The Indian government is preparing to launch a more streamlined and efficient Production-Linked Incentive (PLI) scheme for the drone sector. This move comes after acknowledging the shortcomings of the first PLI scheme, introduced in 2021, which posed challenges for startups and MSMEs in the industry. The upcoming PLI aims to foster innovation while easing implementation and documentation procedures.
Credits: Deccan Herald
Reflecting on the First PLI Scheme
The first PLI project, which was introduced with a ₹120 crore investment over three years beginning in 2021–2022, was a critical step in assisting the emerging drone sector. However, there were challenges due to the intricate procedures of the scheme, particularly for new and small enterprises. The Civil Aviation Secretary, Vumlunmang Vualnam, acknowledged that these bureaucratic procedures burdened MSMEs needlessly and impeded the industry’s expansion.
Now that the PLI’s initial phase has ended, the government is preparing for a revised version that would prioritize streamlining procedures and boosting involvement from newcomers and startups. The goal is to foster an atmosphere that encourages creativity and reduces the burden of paperwork.
Credits: News9 Live
A Broader Vision for the Drone Industry
In outlining the next steps, Vualnam pointed out that drones have become essential tools for a wide range of applications, from civilian and commercial uses to security and defense. He stressed that the drone sector must be categorized into three distinct segments:
Civilian use: Drones are increasingly being used for tasks like agricultural monitoring, surveying, and even medical deliveries.
Security and defense: The military has already embraced drone technology for surveillance and combat purposes, and the government continues to prioritize this area.
Rogue or unregulated use: The government is aware of the potential misuse of drones, including incidents of unauthorized or dangerous usage, which could jeopardize the industry’s reputation.
“We have to be very clear about how we approach these three areas,” said Vualnam. While drones offer immense potential, the possibility of misuse cannot be ignored. In response, the government is investing in counter-drone technologies to mitigate such risks and ensure the sector continues to flourish without security concerns holding it back.
FICCI’s Recommendations: Bigger Outlay, Counter-Drone Systems
At a recent conference organized by industry body FICCI (Federation of Indian Chambers of Commerce & Industry), experts echoed the need for an evolved PLI scheme. They suggested that the government not only increase the financial outlay to ₹1,000 crore but also include counter-drone systems and components under the scheme’s next phase.
This recommendation is critical given the rising concerns about the misuse of drones, especially in sensitive security areas. A larger outlay will allow more startups to innovate in building not just drones but also the technologies required to counter rogue drones.
With enhanced support, the sector can focus on developing drones with more indigenous components and sub-systems, reducing the industry’s reliance on imports. This emphasis on domestic manufacturing aligns with the government’s broader Atmanirbhar Bharat (Self-Reliant India) initiative.
Empowering Women through the Namo Drone Didi Scheme
The upcoming PLI scheme isn’t just about creating drones—it’s about creating opportunities. One of the government’s most exciting initiatives is the Namo Drone Didi Scheme, which aims to empower rural women by providing them with agricultural drones. Under this scheme, 15,000 drones will be distributed to women-led self-help groups, allowing them to embrace technology in agricultural practices.
Already, 1,000 drones have been procured and distributed, and Vualnam announced that tenders for another 3,000 drones are ready to be issued. This scheme is not only set to boost rural agricultural productivity but also to uplift women by giving them access to advanced tools and creating avenues for entrepreneurship.
Indigenization: The Need for Homegrown Technology
While supporting drone startups is key, experts like Major General C S Mann, Additional Director General at the Army Design Bureau, stress the importance of indigenization in the sector. He called for truthfulness in claims of domestic manufacturing capabilities, cautioning that only genuine efforts toward local innovation will truly address the challenges of the drone industry.
“We need to identify critical components that can be developed indigenously. Only then will we be able to secure the industry’s future,” Mann said. His remarks reflect the broader sentiment that India’s drone industry needs to focus on self-reliance, ensuring that critical parts and systems are manufactured within the country.
