How India Can Build A Self-Reliant Drone Manufacturing Ecosystem

From leisure and hobby to strategic applications in agriculture and defence, the use of drones has expanded manifold in India in the past few years. However, with manufacturing still heavily reliant on imported components, there is a huge dissonance between the potential and realities of the country’s drone sector.

While the government has undertaken steps such as an import ban and launch of to encourage local manufacturing to foster self-reliance, the ecosystem faces glaring gaps such as fragmented supply chains, import dependency on critical components, underfunded R&D, lengthy processes and lingering quality perceptions.

This is because policy announcements to promote the drone manufacturing sector is just one face of the coin. Closing the aforementioned gaps demands a systemic reimagining of how India designs, manufactures, and scales technology.

Fixing India’s Fragmented Drone Supply Chain

India’s drone manufacturing journey begins with fixing its fractured supply chains. The original PLI scheme, though visionary, fell short of addressing grassroots bottlenecks – sourcing basic components like motor controllers and carbon-fibre composites often takes time, as MSMEs, without assured demand, are wary of investing in niche areas like aerospace manufacturing.

However, the revised scheme, with its streamlined processes and emphasis on supplier networks, offers hope. By incentivising anchor manufacturers to mentor MSMEs, the sector can replicate the mobile industry’s success. This model, if scaled nationally, could rapidly add an edge to “Make in India” and turn it into reality.

Another critical gap is our reliance on imported subsystems. While the 2022 ban curbed finished drone imports, components like lithium batteries, sensors, and flight controllers still trickle in from China. Therefore, there is an urgent need to strategically create an indigenous system that catalyses self-reliance.

To achieve it, India must prioritise five areas – propulsion systems, battery tech (partnering with ISRO for space-grade solutions could be one of the solutions), semiconductor-driven sensors, homegrown flight software, and advanced materials like carbon fibre.

The EY-FICCI report’s projection of a INR 2,300 Cr market by 2030 hinges on this pivot.

Bridging The R&D Gap

Equally urgent is bridging the R&D divide. While institutions like CSIR-NAL provide testing infrastructure, there is also a need for a mission-mode collaboration between academia and industry. While the former fosters innovations, the latter can utilise indigenous scientific breakthroughs to develop drones that can compete with the best in the world.

Given the sector’s potential, much more needs to be done to foster it. These measures could include planning a national R&D cluster or a “Drone Valley”, akin to Hyderabad’s Pharma City, which is backed by tax incentives for intellectual property (IP) creation and collaboration with the Centre to solve sector-specific problems, like optimising crop-spraying drones for Indian .

India’s drone supply chain also faces another challenge – regulatory ambiguity around certifications, which slows production. Strengthening self-reliance demands streamlining approval processes through unified digital platforms and incentivising domestic manufacturing via fiscal support, including grants for material innovation and tax rebates for private sector collaborations.

Bureaucratic processes also need to be streamlined if innovation is to flourish. For example, from application to final tests, gaining certifications takes time – something a startup cannot afford. Simplified drone certification sandboxes for non-defence applications and state-level single-window systems, like Gujarat’s pioneering model, could slash compliance costs. Defence contracts, too, must prioritise startups for niche tech procurement.

Finally, efforts must also be undertaken to shatter the perception that ‘Made in India’ drones compromise quality. For this, it is necessary to set up industry standards. Adopting ASTM International norms, creating a “Drone Mark” certification, and showcasing Indian drones in global forums (like Dubai’s logistics corridors) will rebuild trust.

The Conclusion

Nevertheless, the roadmap is clear – a tripartite pact between government, industry, and academia is must to foster a vibrant drone manufacturing ecosystem. The government must simplify policies, back R&D initiatives, and act as an anchor buyer.

Industry leaders should form consortiums for bulk material procurement and knowledge sharing. Academia must align curricula with emerging needs and integrate drone tech into engineering streams.

As is said, innovation without building the ecosystem is just a hobby. Even though the sector is witnessing healthy transformation, it has to gather further pace to thrive. Enabling homegrown drone tech startups and helping plug their pain points will not just make India a drone hub but also prove that our startups can turn constraints into catalysts for world-class innovation.

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