India Unveils $230 Million Push for Drone Manufacturing After Operation Sindoor
Three people with knowledge of the situation told that India is planning to introduce a ₹20 billion ($234 million) incentive program for the production of both military and civil drones as part of a significant effort to boost its domestic drone manufacturing ecosystem.
The goal of the next three-year project is to create a strong, domestic drone ecosystem while lowering India’s dependency on imported drone parts, many of which are still made in China. Supported by China and Turkey, the action is also perceived as a strategic reaction to Pakistan’s rapidly developing drone capabilities.
The production of drones, essential parts, software, counter-drone systems, and associated services will be supported by the new incentive package. It is far more comprehensive than India’s previous ₹1.2 billion production-linked incentive (PLI) program, which was introduced in 2021 but had little effect because domestic drone start-ups had trouble getting funding.
The sources, who asked to remain anonymous, stated that the defense ministry will support the civil aviation ministry in leading the program. When Reuters contacted both ministries, they declined to comment.
The plan’s strategic urgency stems from a four-day drone war between India and Pakistan in May, which was the first time both nations had widely used unmanned aerial vehicles. “Drones, loitering munitions, and kamikaze drones were used extensively,” Defense Secretary Rajesh Kumar Singh stated last week. “The lesson is clear: in order to create a robust, independent drone manufacturing ecosystem, we must intensify our indigenization efforts.”
India, which prohibits the importation of drones but not their parts, will also provide more incentives to companies that source parts domestically. According to the sources, the government wants to source 40% of essential components domestically by FY2028.
The majority of India’s military-grade drones are currently imported from Israel, but the country’s 600+ company drone industry has begun to produce affordable substitutes. Still, a large portion of essential components, such as motors, sensors, and imaging systems, are imported.
The Small Industries Development Bank of India (SIDBI) will offer low-interest loans to drone manufacturers for working capital, research and development, and other operational requirements in order to further support the program.
According to Reuters, the initiative is a part of a larger plan that could see India spend up to $470 million on drones over the course of the next 12 to 24 months using a phased procurement and development approach.
If the incentive program is successful, it could establish India as a major player in the quickly developing drone technology market on a global scale.
CEO, Mavdrones
Pradipta V Mukherjee is the visionary CEO of Mavdrones, driving innovation and growth in the drone industry. With a passion for advanced technology, he leads the company's strategic direction, ensuring Mavdrones stays at the forefront of drone solutions. Under his leadership, Mavdrones has achieved remarkable success, including winning the 'Best Innovation and Technology in Drone Industry' award from ASSOCHAM. Pradipta is committed to revolutionizing the industry through advanced UAV technology, fostering a culture of excellence and forward-thinking within the organization.
