Unmanned Aerial Vehicles (UAV) or drones are one of those such technologies, which usage and application has

expanded over the

years to aid a larger ambit of sectors and applications.

There are several types of drones available in the international market, which can be categorized based on their technology,
application, and range:

1. Single-rotor drones: These drones have one rotor and are similar to helicopters in design.
2. Multi-rotor drones: These drones have multiple rotors. Examples include tricopters, quadcopters, hexacopters, and
octocopters.
3. Fixed-wing drones: These drones have a rigid wing structure and can’t hover in one place like rotor drones.
4. Fixed-wing hybrid drones: These drones combine the benefits of rotor drones and fixed-wing drones.

In terms of range, drones can be categorized as:

• Very close-range drones: Travel up to three miles.

• Close-range drones: Travel within the range of around 30 miles.
• Short-range drones: Travel up to 90 miles.
• Mid-range drones: Travel 400-miles.
• Longest-range drones: Go beyond the 400-mile range and up to 3,000 feet in the air. These drones are also known as
endurance drones.

In India, drones are divided into five categories as per UAS Rule 2021:
1. Nano drones – These have a weight equal to less than 250 grams.
2. Microdrones – weigh between 250 grams to 2 kilograms.
3. Small drones – weighs between 2 kilograms to 25 kilograms.
4. Medium drones – are huge and can weigh between 25 kilograms to 150 kilograms.
5. Large drones – These weigh more than 150 kg.

Some of the companies that are manufacturing UAVs include Airbus S.A.S, DJI, 3DR, YUNEEC, Kespry, EHANG, Boeing, Delair,
AguaDrone, Autel Robotics USA, etc.

Given the parameters of the Atmanirbhar Bharat Abhiyan, drone manufacturing meets the requirements to a compelling degree.
There is a huge potential of the manufacturing of drone components in the country.

Item # Sub-Component of drones Commonalit ies/ Synergies with Ot her Indust ries
1. Motors/ propulsion systems Consumer electronics, white goods, electronics
2. Payloads Sensors and electronics, cameras and video equipment
3. Communication modules High-end electronics, robotics
4. Batteries/ power systems Automobiles, EV
5. Propellers Aerospace and aviation
6. Assemblies and navigation systems High end electronics, software systems, mobile phones
7. Airframes Aerospace and aviation

The latent availability of components within multiple elements of Indian Industry makes it feasible for the concerned industry
expertise to be re-oriented towards manufacturing of drones.

Market potential
As per analyst estimates, India has the unique opportunity to realize approximately INR 1.8 Lakh crore of aggregate domestic
manufacturing potential through focused implementation of drone indigenization projects, across defense, commercial, homeland
security and counter UAV sectors. Analysts expect a CAGR of 80% in 2020 to 25, followed by a CAGR of 35% in 2025 to 30.
The commercial sector largely comprises the infrastructure, retail and agriculture. Taken together with homeland security, it is
estimated that a manufacturing potential of INR 98,000 crore in 2030 across fixed wing and multi-rotor drones. The
manufacturing demand for the sub-components of these drones would find extant commonalities and synergies with multiple
industries as depicted below.
Use cases
Drones are increasingly finding potential to be employed in multiple use cases across infrastructure, retail, agriculture,
homeland security, and many other sectors. A snapshot of the burgeoning use cases for drones is given below.

S No. Sector Drone applications

1. Agriculture and farmers welfare a. Soil health scans, field water needs estimation
b. Irr igation schedule planning
c. Irr igation, fertilizer, pesticide spray eff icacy mapping
d. Plant size, crop health monitoring
e. Farm output estimates
f. . Vegetation indices, plot statistics
g. River erosion / restoration tracking
h. Insurance claim surveys
2. Health and family welfare i.
a. Agri dataofexchange
Delivery medicinesforand
drones
other medical equipment
b. Pathology tests— sample collection from remote or epidemic/
pandemic affected areas
3. Panchayati Raj a. Land records / property rights (SWAMITVA)
4. Def ense a. Combat
b. Surveillance
c. Communication in remote areas
d. Swarm attack
e. Counter drone
5. Home Affairs a. Key technology for disaster response and management
i. Impact assessment during disasters
ii. Transport medicines, food and essentials in disaster affected areas
iii. Search and Rescue
b. Patrolling in remote areas
c. Surveillance at international borders / Counter insurgency
d. Announcement in under naxal activities / riots/ distress
e. Traffic monitoring and
6. Housing and urban affairs management
a. f . Crowd
Construction monitoring
Monitoring
b. Planning/ Digital Elevation model
c. Incident reporting

7. Railways a. Surveillance and Incidence Response

b. Visual Inspections and Maintenance
c. Construction Monitoring
8. Road transport and highways a. Visual Inspections
b. Incident Response
c. Construction monitoring
9. Ports, shipping and waterways a. Visual Inspections
b. Maintenance and Incident Response

10 . Mining a. Monitoring and inspection

b. Automatic surveying and mapping
c. Stockpile management
d. Haulage road Optimization

11 . Power a. Monitoring of power lines and other assets

b. Surveillance and incidence response
 S No. Sector Drone applications
c. Visual inspections and maintenance
12 . Petroleum and natural gas a. Monitoring of pipelines and other
b. assets Surveillance and incidence
c. response Construction monitoring
13 . Environment, forests and a. Monitoring of hazardous activities
climate change b. Assessment of pollution levels and tracking the source
c. Monitoring and safety of wildlife / poaching activities
14 . Information and broadcasting a. Robust aerial platform for photography /
b. videography Economical substitute of helicopter
c. Capabilities to work in difficult conditions without life at risk
d. Low altitude shooting without disturbing (air flow/ noise) ground crew

End users
The end users across the industry would be many agencies, starting from the national defense forces, state police departments
and disaster relief organizations, farmers and insurer, last mile retail delivery entities, and infrastructure companies, viz power,
railways, ports, real estate, etc.
Key Technology
The value chain

Drones, or Unmanned Aerial Vehicles (UAVs) or Unmanned Aircraft Systems (UASes), are composed of several key
components:
 1. Frame: The main structure that holds all the components together. It’s commonly made of lightweight,
composite materials like ABS, polycarbonate, and polypropylene to minimize weight and improve
maneuverability during flight2. Carbon fiber, aluminum, titanium, and magnesium alloys are also used for
added durability2.
2. Motors: These electrical components power the propellers and enable the drone to fly. They’re typically
made from metal, such as aluminum or steel, for durability and heat dissipation2.
3. Propellers: Also known as rotors or blades, these rotating components generate lift and enable the drone
to fly2.
4. Electronic Speed Controllers (ESCs): These components control the speed of the motors2.
5. Flight Controller: This is the ‘brain’ of the drone. It interprets input from the receiver, GPS module, and
onboard sensors, and adjusts the drone’s motor speeds accordingly2.
6. Battery: This is the power source for the drone12.
7. Radio Transmitter and Receiver: These components allow the drone to communicate with the controller2.
8. GPS Module: This component allows the drone to know its position and altitude2.
9. Camera and Gimbal: These are used for capturing photos and videos2.

Each of these components plays a crucial role in the operation of a drone. The materials used for their construction
are chosen for their specific properties, such as light weight, strength, and durability2
In addition to the main components I mentioned earlier, there are several other parts that are often included in
drones123:
1. Motor Mount: The motor is fixed on the motor mount. It can sometimes be built with combination fittings
of landing struts, but it can be a part of the drone’s frame2. The motor mount should be checked after
every rough landing because a minute crack in a motor mount can disrupt your drone’s performance2.
2. Landing Gear: The landing gear provides safety to the drone body while landings2. Some high-profile
professional drones like Yuneec Typhoon, DJI Phantom 4 Pro, must have it2. However, its application also
depends on the surface on which the drone is going to land2.
3. Sensors: Drones often include various sensors to help with navigation, stabilization, and more3.
4. Antenna Module: This component is used for communication between the drone and the controller4.
5. Add-ons: These are additional components that may or may not be included with the drone depending on
price and functionality. These add-ons include devices such as additional cameras, video-recorders, and
landing skids.
Remember, the specific components and their quality can vary greatly depending on the type and purpose of the
drone

Counter-drone systems

Counter drone systems are often a combination of multiple technologies tailored to suit the application. The salient
features of counter drone systems are:

► The most popular drone detection techniques are radar, RF detection, EO, and IR, or a combination thereof.

► Identification is heavily dependent on the regulatory infrastructure available / to be developed in a geography.

► The most popular interdiction technique is jamming.

Counter-drone technology.
Counter drone functions through a process of detection,
identification and interdiction. Detection methods involve
the exploitation of radar, radio
frequency, electro-optical, acoustic, or infra-red spectrums,
whose effectiveness against objects varies as per ambient
conditions. Identification mechanisms are not standardized.
Interdiction is carried out largely through jamming, while
spoofing, ‘net-over-drone’, and laser techniques exist as well.

Manufacturing and value-added service components

Physical Counter Opeartion Data

Navigation Support
Components OEMs Infrastructu Drone and Manageme
and UTM Services
re Equipment Solutions nt

•Batteries •Drone OEM •Launching •Detection •UTM •Service •Image •Pilot

•Payloads Manufactur Pads •Tracking Platforms Market Processing market
•Sensors ers •Chargers •Interdiction •Route Places application places
•Propulsion •Ground •Vetri-Ports •UAS Guns Planning •Use Case as •Data •Insurance
Control Application a Service Processing •Repair
•Shields
System s •Platform as Platforms Services
•Lasers
•Telementry •GPS a Service •AI and •Consulting
and Comms Devices Emerging •Training
Technology Service
use cases
•Testing
Infra

~55% of PE investment worldwide are in this ~45% of PE investment worldwide are in this
manufacturing side of spectrum. value added service side of spectrum.
The drone value chain spans across manufacturing and

India is focusing on both the manufacturing side, and the value-added services spectrum side, of the value chain, for
several compelling reasons: -

► To enhance the manufacturing ecosystem and provide greater control over specifications to meet regulation
requirements.
► High synergies exist with high value manufacturing industries like electronics and batteries. Moreover, there is a
significant scope of value addition as drone applications have a high component of data and technology services
► The drone ecosystem would be highly complementary to India’s strengths in software, technology and IT
capabilities, resulting in a huge potential for future service exports.
► India’s full-spectrum capability would mitigate security risks and ensure data control for Indian applications and
government use cases
► Indigenizing key elements of component and manufacturing value chain are important to make India a global
drone hub.
Global investments
Investments in startups indicate significant global interest on both, the manufacturing, and the value addition
services side of the spectrum. Analysts estimate that up to 55% of the PE investments worldwide occur in the
manufacturing side, and approximately 45% towards the Value-Added Services side.

Manufacturing value chain: commercial drones:

Motors, camera payloads, communication modules and batteries comprise up to 75% of the manufacturing value
chain of commercial drones. Almost the entire Bill of Materials (BOM) of commercial drones consists of imported
components today, with China being a major supplier of the drone BOM. The key impediment to local
manufacturing is generic as well as UAV specific local demand. However, most of the components are common with
other electronics and robotics industries in the country. These key components would therefore require a strong
domestic demand to be self-sustaining.
Value added service components: commercial drones
While manufacturing plays a critical part, significant value addition potential exists in service components in the case
of commercial drones. High Input costs in typical drone applications are attributable to non-manufacturing portions
of the value chain; in the case of agriculture, analysts estimate nearly 65% of the net value would accrue from data
management, support services, operations, and solutions. However, India has significant ‘white-spaces’ in such
value-added services. Limited domestic demand due to Indian regulations prevents Indian service providers from
attaining economies of scale. Essential support services like training, drone insurance, testing have low availability
which impacts quality of services.
It is, therefore, pertinent to enable regulations to realize domestic demand to sustain the ecosystem. It would also
be critical to ensure control over the data trail from Indian use cases and applications.

Manufacturing value chain: defense drones

While sufficient manufacturing and integration capabilities exist in respect of defense drones, unavailability of
technology remains a major impediment

Global Flagbearers:
1. Switzerland: making for the world:
 2. The US: a holistic approach for drone integration in the national airspace

The Federal Aviation Administration’s (FAA's) vision for fully

integrating drones into the National Airspace (NAS) entails drones
operating harmoniously, side-by-side with manned aircraft,
occupying the same airspace and using many of the same air traffic
management.
systems and procedures. FAA understands that collaboration across
industry, government, and academia will propel the successful
integration efforts. This holistic approach manifests itself in several
initiatives8: -

► Focus Are Pathfinder Program- an industry partnership program

to develop and validate operational concepts for certification,
operations, and safety beyond established or proposed policies
and procedures
► Drone Advisory Committee- provides the FAA with advice on key UAS
integration issues by helping to identify challenges and prioritize
improvements.

► UAS Data Exchange- A collaborative approach between

government and private industry facilitating the sharing of
airspace data between the two parties.
► UAS Integration Pilot Program- brought state, local, and tribal governments together with private sector
entities, such as UAS operators or manufacturers, to test and evaluate the integration of civil and public drone
operations into the national airspace system

US drone test sites: enabling drone testing infrastructure by leveraging the ecosystem

3. Turkey
Projecting drone power at the global stage

Perhaps the most dramatic ascension to the world drone power stage has been that of Turkey, which, in a few
short years, has begun to rival the European drone industry in the array, versatility and lethality of its drones.
Turkey’s rise as a drone power reflects the critical role of coordinated state-guided industrial policy, in
conjunction with local technical talent. Turkey’s interest in armed drones emerged in 2008, when they sought
permission to purchase the MQ-1 Predator from the US, and instead the US offered it the non-armed version of
the reapers. After refusing the US offer, Turkey purchased unarmed Heron TPs from Israel in 2010, and has since
taken an ambitious approach to domestic production of armed UAVs. The last four years have seen an
exponential growth in Turkey’s drone industry, resulting in the deployment of several flagship military drones.
In the geopolitical context, Turkey’s relatively low-cost drones have spurred exports, and have seen deployment
in numerous battlefields, including Libya, Syria and now, in Ukraine. The EU acknowledges the Turkish drones as a
potent force, 12 destined to disrupt existing power structures and even the methods of warfighting.
Atmanirbhar Bharat and the significance of drone manufacturing in India
Application based barriers to entry for service providers:
Drones are on the rise due to their ease of operation and cost-effectiveness. Areas of application demanding low
technical skills is creating intense competition for drone service providers. On the contrary, areas demanding high
sectoral expertise and technical know how are creating entry barriers for drone service providers. For instance,
agricultural spraying and industrial maintenance and monitoring are low competitive applications that require high
technical knowledge, whereas entertainment and media and law enforcement surveillance are high-competitive
applications that need little technical understanding:

An evolving concept: Drones-as-a-Service (DaaS)

The advent of drones-as-a-service is helping enterprises manage expenses. The price of an enterprise-level drone
can be incredibly expensive, which is why most companies are opting for drones as a service. The drone services
market is divided into three categories

- Drone maintenance, repair and overhaul (MRO),

- Drone platform services and

- Drone training and education services.

The drone service market in India was valued at USD130.4 million in 2020 and is expected to reach USD4,918.9
million by 2030, at a CAGR of 44.4 % . Drone service market segment, drone MRO services and drone training and
education services are predicted to grow at a CAGR of 46.8 per cent and 45.2 per cent, respectively, from 2020 to
2030. By 2030, the combined share of these two segments is expected to be 25 %.
 To seize the opportunity within the growing drone service market, several companies and startups have started
offering services across industries.

- Bengaluru-based DaaS service provider offers 'pay per use' drone services for agriculture, survey/ mapping,
surveillance, inspection of manufacturing units, oil and natural gas industry, solar panels, windmills, and real-
estate construction projects, which helps users reduce their initial investment, making it easier for them to
adopt and benefit from this new technology.
- Also, a Chennai-based DaaS startup is working to empower Indian farmers and the agriculture industry by
deploying 6 lakh drones across 6 lakh villages in India by 2025
- Another instance, a Bengaluru-based startup is offering business information to assist businesses in scaling.
Further, the firm plans to expand its drone data analytics-based offerings.

Cost analysis: traditional techniques versus drones:

Areas Existing process Potential drones benefits Saving details (approximate

values)

Planning Ground-based manual data Automated analysis and collaborative Existing cost: INR10-12 thousand
surveys and collection decision-making per sq. km
mapping Manual analysis and single- 10x faster and 10000x more data points Potential cost: INR6 thousand per
point decision-making. on a digitised base for better plans. sq. km
Cost Savings: 45 per cent.
Construction Excel-based progress tracking Automated object recognition, counting Existing cost: INR2.5 thousand per
monitoring without visual verification. and progress tracking on drone maps km for road construction survey
80 per cent faster and improved Potential cost: INR1.5 thousand per
transparency and on-site governance. km
Cost Savings: 40 per cent.
Earthworks Manual data collection and 30x faster data collection and 350x more Time consumption: 15-30 days for
management reporting data points than with traditional (Global surveying 100-acre job site
navigation satellite system) GNSS survey Time Benefits: 20 mins to survey
100- acre job site
 Paper-based volumetric 4x faster turnaround and end to end Cost Savings: 90 per cent.
tracking without visual tracking.
verification.
Agriculture Manual applications – unsafe, 10x faster turnaround, efficient and Existing cost: INR1500-1800 per
crop in-efficient and limited access costsaving acre for spraying
monitoring and to skilled labor Erroneous, Automated analysis and collaborative Potential cost: INR300-400 per
spraying single point-decision making decision making. acre
Cost Savings: 0 per cent.
Industrial asset Erroneous, unsafe, and Automated diagnostics from safe and Existing cost: INR90- 100 thousand
maintenance infrequent manual inspections frequent aerial inspections per chimney inspection using crane
and Ad-hoc manual patrolling with Real-time, centralised view of inaccessible Potential cost: INR50 thousand
sustainability no visual evidence. and remote assets. Cost Savings: 50 per cent

The global contrast:

Countries all over the world are relaxing regulations on beyond visible line of sight (BVLOS) operations, which define
the ease of operating an unmanned aircraft without a remote pilot while maintaining a visual line of sight on the
UAVs. This is likely to further boost the demand for delivery drones. Globally, countries such as the U.S. and China
have created a favourable environment for companies to benefit from the applications of drones and their
associated technologies and as a result, these markets have seen significant capital invested in their drone
ecosystems and are driving innovation within the market.

China
China has a maximum 400-foot above-ground level limit, with UAS operators required to buy insurance for
UAS covering liability for third parties on the ground. The airspeed of the UAS is limited to 100 kilometers per
hour. Also, the UAS operators are required to record the flight data in a real-time online systems15. Leading
UAS manufacturing companies based in China currently make up the majority of the global UAS market. And
this is due to the rapid innovation, development of Unmanned Traffic Management and continuous
government investment.

U.S.
The U.S. has also witnessed exponential growth in drone usage post 2015 due to liberalized government
policies resulting in significant investments. The U.S. policies, which allow higher altitude flights at speeds no
faster than 100 miles per hour, heavier payloads with few restrictions, and a streamlined online process15,
have resulted in positive performance in the American market. The U.S. has recorded more than 900 startups
and big corporates within the drone industry. However, due to restrictions imposed on the U.S. armed
drones, China has swooped in to take the lead in the military drone market, which the U.S. is trying to
recapture16 . All the above-mentioned factors are reflected in the amount of money invested in the industry.
This capital is further reflected in the innovations driven by companies from these two countries.

India
The Drone Rules, 2021, have revamped the Indian drone ecosystem. Prior to this, old regulations and policies
restricted the growth of the Indian drone industry. However, liberalized drone rules, the PLI Scheme, the
Digital Sky platform and Drone Shakti have made doing business within the industry easier, leading to
increased confidence and growth and, ultimately, catching up with other developed nations.
Government of India initiatives to enhance India's drone ecosystem:
Manufacturers and importers require formal authorization certificates from the Director-General of Civil Aviation
(DGCA). The process includes obtaining a Unique Authorization Number (UAN) for the manufacturer, Equipment
Type Approval for the wireless system used in the drone, and a Unique Prototype Identification Number. Other laws
include the Aircraft Act, 1934, Indian Wireless Telegraphy Act, 1933, Indian Telegraph Act, 1885, and Sea Customs
Act, 1878 (as adopted by the Customs Act, 1962).

Legal requirements to manufacture drones (Unmanned Aircrafts) in India

Manufacturing drones [also referred to as Unmanned Aircraft System (UAS) or Remotely Piloted Aircraft System
(RPAS)] in India is regulated by multiple laws including: Aircraft Act, 1934, Indian Wireless Telegraphy Act, 1933,
Indian Telegraph Act, 1885 and Sea Customs Act, 1878 (as adopted by the Customs Act, 1962).

In this article, we have described the procedure that has to be followed for lawfully manufacturing drones in India.

Step 1- Obtaining Unique Authorization Number (UAN) for Manufacturer

Persons seeking to manufacture a drone have to first obtain a Unique Authorization Number (UAN) from the DGCA
under the Unmanned Aircraft System Rules, 2021 (UAS Rules). It is important to note that only Indian citizens,
enterprises (firms, partnerships etc.) and companies may seek authorization to manufacture drones.

Prior to making an application for authorization, the manufacturer has to first obtain security clearance from the
Ministry of Civil Aviation (MCA) in consultation with Ministry of Home Affairs (MHA). The security clearance
application may be made on the government portal [Link]

Upon receiving the security clearance, the manufacturer will have to submit an application to the DGCA in Form UA
– 1 of UAS Rules along with the specified fee. The fee varies for each category of drone.

After the process of authorization is complete, the DGCA will provide a UAN for an authorized manufacturer. This
UAN will be valid for a period of 10 years unless suspended, revoked or cancelled.

Any change thereafter to the credentials relevant to the eligibility criteria for obtaining the UAN has to be informed
to the DGCA, and a fresh authorization will be issued thereafter if the eligibility conditions continue to be fulfilled.

Step 2 – Obtaining Equipment Type Approval for wireless system used in the Drone

An Equipment Type Approval (ETA) from the Wireless Planning & Coordination (WPC) Wing has to be obtained for
every model and make of drone that is sought to be manufactured in India.

ETA can be obtained by making an application in the specified format to a Regional Licensing Officer (RLO) of the
WPC Wing. The RLOs are located in Delhi, Mumbai, Kolkata, Chennai and Guwahati. An application form along with
the technical literature, radio frequency reports from accredited labs and the requisite fees have to be submitted
while applying for ETA.

An ETA issued for particular make and model of a prototype drone can be used by future users of the same make
and model.

Step 3 – Obtaining Unique Prototype Identification Number

Any drone which has not been granted a Certificate Manufacture and Airworthiness (CMA) by DGCA cannot be used
for sale and marketing purposes. In order to obtain a CMA, first a prototype of the drone has to be manufactured in
India for testing at an approved laboratory.

In order to manufacture a prototype drone in India, the authorized manufacturer has to make an application for
obtaining a Unique Prototype Identification Number, which is unique to the particular prototype drone and
references the serial number. The application to obtain the Unique Prototype Identification Number has to be made
as per Form UA – 2 of UAS Rules along with the specified fee.

The Unique Prototype Identification Number received from DCGA has to be affixed on the Prototype drone in an
identifiable and visible manner.

Step 4 – Manufacturing a Prototype UAS

An authorized manufacturer can manufacture a prototype drone after obtaining the Unique Prototype Identification
Number. The prototype drone is essential for the receiving the CMA.

Step 5 – Obtaining Certificate of Manufacture and Airworthiness (CMA)

Once the prototype drone has been manufactured in India, the authorized manufacturer is required to prove that
the prototype drone is ‘airworthy’ i.e. it is capable of airborne operations as per the requirements stipulated by
Indian law. A drone is considered to be airworthy only when it receives a Certificate of Manufacture and
Airworthiness (CMA) from DGCA.

An authorized manufacturer can obtain a CMA by making an application under Form UA – 3 of UAS Rules to the
DGCA with the specified fee. Please note that unmanned aircraft flight manual and maintenance manual should also
be prepared and submitted along with Form UA – 3. On receipt of duly filled application, the DGCA allots an
approved laboratory for testing of drones. Upon allotment, the authorized manufacturer has to submit the
prototype drone which was manufactured in India along with design documents to the testing laboratory. The
testing laboratory will test the prototype drone for its design, build and airworthiness. Once the testing laboratory
validates the prototype drone and issues a test report, the DGCA will issue a CMA for specific type and class of a
drone after being satisfied with the test report.

A drone can be lawfully manufactured in India after ensuring that the requirements stipulated in the steps
mentioned above are complied with.
With the aim of making India a global drone hub by 2030, a total of 12 central ministries are involved in trying to
boost the indigenous demand for drone services. This is likely to create demand for around 1 lakh drone pilots in the
upcoming years. The central government has implemented the following reform initiatives to promote India's
emerging drone industry:

Drone import policy

The government announced in February 2022 that it had restricted the import of foreign drones
while allowing the import of drone components.17

Production-linked incentive scheme

Under this initiative, the government will provide a total incentive span over three fiscal years, of
INR1.2 billion (USD162 million*) to drone manufactures/industry.17

Drone (amendment) rules

In February 2022, the Indian government abolished the requirement for a drone pilot’s licence.17

Drone shakti
The union government announced the Drone Shakti scheme in its 2022 budget statement, with
the goal of facilitating and promoting drones as a service through companies.19

Agricultural drones monetary grant program

To promote the use of kisan drones, the GOI is providing financial incentives. For instance, Farmers
Producers Organisations can receive a up to 75 per cent subsidy of the cost of an agricultural
drone.2

Demand creation:
The government would play a critical role in creation of a viable market for drones, so that the country can realize its
own manufacturing potential. The government’s fillip through its role as market maker has a potential to expand
demand to approximately INR 75,000 Cr in the Commercial sector, and INR 23,000 Cr in the Homeland Security
sector. As much as 60% of the commercial manufacturing potential will arise from Government dominated sectors.
Demand push through ministries:

► Ministry of Defence. It is recommended that between 5 to 10% of defense

capital budget be allocated for procurement of new drones as well as upgradation
of the existing fleet (excluding MRO).
► Ministry of Home Affairs. MHA could allocate budget for drones in central schemes
like the “Nirbhaya scheme”. Specific allocation for drone procurement under the Police
Modernization budget will act as a force multiplier to the law enforcement agencies.
► Ministry of Urban Development. The Ministry should recommend drone enabled
solutions within the illustrative smart city solutions under the AMRUT mission.

State governments/ Union Territories:

The government could encourage drone adoption in states / Union Territories through policy interventions. For
instance, the recently promulgated Drone Policy of the Gujarat Government13 aims to create 25,000 jobs in the
drone sector and envisions enhanced drone usage through targeted interventions by various departments, in a wide
array of fields including monitoring vehicle emissions, counting lions in Gujarat forests, spraying pesticides, sowing
seeds and supplying medical items.

PLI Scheme
The Indian government has approved the Production-Linked Incentive (PLI) scheme for drones and drone
components. The scheme aims to catalyse growth in the upcoming drone sector1. Here are some key features of the
scheme:

1. The total amount allocated for the PLI scheme for drones and drone components is INR 120 crore spread
over three financial years1.
2. The incentive for a manufacturer of drones and drone components shall be as high as 20% of the value
addition made by her1.
3. The value addition shall be calculated as the annual sales revenue from drones and drone components (net
of GST) minus the purchase cost (net of GST) of drone and drone components1.
4. The proposed tenure of the PLI scheme is three years starting in FY 2021-221.
5. The Government has agreed to fix the minimum value addition norm at 40% of net sales for drones and
drone components1.

The Ministry of Civil Aviation (MoCA) has released the first provisional list of 14 beneficiaries under the PLI Scheme
for drone and drone components2. These include five drone manufacturers and nine drone component
manufacturers2. The final list of PLI beneficiaries is expected to be released by 30th June 20222.
The PLI scheme and new drone rules are intended to catalyse super-normal growth in the upcoming drone
sector1. Thanks to the new rules and the incentive scheme, the drones and drone components manufacturing
industry may see an investment of over INR 5,000 crore over the next three years1. The drone manufacturing
industry is expected to generate over 10,000 direct jobs over the next three years1. The drone services industry
(operations, logistics, data processing, traffic management etc.) is far bigger in scale. It is expected to grow to
over INR 30,000 crore in next three years1. The drone services industry is expected to generate over five lakh jobs in
three years1.

The PLI scheme covers a wide variety of drone components:

a. Airframe, propulsion systems(engine and electric), power systems, batteries and associated
components, launch and recovery systems;
b. Inertial Measurement Unit, Inertial Navigation System, flight control module, ground control
station and associated components;
c. Communications systems (radio frequency, transponders, satellite-based etc.)
d. Cameras, sensors, spraying systems and related payload etc.;
e. 'Detect and Avoid’ system, emergency recovery system, trackers etc. and other components
critical for safety and security.

Illustration: PLI calculation for a manufacturer (for sample year FY 2021-22)

Claim year Sales - Net of Purchase - Value PLI PLI due (INR cr)
GST (INR cr) Net of GST addition (INR
(INR cr) cr) rate (%)
FY 2021-22 100 60 100–60 = 40 20% 40 x 20% = 8
 Estimated payout schedule of PLI for drones and drone components

Claim year Sales - Net of Purchase - Eligible value PLI rate Applicable Disburse-
GST (INR cr) Net of addition (INR cr) for value PLI (INR cr) ment year
GST (INR cr) addition
(%)

FY 21-22 200 120 80 20% 16 FY 22-23

FY 22-23 400 240 160 20% 32 FY 23-24

FY 23-24 900 540 360 20% 72 FY 24-25

TOTAL 1500 900 600 20% 120

The Ministry of Civil Aviation has released the second provisional list of 23 beneficiaries under the Production-Linked
Incentive (PLI) Scheme for drones and drone components. The list includes 12 drone manufacturers and 11 drone
component manufacturers.

The drone manufacturers shortlisted are:

1. Aarav Unmanned Systems, Bengaluru, Karnataka

2. Asteria Aerospace, Bengaluru, Karnataka
3. Dhaksha Unmanned Systems, Chennai, Tamil Nadu
4. EndureAir Systems, Noida, Uttar Pradesh
5. Garuda Aerospace, Chennai, Tamil Nadu
6. Ideaforge Technology, Mumbai, Maharashtra
7. IoTechWorld Avigation, Gurugram, Haryana
8. Omnipresent Robot Technologies, Gurugram, Haryana
9. Raphe Mphibr, Noida, Uttar Pradesh
10. Roter Precision Instruments, Roorkee, Uttarakhand
11. Sagar Defence Engineering, Pune, Maharashtra
12. Throttle Aerospace Systems, Bengaluru, Karnataka

The drone component manufacturers shortlisted are:

1. Absolute Composites, Bengaluru, Karnataka

2. Adani-Elbit Advanced Systems India, Hyderabad, Telangana
3. Adroitec Information Systems, New Delhi
4. Alpha Design Technologies, Bengaluru, Karnataka
5. Dynamake Engineering, Hyderabad, Telangana
6. Imaginarium Rapid, Mumbai, Maharashtra
7. SASMOS HET Technologies, Bengaluru, Karnataka
8. Servocontrols Aerospace India, Belagavi, Karnataka
9. Valdel Advanced Technologies, Bengaluru, Karnataka
10. ZMotion Autonomous Systems, Bengaluru, Karnataka
11. Zuppa Geo Navigation Technologies, Chennai, Tamil Nadu

The combined annual sales turnover of these companies has increased from INR 88 crore in FY 2020-21 to INR 319
crore (unaudited) in FY 2021-22.
Here are some of the major drone manufacturers in India:

1. Aero360: Aero360 is one of the leading drone manufacturing companies in India. They specialize in
providing drone solutions for agriculture, surveying, mapping, and infrastructure development.
2. Skylark Drones: Skylark Drones provides drone solutions for industries such as mining, construction,
agriculture, and defense.
3. ideaForge: ideaForge is a leading drone manufacturer in India that specializes in developing drones for
defense, law enforcement, and other security-related industries.
4. Quidich Innovation Labs: Quidich Innovation Labs specializes in providing drone solutions for the film and
television industry.
5. DJI: DJI is a global leader in drone manufacturing and has a significant presence in India. They provide
drone solutions for various industries such as agriculture, construction, and surveying.
6. Paras Aerospace: Paras Aerospace is another prominent player in the Indian drone industry.
7. Throttle Aerospace: Throttle Aerospace is known for its contributions to the drone industry.
8. General Aeronautics: General Aeronautics is a well-known drone manufacturer in India.
9. Redwing Labs: Redwing Labs is another significant player in the Indian drone industry.
10. Dhaksha Unmanned Systems: Dhaksha Unmanned Systems is known for its innovative drone solutions.
Sources of inputs :

Total Length of Highways - [Link]

Length of roads to be constructed - [Link]
after-lockdown-target-is-to-complete-12000-km-of-roads-in-2020

[Link]
[Link]
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Length of Railway Track - [Link]

new-raillines-under-construction-government/articleshow/[Link]?from=mdr Length of Track to
be constructed -
[Link] %20Book%2
[Link]

Number of Towers - [Link]

telecom-towers-to-cater-to-rising-data-demand-118052400278_1.html Number of construction sites -
[Link]
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CEA ([Link]
trends2/#:~:text=The%20transmission%20line%20length%20(at,cent%20by%20the%20central%20
sector.) [Link]
[Link]

Gross Cropped Area (GCA) is the total area sown once as well as more than once in a particular year.
When the crop is sown on a piece of land for twice, the area is counted twice in GCA. Source:
[Link] (cropping pattern for 2010-11) Cereals - Source: Agri expert (1 spray each
at sowing and growth stages; 2 sprays for pest and disease detection Pulses - Source: Agri expert Cotton
- Source: Agri expert (longer duration; more chances of pest) Oilseeds - Source: Agri expert (longer
duration; more chances of pest) Vegetables - Source: Agri file on vegetable spraying Sugarcane - Source:
Agri expert Fruits and Other Crops - Source: Agri expert 12- No of KVKs in India -
[Link]

► KPMG / CII Institute of Logistics report of 2018 ► Spire Research – 2018 ► Knightfrank - india-
warehousing-report-india-warehousing-market-report-2019- [Link] ► Care Ratings:
[Link]
October%[Link]

[Link]

FICCI and EY analysis

[Link]
[Link]
[Link]
[Link] ► [Link] Disaster
management agencies ► [Link]

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