The new PLI scheme’s potential to shape India’s drone-powered revolution
Drones, which were previously used only for defence services in India, have undergone a remarkable transition. Today, they are transforming industries such as healthcare and agriculture, reflecting their promise beyond the battlefield. As India positions itself as a significant actor in the Fourth Industrial Revolution, the country aims to become a worldwide leader in drone manufacturing by 2030. This goal is about more than simply technological domination; it is also about opening up economic prospects, with the potential to create nearly five lakh new jobs. The Production-Linked Incentive (PLI) program, which has been particularly designed for the drone industry, is at the core of this ambitious journey. This vision further intends to solidify India’s position as a drone superpower by stimulating innovation, supporting local production and boosting global competitiveness.
Drones: Key catalyst of industry 4.0
Recently, drones have become the foundation of Industry 4.0. They have transformed Indian agriculture by promoting sustainability and profitability. They provide accurate resource management by offering real-time updates on soil health, crop conditions and water consumption, reducing input costs and environmental effects. The targeted interventions based on drone images increase production potential while eliminating waste and making agriculture more profitable. Furthermore, drones provide early identification of pests and illnesses, allowing for prompt action and decreasing the need for chemical pesticides. The Kisan Drone Yatra and Production-Linked Incentive (PLI), inaugurated by Prime Minister Modi, further highlight the use of drones in empowering farmers and increasing agricultural output.
PLI scheme: Transforming the drone manufacturing landscape
The PLI initiative for drones is a vital step in India’s drive to become self-sufficient in modern technologies. The project, worth ₹120 crore, aims to incentivise producers by providing financial support of 20 per cent of value addition for three years. Unlike comparable programs for other industries, the PLI for drones offers customised relaxations to reflect the sector’s embryonic stage and potential for rapid expansion.
Furthermore, the programme promotes investment, research and manufacturing, ensuring that India’s drone manufacturers have the means to compete worldwide. Within three years, it is planned to produce ₹5,000 crore in investments and ₹1,500 crore in incremental revenues and create jobs for approximately 10,000 people. By balancing this policy with market needs, the government is creating an environment where Indian firms can succeed at manufacturing drones and their components.
With PLI promoting innovation, Indian manufacturers are focusing on producing low-cost and sophisticated drones for agriculture. Mr Pradeep Palelli, CEO & Co-founder of Thanos Technologies, highlighted this by stating, “The PLI scheme is a major changer in India’s drone manufacturing sector. It offers support to drone manufacturers in order to create and build drones for industries like agriculture, where efficiency and sustainability are crucial. This initiative’s assistance for agricultural drones can improve resource management, increase yields and reduce the resource intensity of farming. This is the type of breakthrough that can actually transform Indian agriculture while also aligning with Industry 4.0’s overarching ambitions.”
Additionally, the Directorate-General of Foreign Trade (DGFT) has imposed a ban on the import of drones for commercial reasons, with exceptions for R&D, military and security. This approach is designed to increase local drone manufacturing market share and capitalise on the enormous potential of the domestic market, boosting the “Make in India” program. Another government initiative, the Namo Drone Didi scheme aims to empower women-led Self-Help Groups (SHGs) by providing them with drone technology for agricultural services. The plan seeks to give drones to 15,000 chosen women SHGs between 2024-25 and 2025-2026 for agricultural leasing services. This project is estimated to produce an additional revenue of at least Rs. 1 lakh per year for each SHG, hence promoting economic empowerment and sustainable livelihood generation.
In conclusion, India’s mission to become a global drone leader is inextricably linked to initiatives like the PLI scheme and corresponding laws. These initiatives demonstrate a holistic strategy for stimulating innovation, increasing investment and revolutionising industries like agriculture. By supporting local manufacturing, the government ensures that drones benefit not just the economy but also contribute to a more sustainable and efficient future. As the world observes, India is all set to become a major player in the global drone revolution, demonstrating that technical innovation and economic growth can coexist.
The author is CEO & Co-founder, Thanos Technologies