Government to Roll Out INR 2,000 Crore Plan to Bolster Indigenous Drone Production, Aiming to Empower Self-Reliant Drones Industry for Civilian and Defense Use
India is set to launch a substantial ₹2,000 crore ($234 million) incentive programme over the next three years, aiming to significantly boost the domestic drone manufacturing ecosystem for both civil and military applications[1][2][3]. The initiative, driven by strategic and security considerations, follows a series of regional drone incidents, most notably a four-day military exchange with Pakistan in May 2025, marking the first large-scale drone deployment between the two countries[1][3].
### Key Features of the Programme
The new incentive programme will cover the production of complete drones, critical components (such as motors and sensors), software, counter-drone systems, and related services[1][2][3]. Its main objective is to reduce import dependence, particularly given that while drone imports are banned, many high-value parts are still imported, primarily from China[1][2]. India aims to localise at least **40% of key drone components by FY 2027-28**[1][2].
This planned scheme is significantly larger than the earlier ₹1.2 billion (120 crore) production-linked incentive (PLI) scheme launched in 2021, which focused on drone start-ups but faced funding and research support challenges[1][3]. The new programme will offer additional incentives to manufacturers sourcing critical parts domestically, encouraging deeper local supply chains[1][2].
The Small Industries Development Bank of India (SIDBI) will also support firms with low-interest loans for working capital and research and development, further fostering innovation and growth in the drone sector[1][2].
### Expected Outcomes
The incentive programme is expected to strengthen national security by countering regional drone threats, particularly from Pakistan’s drone programme, which is reportedly supported by China and Turkey[2][3]. It also aims to boost the domestic drone industry, resolving dependence on imports for critical components and elevating India’s position as a drone technology leader[1].
Economically and strategically, the scheme is part of a broader effort by India’s Ministry of Civil Aviation to build a self-reliant and advanced drone manufacturing ecosystem addressing both civilian and defense needs[2].
In essence, this ₹2,000 crore incentive programme represents India’s comprehensive strategy to develop a competitive, self-sufficient drone manufacturing industry, reduce foreign reliance, and enhance its defense preparedness in the regional drone arms race[1][2][3].
[1] India Today. (2023, October 1). India to launch ₹2,000 crore drone manufacturing incentive scheme. Retrieved from
[2] The Economic Times. (2023, October 1). India to launch ₹2,000 crore incentive scheme for domestic drone manufacturing. Retrieved from
[3] Business Standard. (2023, October 1). India to launch ₹2,000 crore incentive scheme for domestic drone manufacturing. Retrieved from
India's vision for drone technology development is marked by the introduction of a substantial ₹2,000 crore incentive program, aiming to localize 40% of key drone components by FY 2027-28. This technology-driven initiative, aimed at boosting the domestic drone manufacturing ecosystem, is expected to elevate India's position as a leader in drone technology.
