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Market Reports

Drone Industry in India

UJA Markt Report Drone Industry in India

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Quick Facts: Indian Drone Industry

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Overview: Indian Drone Industry

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Drone: Applications Overview

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Government Initiatives

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Megatrends in Drone Industry

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Why invest in Indian Drone Industry?

Quick Fact: Indian Drone Industry

  • The number of manufacturers of drones and unmanned systems is around 250.
  • In India, the drone ecosystem is regulated by the government through the Directorate General of Civil Aviation (DGCA) under the Ministry of Civil Aviation.
  • The regulatory authority to oversee and manage drone operations comes from the Aircraft Act, 1934 and the Aircraft Rules, 1937.
  • Industry estimates indicate that over 3,000 drones are currently used in Indian agriculture, with numbers expected to exceed 7,000 by FY25.
  • In April 2023, the Ministry of Agriculture introduced standard operating procedures for drone-based pesticide application on 10 crops, such as rice, wheat, cotton and maize.

Overview: Indian Drone Industry

The Indian drone industry has witnessed significant growth, transitioning from a niche sector to a mainstream industry. This transformation is driven by advancements in technology, supportive government policies and increasing demand across various sectors.

India’s drone industry is experiencing rapid growth and significant transformation. Valued at INR 57 Bn in 2024, the market is projected to more than double to INR 123 Bn by 2029. During this period, the number of drones in the country is expected to surge from approximately 10,800 units to over 61,000. Currently, India has about 13,000 registered drones and a thriving startup ecosystem, with more than 200 drone startups raising over INR 12 Bn since 2014.

This expansion is strongly supported by government initiatives aimed at fostering self-reliance and scaling the industry. To promote domestic manufacturing, imports of foreign drones have been restricted, while 90% of Indian airspace has been designated as “green zones,” allowing drones to operate freely up to 400 feet. This regulatory environment facilitates easier drone operations across diverse sectors such as agriculture, logistics and surveillance, driving wider adoption.

In Operation Sindoor (May 7–10, 2025), the Indian military showcased advanced drone warfare capabilities alongside missile strikes. Indigenous “kamikaze” drones like SkyStriker, Nagastra‑1, JM‑1 and ALS‑50, along with Israeli-made Harop and SkyStriker loitering munitions, carried out precision strikes on terrorist camps and Pakistani radar sites. Made‑in‑India surveillance drones Zuppa’s Hawk, Scout and Eagle penetrated enemy territory for early warning and intelligence collection. On the defensive side, indigenous systems such as DRDO’s D4 anti‑drone jamming units and the Akash/Akashteer network neutralised Pakistani drone swarms with near‑perfect effectiveness. This multi-layered use of drones, offensive loitering munitions, ISR platforms and counter‑drone systems marked a watershed moment in India’s autonomous, Atmanirbhar defence strategy, enhancing both lethality and deterrence.

Types of Global Applications Overview

Defense & Security

  • The Indian Army is using advanced drones with precise targeting to improve combat efficiency, enabling accurate threat neutralization in counter-insurgency operations while minimizing collateral damage.
  • In high-altitude and remote regions like Ladakh and Siachen, drones are transforming logistics by delivering essential supplies to troops in compact containers, ensuring timely support where traditional methods may fall short.
  • Besides combat, the Indian Army deploys drones for search-and-rescue missions during natural disasters. These rescue drones quickly and accurately assess affected areas, significantly improving the coordination of relief operations.

Agriculture

  • The Indian agricultural drone market is in its early stages but shows significant growth prospects. With uses like soil analysis, seed planting, crop spraying and livestock monitoring, drones are quickly becoming essential for modern farming.
  • Under the Agricultural Mechanization Sub-Mission, ICAR and related agricultural institutes receive full financial support, up to INR 1 Mn per drone, plus additional costs to acquire drones and demonstrate their use in farmers fields.
  • To simplify the use of Nano fertilizers like Nano Urea via foliar application, efforts include drone spraying and providing battery-operated sprayers at retail outlets. Additionally, pilot training and custom hiring of spraying services through Village Level Entrepreneurs are being actively encouraged.

Environmental Monitoring and Wildlife Conservation

  • Wildlife conservation is a national priority, with over 100 national parks and 500+ sanctuaries needing strong surveillance to protect animals.
  • In India, drones are used for anti-poaching patrols, tracking animal migration, monitoring forest fires and livestreaming remote wildlife areas for research.
  • In Assam’s Kaziranga National Park, drones have been deployed to patrol against poachers, helping reduce rhino poaching by 70% between 2021 and 2023 by providing forest officials with aerial views during early mornings and late evenings.

Media, Film and Events

  • In 2025, drones became a key tool in India’s media and entertainment sector, widely used to capture breathtaking aerial shots for films, television shows and live events, adding a new dimension to visual storytelling.
  • By enabling high-quality footage at lower costs, drones have revolutionized how content is created, making productions more dynamic and helping creators engage audiences with more immersive experiences.
  • Today, drone cinematography is a standard practice for corporate events, cinematic film shoots with dramatic aerial views, live sports broadcasting and promotional videos for tourism, setting new industry standards across India.

Land Surveying and Mapping

  • Drones provide high-resolution aerial imagery that speeds up land surveys and project planning while improving accuracy and reducing manual errors.
  • Government initiatives like SVAMITVA use drone mapping to create transparent property records and enable efficient resource allocation.
  • Drones are used for topographical surveys, 3D land record creation, pipeline and utility inspections and mining area monitoring to support infrastructure development and regulatory compliance.

 

Government Initiatives

PLI Scheme for Drones and Drone Components

  • The purpose of this scheme is to encourage domestic production of drones and their components in India, aiming to achieve self-reliance and global competitiveness. The scheme will be implemented over a period of three years.
  • The total budget allocated for the PLI scheme for drones and drone components is INR 1.2 Bn.
  • A PLI rate of 20% will be applied to the eligible value addition within India throughout the duration of the scheme.

Namo Drone Didi Scheme

  • The Namo Drone Didi scheme is a central government initiative focused on empowering women-led Self-Help Groups (SHGs) by providing them with drone technology to deliver agricultural services.
  • Between 2024-25 and 2025-26, the scheme plans to equip 15,000 selected women SHGs with drones, enabling them to offer rental services for tasks like spraying liquid fertilizers and pesticides to farmers. The scheme provides 80% of the drone cost as a subsidy up to 8 lakhs.
  • This program is expected to help each SHG earn an additional income of at least INR 1 lakh annually, promoting economic empowerment and sustainable livelihoods.

Ban on Drone Imports

  • India has completely banned drone imports to promote domestic manufacturing and nurture local talent.
  • The Civil Aviation Minister emphasized that the ban prevents foreign countries or companies from profiting at India’s expense.
  • The government aims to encourage young innovators to develop indigenous drone solutions tailored to the country’s specific needs.

Megatrends in Drone Industry

Increasing Adoption of Drone Delivery Services

  • In 2025, drone delivery systems are gaining momentum in India, especially for last-mile delivery of medical supplies, groceries and essential goods to remote and hard-to-reach areas.
  • The impact of drone deliveries has been significant in states like Telangana and Arunachal Pradesh, where drones rapidly transport vital medicines, vaccines and diagnostic samples to communities with poor road access. The World Economic Forum’s Medicine from the Sky project is a major initiative supporting this effort.
  • The first phase of this project in Telangana has completed over 300 successful drone vaccine delivery trials, making it Asia’s pioneering effort. It later expanded to Arunachal Pradesh, where over 650 drone flights delivered more than 8,000 medical products to over 200 patients, covering an equivalent of 15,000 km by road in difficult terrain.

Emphasis on Drone-based Data Analytics and Imaging

  • Drones equipped with advanced sensors and cameras are increasingly used for high-resolution mapping, surveying and data collection.
  • Industries such as mining, construction and environmental monitoring rely on drone data analytics for better decision-making.
  • This shift transforms drones from just flying devices to crucial tools for actionable insights.

Why Invest in the Indian Drone Industry?

Public-Private Partnerships

  • Public-private partnerships bring together government support and private company skills, making big projects easier and less risky, while helping build important infrastructure like drone corridors and testing centres.
  • The government provides funding and grants to startups, reducing their costs and encouraging new ideas and technology development.
  • Working with local or international partners and using government programs gives investors many ways to succeed in India’s fast-growing drone market.

Rapid Market Growth and Diverse Demand

  • India’s drone industry is expanding quickly, driven by increasing demand across sectors like agriculture, logistics, surveillance and disaster management.
  • Growing infrastructure, including drone corridors and testing facilities, supports the industry’s development.
  • A large domestic market with diverse applications creates multiple revenue streams and strong opportunities for businesses.

Thriving Innovation & Startup Ecosystem

  • Over 200 Drone Startups and Counting: Innovation in AI-based navigation, swarming, payload design and analytics is rapidly maturing.
  • Strong R&D Institutions: Collaboration with IITs, DRDO and ISRO is creating a pipeline of deep-tech drone solutions.
  • Investor and Corporate Interest: Growing venture capital (VC) funding, along with strategic investments from conglomerates like Adani, Infosys and Reliance.
  • Make-in-India Edge: Rising demand for indigenous drones is driving innovation in localization, design and Intellectual Property (IP) creation.

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