen India’s position as a manufacturing hub for advanced technologies. It also supports the government’s broader Make in India mission and aims to develop a strong and self-reliant drone ecosystem in the country.

- Advertisement -
Loading form…
Nikita Kumari
Nikita Kumari
Nikita Kumari is a Journalist at EFY. She decodes deals, investments, and policy shifts, redefining the semiconductor and tech landscape.

Industry's Buzz

Safran

Safran Secures First NATO Naval Order For Optronic Sights With MSI

0
Safran brings Optronic Sights to MSI's naval and land gun systems. Safran Electronics & Defense and MSI-Defence Systems have signed a Franco-British agreement to fit...
Amber Enterprises

Amber Enterprises Completes Full Acquisition of Power-One Micro Systems

0
Amber Enterprises subsidiary acquires remaining 40% stake in Power-One through share swap. Amber Enterprises has bought out its remaining minority partners in Power-One. IL JIN...
Image for representation purpose

Cosmoserve Opens Base 1 To Develop Space-Grade Electronics In-House

0
Cosmoserve Space has opened a new facility in Hyderabad to develop space-grade electronics, optics and avionics in India, with the aim of cutting reliance...
Image for representation purpose

Nemi Targets Nasdaq Listing With USD 400 Million Valuation

0
Nemi is going public. The plan? A $400 million Nasdaq listing. The company just signed a definitive business combination agreement with BHAV Acquisition Corp. This...
LG logo

LG Electronics India to Step Into India’s Automotive Market

0
The South Korean headquarters of LG Electronics will continue to support the business with global technologies and existing relationships with global car manufacturers. LG Electronics...

Learn From Leaders

Roberto Gatti, Founder and CEO of Delvitech

The Eye That Spots Defects Before They Happen

0
Most inspection machines tell you a board failed. Delvitech's tells you when it is about to.Every inspection stage in a factory traditionally needs its...
Pravin Patel, Founder and Chairman, Brio Agri, India

“Our goal is not to replace farmers, but to empower them with better tools,...

0
In an exclusive interaction with EFY's Saba Aafreen, Pravin Patel, Founder and Chairman of Brio Agri, discusses building hydroponics and controlled-environment agriculture in India,...

Does India’s Chip Packaging Growth Need Local Materials At Scale?

0
What will it take for specialised semiconductor materials manufacturing to grow in India? Packaging volumes will be a key factor as OSAT facilities move...
Ronak Kumar Samantray, Founder, TM2Space Technologies Pvt Ltd.

“Our goal is to build data centres in space.” – Ronak Kumar Samantray, TM2Space

0
A space startup aims to build orbital data centres, letting users run AI models and store data on satellites while also supplying satellite hardware...

India’s Photonics Puzzle Is Finally Coming Together 

0
Can India turn its scattered photonics capabilities into a stronger industry? A new association aims to connect the ecosystem and strengthen the domestic value...

Startups

EVE NET Turns Spare Smartphone Capacity Into An AI Cloud

0
What if the phone in your pocket could help run AI? A Mumbai-based startup wants to cut AI computing costs by tapping into millions...

Vimag Labs’ Magnet-Free Motors Set To Redefine EV Efficiency

0
Can software replace rare-earth materials? This Bengaluru startup uses virtual magnets to eliminate traditional permanent magnets, boosting EV motor efficiency up to 95 per...

Pine Labs Q2 FY27 Profit Soars 6.5x

0
Pine labs said that it processes 25 million transactions per day, a 22 per cent increase from the previous year. Fintech company Pine Labs, reported...
Dr Venkata Sai Kiran, Founder, Red Balloon Aerospace

How Near-Space Platforms Could Revolutionise Broadband Connectivity – Dr Venkata Sai Kiran, Red Balloon...

0
As nations explore high-altitude platforms for communication, surveillance, and scientific research, Red Balloon Aerospace is developing super-pressure balloons, tethered aerostats, and airships for near-space...
Manish Seth, Founder, Vimag Labs

Beyond Rare-Earth Magnets: How Vimag Labs Is Reimagining Electric Motors – Manish Seth, Vimag...

0
Can software replace rare earth magnets in electric motors? Manish Seth of Vimag Labs speaks to EFY’s Nitisha Dubey about Virtual Magnet Technology, which...