Indian Drone Industry
From the Internet to EVs we are seeing a golden era of technological advancement. In this era Drones aka Unmanned Aerial Vehicles (UAVs) are no exception.
From getting your food delivered, elevating worksite productivity, and maximizing crop yields to defense sector efficiency, the possibilities that drones offer are endless. The Government of India is planning to make India a Global Drone Hub by 2030, which will make the business of drones fly high in the Indian sky.
By FY2024, the Government of India expects the total turnover of the drone manufacturing industry to increase to Rs.900 crore from Rs.60-80 crore at present.
Recently PM Narendra Modi inaugurated ‘Drone Mahotsav’ to encourage the Drone Industry where he highlighted the importance of drone technology in the fields of defense, disaster management, agriculture, tourism, etc.
Civil Aviation Minister Jyotiraditya Scindia said that the Indian drone industry will have a total turnover of Rs.15000 crore by FY2026. On the back of the new drone policy, Mr.Smit Shah stated that India’s drone market is expected to reach Rs.50000 crore in the next 5 years and Rs.30000 crore in the next 3 years.
India is the 3rd largest importer of military-grade UAVs. At present, India imports specific components from China, the US, and Europe. India aims to manufacture indigenous drones and master the entire value chain.
Increase in demand and market growth, India has witnessed a 34.4% growth in the number of drone-based startups from August 2021 to February 2022 period which was mainly because of the PLI scheme which was launched in August 2021. The PLI scheme envisages an outlay of Rs.120 crores for 3 years to manufacture drones and imposed a ban on drone imports. This scheme was expected to 2x the combined sales turnover of all domestic drone manufacturers in India.
India can witness Chinese demand shifting here as at present there is a reluctance toward Chinese drones. There are data-related security concerns about them as they go back to China where the servers are housed. As a result, drones manufactured in India are posing a huge demand from all over the world. Till now, India has received 12,000 drones mainly for agricultural purposes from Malaysia, South America, Panama, and Africa. 75% of the export orders are for agricultural purposes and the rest are for mapping and inspection.
DisclaimerInvestment/Trading is subject to market risk, past performance doesn’t guarantee future performance. The risk of trading/investment loss in securities markets can be substantial. Also, the above report is compiled from data available on public platforms.
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