India’s Drone Mission Gets ₹2,000 Crore Boost
India has announced a ₹2,000 crore investment to boost domestic drone manufacturing, reduce dependence on Chinese imports, and strengthen national security. The initiative aims to localize 40% of critical drone components by FY 2027–28, supported by a proposed Production-Linked Incentive (PLI) scheme and strategic focus on defence, agriculture, and logistics applications.India launches ₹2,000 crore drone manufacturing mission to cut Chinese imports, enhance self-reliance, and strengthen national security. The initiative supports local production, a new PLI scheme, and a push to localize 40% of drone components by FY 2027–28.
The Indian government has announced a ₹2,000 crore investment to bolster its drone manufacturing sector, aiming to reduce reliance on imports, particularly from China. This initiative is part of a broader strategy to enhance domestic production and strengthen national security amid rising regional tensions.
India’s imports from China have grown significantly, reaching $101.8 billion in FY2024, with 98.5% consisting of industrial products, including critical drone components. The new funding aims to localise the production of at least 40% of these components by FY 2027–28. The move is driven by the need to counter Pakistan’s advancing drone capabilities, which have been supported by China and Turkey.
The proposed drone incentive scheme will support local manufacturers by providing financial incentives to develop and produce key parts domestically. This is expected to reduce costs, enhance supply chain security, and create jobs in the sector. The urgency of the initiative has increased due to recent India-Pakistan border tensions, highlighting the strategic importance of self-reliance in defence technologies.
In addition to manufacturing, the government is exploring a new Production-Linked Incentive (PLI) scheme to accelerate local drone production. This follows earlier efforts to ramp up domestic capabilities, with the civil aviation ministry indicating plans to introduce the scheme in response to growing demand. Drones are increasingly vital for applications ranging from agriculture and logistics to surveillance and defence.
India’s drone sector is still developing, with challenges including technological expertise and supply chain integration. The investment aims to address these by fostering innovation and building a robust ecosystem for drone production. By reducing dependence on foreign components, India seeks to enhance its economic and strategic autonomy.
The initiative aligns with broader national goals of self-reliance and technological advancement. As India competes in a rapidly evolving global drone market, this funding could position the country as a significant player, supporting both economic growth and national security.
This investment underscores India’s commitment to building a self-sufficient drone industry, reducing vulnerabilities, and fostering innovation in a critical technology sector.
Source: Outlook Business
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