The uniform 5 percent GST on drones established at the 56th GST Council meeting is expected to enhance the nation's swiftly expanding drone ecosystem

Drone Environment

Industry estimates suggest that the worldwide drone market will exceed $30 billion by 2025 and is expected to grow to $90–100 billion by 2030, fueled by the swift integration of AI, automation, and 5G technology.

India is encouraging local drone and anti-drone technologies through support packages of USD 230 million, aiming to decrease import reliance and improve procurement effectiveness.

Top Nations and their advantages

China: China leads the worldwide market, with DJI holding approximately 70% of the commercial drone sector. Robust government backing has broadened uses in precision agriculture, urban aerial transport, and logistics.

United States: The U.S. Armed Forces are making significant investments in unmanned combat aerial vehicles (UCAVs) and loitering munitions.

E-commerce catalysts: Companies such as Amazon Prime Air are experimenting with extensive drone delivery systems for packages.

Turkey has become a worldwide leader in armed drones, with Baykar’s Bayraktar TB2 and TB3 exported to more than 30 nations.

The EU’s encouraging framework for Beyond Visual Line of Sight (BVLOS) operations is facilitating the use of drones in energy, inspection, and logistics.

Prospects in the Drone Sector

Enhance Global Competitiveness: By utilizing its extensive domestic market and start-up ecosystem, India can establish itself as an international center for cost-effective drone technologies, akin to its position in IT services.

Industrial Uses: Drones are utilized for mapping, mining inspections, pipeline monitoring, and smart city initiatives, reducing both time and expenses.

The Aerostatic Drone is designed for ongoing monitoring and emergency response.

Healthcare Services: Trial initiatives in regions such as Telangana and Meghalaya have showcased effective final-mile drone deliveries of medications and vaccines.

Logistics: Drone delivery systems can alleviate urban traffic and decrease last-mile delivery expenses by as much as 40%

Government Efforts in the Drone Industry

Drones Rules, 2021 establish the essential regulatory structure for the commercial utilization of drones.

These regulations address multiple elements such as certification types, drone registration and operation, airspace limitations, research, development and testing of drones, training and licensing, as well as violations and penalties, among others.

The Drone Airspace Map released in 2021 has designated almost 90% of Indian airspace as a green zone for drones operating up to 400 feet.

The Production-Linked Incentive (PLI) program offers an incentive of Rs 120 crores, distributed across three financial years. The PLI percentage is 20% of the value increase across three fiscal years.

2022 drone certification program, simplifying the process for drone manufacturers to acquire type certificates.

Policy on drone imports for 2022 prohibits the import of foreign drones while allowing the import of drone components.

The Drone (Amendment) Rules, 2022 removed the necessity for a drone pilot license.

Obstacles Facing the Drone Industry

Import Reliance: Even with policy backing, India remains significantly reliant on imported drone parts like motors, sensors, and batteries, while China leads the worldwide supply chain.

Regulatory and Compliance Concerns: Although the Drone Rules, 2021, eased licensing, the compliance procedures for type certification and safety approvals continue to be lengthy, posing challenges for start-ups.

Security Issues: Drone violations in border regions underscore the threat of exploitation by non-state entities. Unregulated civilian drones present dangers of smuggling, surveillance, and sabotage.

Cost Barriers: Farmers and small enterprises are unaware of the advantages of drones. Despite subsidies, the initial expense of agricultural drones stays elevated for small-scale farmers.