New Delhi– India has unveiled a $234 million incentive programme to strengthen its drone industry, aiming to reduce dependency on imports and counter Pakistan’s rapidly advancing drone capabilities. The plan, spanning three years, will support the production of drones, key components, software, and counter-drone systems.
Officials confirmed that the programme, led by the civil aviation ministry, also includes funding for research and development. The state-run Small Industries Development Bank of India will provide low-interest loans to drone manufacturers.
The announcement follows a week-long military escalation between India and Pakistan. India launched airstrikes on Pakistan after blaming Islamabad for the deadly Pahalgam attack. In return, missile exchanges between the two nuclear-armed nations raised alarms. It took U.S. intervention to bring the situation under control.
Lessons from Conflict Drive Policy Shift
Indian officials said the conflict exposed gaps in self-reliance and the need for stronger defence tech capabilities. “There was extensive use of drones, loitering munitions, and kamikaze drones during the conflict,” said Defence Secretary Rajesh Kumar Singh. “We’ve learned we must accelerate indigenisation.”
Currently, India imports many drone components, particularly from China. The government aims to manufacture at least 40% of key components locally by 2028.
This new incentive dwarfs India’s earlier drone-linked support scheme, which was worth only 1.2 billion Indian rupees. Startups have struggled due to lack of funding, global competition, and regulatory delays. Officials now hope the larger scheme will energise the sector.
According to industry estimates, India has more than 600 companies working on drone technology. However, few have been able to scale due to limited access to capital and technical bottlenecks. The new funding plan hopes to address both.
At the same time, India continues to ban drone imports while encouraging domestic production through targeted incentives. Firms sourcing components locally will receive additional support.
Strengthening India’s Strategic Edge
With China and Turkiye backing Pakistan’s drone sector, India sees this push as critical for national security. Military planners also believe a robust local drone ecosystem will offer faster adaptation to evolving battlefield needs.
In conclusion, the Indian government’s investment signals a strategic shift. It aims to build a resilient, self-sufficient drone industry to match regional threats and reduce reliance on foreign suppliers.
