The Central Government of India has taken a significant step to boost the nation’s drone industry by approving a Production Linked Incentive (PLI) scheme for drones and drone components. This move is aimed at attracting investments into the burgeoning field of drone manufacturing within the country. With an outlay of Rs. 120 crore spread across three fiscal years, the scheme is a part of India’s broader push to establish itself as a drone hub.
Financial Outlay and Job Creation
The PLI scheme comes with a financial outlay of Rs. 120 crore, which will be disbursed over the course of three fiscal years. The main objective of this initiative is to stimulate the drone manufacturing sector and to make India a global drone manufacturing hub. The government anticipates that this scheme will create approximately 10,000 direct job opportunities in the next three years. These jobs are expected to span across various functions in the drone manufacturing process, including design, assembly, and operation, thereby contributing to the growth of employment in the technology sector.
Investment Attraction and Industry Growth
In terms of financial investment, the scheme is expected to attract more than Rs. 5,000 crore over the next three years. This substantial inflow of funds is likely to provide the necessary capital for drone manufacturers to scale up their operations, invest in research and development, and enhance their production capabilities. The government’s approval of the PLI scheme is a clear indication of its commitment to fostering an environment conducive to investment and innovation in the drone industry.
Impact of Liberalized Drone Rules
The PLI scheme is not the only effort by the Indian government to advance the drone industry. It is complemented by the recently liberalized drone rules, which have been designed to reduce regulatory burdens and create a more favorable business environment for drone operators and manufacturers. These relaxed regulations are anticipated to further facilitate the growth of the drone industry by simplifying procedures, reducing compliance requirements, and lowering entry barriers for new players.
Projected Increase in Manufacturing Capability
As a result of the PLI scheme and the liberalized drone rules, India’s drone manufacturing capability is projected to experience a significant increase. The annual sales turnover of the drone manufacturing industry is estimated to grow from Rs. 60 crore in the fiscal year 2020-21 to about Rs. 900 crore by 2023-24. This remarkable growth represents a 15-fold increase within a span of just three years, underscoring the potential impact of the government’s initiatives on the industry.
Conclusion
The approval of the PLI scheme for drones and drone components by the Central Government marks a crucial step towards realizing India’s ambition to become a leading player in the global drone market. With financial incentives to spur investment, job creation, and a supportive regulatory framework, the stage is set for a transformative period in the drone manufacturing industry. The expected surge in annual sales turnover is a testament to the potential success of these measures. As the industry prepares to capitalize on these opportunities, the coming years may well see India emerge as a key hub for drone technology and innovation.
