The Ministry of Commerce and Industry’s Directorate General of Foreign Trade (DGFT) has taken a significant step towards simplifying and liberalizing the export policy for civilian drones/UAVs from India. This move aligns with the objectives of India’s Foreign Trade Policy 2023 and aims to promote the export of domestically manufactured drones/UAVs for civilian purposes while considering international non-proliferation commitments. The amendment to the SCOMET (Special Chemicals Organisms Material Equipment and Technology) policy and the introduction of the General Authorization for Export of Drones (GAED) are key aspects of this policy change.
Amendment to SCOMET Policy: Removing Restrictions for Export
Previously, all types of drones/UAVs were restricted for export under Category 5B of the SCOMET list, which includes items subject to specific regulations due to their potential dual-use nature. Exporting drones required a SCOMET license, posing challenges for the industry, particularly for drones designed solely for civilian use. Recognizing the need for a simpler export process, the SCOMET policy for drones/UAVs meant for civilian use has been amended.
General Authorization for Export of Drones (GAED): Simplifying Export Process
Under the new policy, the export of drones/UAVs falling outside the specified categories in the SCOMET list, with a range equal to or less than 25 km and a payload of not more than 25 kgs (excluding software and technology), will now be subject to the General Authorization for Export of Drones (GAED). The GAED serves as a one-time general license that remains valid for three years. This means that drone manufacturers/exporters no longer need to apply for a SCOMET license for each similar export shipment intended for civilian purposes within the three-year validity period.
Reduced Compliance and Ease of Doing Business
The introduction of the GAED significantly reduces the compliance burden on the drone industry. Manufacturers/exporters are now able to streamline the export process for all types of civilian drones/UAVs. While post-reporting and other documentary requirements must still be fulfilled, the overall compliance requirements have been simplified. This change promotes ease of doing business and facilitates the growth of the drone/UAV industry in India.
Boosting India’s Position as a Global Manufacturing Hub
The liberalization of export controls not only simplifies the process but also positions India as a global manufacturing hub for drones/UAVs. This policy change presents opportunities for start-ups and new drone manufacturers to scale up their operations and explore international markets. Indian drone manufacturers can now access larger markets and compete on a global scale, contributing to the growth of the country’s economy.
Encouraging Innovation and Technological Advancements
With liberalized export controls, the drone/UAV industry in India is expected to witness increased innovation and technological advancements. The simplified export process and expanded market access create a conducive environment for manufacturers to invest in research and development, driving the industry forward.
