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As part of the plan, SIDBI will offer affordable loans to drone tech companies for working capital and R&D, helping strengthen India’s drone ecosystem.
In a major push to strengthen India's position in the global drone technology market, the government is set to launch a ₹2,000 crore Production-Linked Incentive (PLI) scheme aimed at accelerating drone manufacturing, software development, and anti-drone systems over the next three years. The initiative is designed to promote innovation, enhance local production capabilities, and reduce dependency on foreign drone technologies.
The scheme will provide targeted incentives to drone manufacturers, component suppliers, and service providers involved in research, development, and deployment of unmanned aerial vehicles (UAVs). It will also include subsidies for drone parts, software, and surveillance systems, along with funding support for anti-drone technologies, which are becoming critical for national security and public safety.
One of the core objectives of this incentive programme is to achieve at least 40% localization of key drone components by the fiscal year 2027–28. This includes motors, flight controllers, navigation systems, communication modules, and power sources, all of which are currently imported in large volumes.
To ensure that smaller players and startups in the drone sector can participate meaningfully, the government has roped in the Small Industries Development Bank of India (SIDBI) to offer low-interest loans for working capital and R&D. This move is expected to empower drone tech startups and MSMEs by easing their access to funds and boosting innovation across various applications such as agriculture, logistics, defense, infrastructure, and surveillance.
India’s drone market has seen rapid growth due to expanding use-cases and increasing government support, including regulatory reforms and digital mapping policies. This upcoming ₹2,000 crore drone incentive scheme further aligns with the country’s Atmanirbhar Bharat (Self-Reliant India) mission and aims to position India as a global drone hub by creating a sustainable and self-sufficient drone ecosystem.
The scheme is expected to be rolled out in the coming months, with official guidelines and eligibility criteria to be announced shortly.
The scheme will provide targeted incentives to drone manufacturers, component suppliers, and service providers involved in research, development, and deployment of unmanned aerial vehicles (UAVs). It will also include subsidies for drone parts, software, and surveillance systems, along with funding support for anti-drone technologies, which are becoming critical for national security and public safety.
One of the core objectives of this incentive programme is to achieve at least 40% localization of key drone components by the fiscal year 2027–28. This includes motors, flight controllers, navigation systems, communication modules, and power sources, all of which are currently imported in large volumes.
To ensure that smaller players and startups in the drone sector can participate meaningfully, the government has roped in the Small Industries Development Bank of India (SIDBI) to offer low-interest loans for working capital and R&D. This move is expected to empower drone tech startups and MSMEs by easing their access to funds and boosting innovation across various applications such as agriculture, logistics, defense, infrastructure, and surveillance.
India’s drone market has seen rapid growth due to expanding use-cases and increasing government support, including regulatory reforms and digital mapping policies. This upcoming ₹2,000 crore drone incentive scheme further aligns with the country’s Atmanirbhar Bharat (Self-Reliant India) mission and aims to position India as a global drone hub by creating a sustainable and self-sufficient drone ecosystem.
The scheme is expected to be rolled out in the coming months, with official guidelines and eligibility criteria to be announced shortly.
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