India is one of the largest importers of military grade Unmanned Aerial Vehicles (UAV). The advancements in robotics, artificial intelligence, miniaturization, automation, thermal imaging, and materials science augment various commercial and civilian applications of drones. These use cases span across sectors like power, agriculture, infrastructure, telecom, and mining. It’s no wonder there is a flood of emerging startups in the segment.

However, besides the PLI scheme, the Government of India has executed a series of reforms to make India a

globally renowned drone hub by 2030. One of the earliest reforms was the Drone Airspace Map 2021, which opened approximately 90 percent of the Indian airspace as a green zone(up to 400 feet). The government implemented the Drone Certification Scheme 2022 to help drone makers secure a type certificate and the Drone Import Policy 2022, banning the import of foreign-made drones. The year also witnessed the introduction of Drone (Amendment) Rules 2022, which discarded the need to obtain a drone pilot license for drone companies.

The new regulations, the government’s Make in India push, and the PLI scheme have played a significant role in encouraging Indian drone manufacturers to enhance their capabilities and increase their production. The positive initiatives like Drone Shakti & Kisan Drones initiatives to increase drone adoption across industries have also created a conducive environment for drone manufacturers and service providers in India. According to Tracxn, Indian drone startups received over $39 million of equity funding in 2022. It’s quite clear that India has been successful in creating a highly favorable environment for startups to thrive in the aerospace segment.