Looking at India’s drone future, the ₹15 billion PLI 2.0 scheme promises localisation and manufacturing incentives, aiming to reduce imports and boost domestic demand.
The Indian government is preparing to launch a second production-linked incentive (PLI) scheme for the drone industry, with an outlay reportedly exceeding ₹15 billion. The proposal, aimed at strengthening domestic manufacturing and reducing reliance on imports, is awaiting Cabinet approval, according to a report by the Hindu Businessline.
The scheme is designed to encourage local production of drones and components, while also supporting allied services such as leasing and software platforms for unmanned aircraft systems (UAS).
At present, around 50–60 per cent of drone components used in India are imported. The new framework seeks to raise localisation levels to about 30 per cent of the total drone value.
Incentives are likely to be structured around sales value, value addition, and the proportion of localised components. Beyond manufacturing, the scheme is expected to cover leasing models and operational software, aiming to build a comprehensive ecosystem for drones.
India currently has approximately 300 drone manufacturers producing UAS for applications across defence, agriculture, infrastructure, and surveillance. Industry estimates place the sector’s size at ₹120-140 billion, with demand projected to grow steadily as adoption increases in agriculture, infrastructure monitoring, and security operations.
The proposed PLI 2.0 builds on the earlier scheme introduced in 2021, which offered incentives worth ₹1.2 billion over three years.
That programme calculated benefits based on annual sales revenue from drones and components, net of goods and services tax, minus input costs.
