Taking another step towards realizing our collective vision of an Aatmanirbhar Bharat, the Central Government under the leadership of Hon’ble Prime Minister Shri Narendra Modi has approved the Production-Linked Incentive (PLI) scheme for drones and drone components on 15 Sep 2021.
WHAT’S THE INDUSTRY REACTION?
Industry leaders have welcomed the scheme. Some of the statements made in media reports are as follows:
“Coming within three weeks of the liberalized Drone Rules 2021, the PLI scheme will act as a rocket booster for drone start-ups & MSME players at the nascent stage of their growth path.”
– Rajan Luthra, Chair, FICCI Drones Committee on Twitter
“Gives us great hope for the future of drones in India.”
– Paras Jain, Founder and Chief Executive Officer, Indo Wings Company in Times of India
“The PLI scheme along with the liberalized drone rules, 2021 issued by the government on 25th August 2021 will help realize this growth potential.”
– Swapnik Jakkampudi, Co-Founder, Sky Air Mobility in DQ India
“This PLI scheme is a welcome step to incentivize drone manufacturing and allied industries.”
– Huzefa Tavawalla, Nishith Desai Associates in Business Standard
“More than the incentive it is the importance and urgency that the government is demonstrating to indigenize this industry which is encouraging.”
– Chirag Sharma, Founder, Drone Destination in Moneycontrol
“The PLI scheme will be a big boost to this sunrise sector which has the potential to transform almost all sectors of the economy.“
– Anjali Rattan Nashier, RattanIndia Enterprises reported by PTI
WHY ARE DRONES IMPORTANT?
Drones offer tremendous benefits to almost all sectors of the economy. These include– agriculture, mining, infrastructure, surveillance, emergency response, transportation, geo-spatial mapping, defense, and law enforcement to name a few. Drones can be significant creators of employment and economic growth due to their reach, versatility, and ease of use, especially in India’s remote and inaccessible areas.
Given its traditional strengths in innovation, information technology, frugal engineering, and its huge domestic demand, India has the potential of becoming a global drone hub by 2030.
The PLI scheme comes as a follow-through of the liberalized Drone Rules, 2021 released by the Central Government on 25 August 2021. The PLI scheme and new drone rules are intended to catalyze super-normal growth in the upcoming drone sector.
WHAT’S THE LIKELY IMPACT OF THESE DRONE INITIATIVES?
Thanks to the new rules and the incentive scheme, the drones and drone components manufacturing industry may see an investment of over INR 5,000 crore over the next three years. The annual sales turnover of the drone manufacturing industry may grow from INR 60 crore in 2020-21 fold to over INR 900 crore in FY 2023-24. The drone manufacturing industry is expected to generate over 10,000 direct jobs over the next three years.
The drone services industry (operations, logistics, data processing, traffic management, etc.) is far bigger in scale. It is expected to grow to over INR 30,000 crore in the next three years. The drone services industry is expected to generate over five lakh jobs in three years.
TOP 15 FEATURES OF THE PLI SCHEME FOR DRONES, 2021
TOP 15 FEATURES OF DRONE RULES, 2021 (NOTIFIED ON 25 AUG 2021)
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