Union Minister of Commerce & Industry, Shri Piyush Goyal in his address at the International Innovation Conclave organized by the PHD Chamber of Commerce & Industry (PHDCCI) in New Delhi lauded the development of technology and growth in the drone industry and said that the Indian government plans to promote the rapidly developing sector by limiting regulation burdens for startup ecosystems under the Ease of Doing Business (EoDB) initiative.
The Commerce and Industry Minister remarked that the government plans to kickstart the drone industry in India with the implementation of the Production-Linked Incentive (PLI) Scheme which should not be regarded as a permanent subsidy scheme as the industry should not remain dependent on government subsidy for development.
With the onset of liberal drone policies by the Government of India, the unmanned aerial vehicles (UAV) ecosystem has driven impactful results. The industry has developed rapidly in the last three years with windfall investment from foreign investors and requires infrastructure development for further expansion. SIDBI (Small Industries Development Bank of India) can be crucial for financing and mentoring the drone ecosystem as per the Union Minister.
Taking significant measures for the startup ecosystem, the Cabinet has approved a Rs 120 Cr PLI scheme, banning drone imports to push for domestic manufacturing, and introducing certification schemes for safety and quality in the industry. Some other commendable initiatives include digital airspace mapping, Drone Shakti, and Kisan drones.
He affirmed the development of the drone ecosystem extending to Village areas, to promote PM’s ‘NAMO Drone Didi’ initiative which subsequently helps to end gender disparity in the agriculture sector.
The drone industry can be viable for the cooperative sector by helping farmers increase the yield of high-quality crops by tracking weather patterns. Additionally, the drone ecosystem can function with Self-Help Groups (SHGs) and Farmers’ Producer Organisations (FPOs) with the help of agri-infra funds in delivering fertilizers and cutting down on the costs for the farmers.
The Union Minister also enlisted the plans of administration in PM’s third tenure that include tripling the speed and result and making India the third largest economy in the world.
So far in 2024, 18 Initial Public Offerings (IPOs) have been made while 17 IPOs were offered in 2023. The drone market in India has significantly developed with the launch of over 200 drone tech startups and the discovery of 13,000 registered drones.
By 2030, the Indian drone market will have reached $13 billion in size, with an estimated CAGR of 21% between 2022 and 2030.
The recent developments in the drone startup ecosystem have seen logistics unicorn Delhivery receive approval from the Ministry of Corporate Affairs (MCA) to establish its drone subsidiary.
In June 2024, Blue Dart collaborated with a domestic drone-making firm Skye Air to offer deliveries, and another drone maker IdeaForge expanded its employee stock option plan (ESOP) pool size by allocating 1,678 equity shares to its employees.
Shri Goyal added that the development of the infrastructure shall drive impactful results with the generation of employment, demand for goods and services, and increased consumption in India.
