NEW DELHI, July 6 (TNF): India plans to roll out a $234 million incentive program to boost domestic drone production and cut dependence on imports, according to what is reported by the Dawn News. The move comes as India seeks to counter Pakistan’s drone efforts backed by China and Turkiye.
The three-year scheme will cover manufacturing of drones, components, software, counter-drone systems, and services, two government officials and one industry insider told Reuters. They requested anonymity as the details are not public. The scheme’s planned spending surpasses the earlier 1.2 billion Indian rupees drone incentive from 2021, which failed to attract major investments.
India’s civil aviation ministry, which is leading the effort, and the defence ministry did not reply to emails from Reuters seeking comment. The government aims for 40% of key drone parts to be locally made by March 2028, the officials added.
The plan follows the latest military face-off with Pakistan. After blaming Islamabad for the May 6 Pahalgam attack, India launched overnight airstrikes that killed civilians. Both countries exchanged missiles over the next week. It took U.S. intervention to end the fighting.
Indian Defence Secretary Rajesh Kumar Singh said last week, “There was heavy use of drones, loitering munitions, and kamikaze drones on both sides during the conflict. The lesson we’ve learned is to double down on indigenisation and build a large, effective military drone manufacturing ecosystem.”
India has mainly imported military drones from Israel, its third-largest arms supplier. But its local drone industry has grown, offering affordable options to the military. Yet, India still relies on China for motors, sensors, and imaging systems.
India already bans drone imports but allows parts. The new program will give extra benefits to firms that source parts locally. The Small Industries Development Bank of India will support manufacturers by offering low-cost loans for working capital and R&D.
An industry source told Dawn News that more than 600 companies in India are linked to drone manufacturing and related services. Reuters reported earlier that India might spend up to $470 million on UAVs in the next 12 to 24 months.
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