India's drone sector is racing ahead, from farms to the front line
India's drone sector has moved from experiment to infrastructure. The change is visible in farms, in village land records, on highways, on railway lines, and in defence planning. By February 2026, India had more than 38,500 registered drones. It had 39,890 certified remote pilots.
It had 244 approved training organisations. Those figures describe a regulated ecosystem, not a hobby market. Revenue tells the same story of acceleration. Sector revenue rose from ₹ 60 crore in 2021 to ₹ 4,000 crore in 2025. That is a 66-fold rise in four years.
The commercial market was put at $1.88 billion, or ₹ 17,000 crore, in FY26. It was expected to grow at a compounded 17.98 per cent rate during FY25 to FY29. Globally, the United States leads the commercial drone industry, followed by China, with India ranked seventh. Policy made much of this possible. The Drone Rules, 2021, cut forms from 25 to 5.
They cut approval requirements from 72 to just 4. Fees were rationalised and delinked from drone size. Civilian operations were permitted for drones weighing up to 500 kg. Nearly 90 per cent of Indian airspace was declared a Green Zone for flights up to 400 feet. A Remote Pilot Certificate replaced the older pilot licence requirement.
The Production Linked Incentive program for drones and drone components carried an approved outlay of ₹ 120 crore. It aimed to promote high-value domestic manufacturing. It helped Indian Start-Ups and MSMEs scale production capacity. An import ban on completely built drone units channelled demand toward domestic makers. In September 2025, GST on drones was reduced to a uniform 5 per cent. Earlier rates of 18 per cent and 28 per cent were removed.
Smit Shah, President of the Drone Federation of India, summed up the policy mix in plain terms. 'The biggest game changer was the combination of the Drone Policy of 2021, the PLI scheme and the import ban, all centred around the Make in India vision,' he said.
He added: 'Because of initiatives like Make in India, the entire drone ecosystem of the country today exists.' Agriculture has become the dominant civilian use. About 70 per cent of the 122 Type Certificate holders had certification for agricultural drones, mainly for spraying.
Another 24 per cent operated in surveillance and mapping. Drones can cut agrochemical spraying costs by nearly 80 per cent compared with manual spraying. They can cover 6 to 6.6 acres in the time manual labour covers one acre. After efficiency and depreciation, drones were found to be over 78 per cent more cost effective than manual labour. The Namo Drone Didi program, launched in November 2023, gives drones to Women Self Help Groups.
It aims to improve farm efficiency, raise crop productivity, reduce input costs, and create sustainable livelihoods. By February 2026, 1,094 drones had been distributed to women SHGs, including over 500 under Namo Drone Didi. The program has an allocation of ₹ 1,261 crore through 2026. It aims to provide 15,000 women SHGs with drones for farm-related rental services. A Drone Didi from Sitapur, Uttar Pradesh, featured in the 110th episode of Mann Ki Baat, showed how training enabled her SHG to offer spraying services to farmers. That work raised income and social empowerment.
Governance at scale has given the sector anchor demand. Under the SVAMITVA program, drone surveys were completed in 3.28 lakh villages by December 2025. That was about 95 per cent of the overall target of nearly 3.44 lakh villages. By December 2025, 2.76 crore property cards had been prepared for 1.82 lakh villages across 31 states and Union Territories. Clear drone-mapped records reduce land disputes. They also improve access to bank credit.
The National Highways Authority of India mandates monthly drone-video recordings for all highway projects. Contractors upload current and prior-month footage for comparison. Supervision consultants analyse the recordings in digital monthly progress reports. The footage also serves as a permanent record in dispute resolution. The Ministry of Railways has directed zones and divisions to deploy drones for monitoring tracks, bridges, and infrastructure. The Railway Protection Force uses drones for security surveillance in rail yards, station premises, and along tracks.
Drones support crowd management and anti-trespass operations. In disaster management, drones send live visuals from affected areas. That helps rescue teams understand floods, landslides, and other disasters quickly. Defence has become a powerful driver. Drones help the armed forces watch borders, gather intelligence, and carry out precise strikes. During Operation Sindoor, Indian drones and loitering munitions destroyed enemy targets safely and accurately.
The operation in May 2025 saw large-scale tri-service deployment of drones and missiles for precision strikes. The Armed Forces also neutralised hundreds of enemy drones and missiles through an integrated air defence shield.
The Ministry of Defence later said: 'Loitering munitions were used to devastating effect, each finding and destroying high-value targets, including enemy radar and missile systems.' It added: 'The use of modern indigenous technology, from long-range drones to guided munitions, made these strikes highly effective and politically calibrated.' The Army has since released a Technology Roadmap for Unmanned Aerial Systems and Loitering Munitions. It identifies 30 types of UAS and loitering munitions covering 80 variants across five categories.
Those categories are surveillance, strike, air defence, special roles, and logistics. The Army plans to induct thousands of drones over the next few years. Drone training centres have been established at 19 key training establishments. Over 50,000 personnel have been trained in drone operations under the Army Training Command's Drone Training Infrastructure. The Army's vision is that every soldier will be trained in drone operation by 2027. Indian companies now span the full chain.
ideaForge focuses on defence, surveillance, and mapping drones. Garuda Aerospace builds Kisan agricultural drones and border systems. Raphe mPhibr, NewSpace, Zuppa, Dhaksha, Big Bang Boom Solutions, and Indrajaal work across military drones, swarms, autopilots, farm systems, and counter-drone systems. Airbound, Skye Air, and TechEagle focus on delivery. Aereo focuses on mapping. Drone Destination and DroneAcharya focus on training, services, and analytics.
Paras Defence works on defence optics and counter-drone technology. Large firms such as L and T, BEL, and HAL also have drone exposure. Funding, however, has been uneven. Military and defence drone Start-Ups raised $159.2 million in equity funding in 2025. That was a 343.1 per cent year-on-year rise. In 2026, up to 5 October, they had raised just $4.39 million.
That was 97.2 per cent less than in all of 2025. One founder said the fall partly reflected companies still absorbing large sums raised the previous year. Dual-use Start-Ups held up better, raising $48.2 million in the same 2026 period. India still has the world's second-largest pool of defence-tech companies, with 416 firms. Only about one in four has raised funding. The deepest risk is component dependence.
Smit Shah warned: 'The dependence on foreign-made motors, batteries, flight controllers, communication systems and rare earth magnets leaves the sector vulnerable to supply disruptions and export restrictions.' He added: 'We have built a strong assembly base, and more than 160 drone models now hold type certificates.
But a drone is only as Indian as the parts inside it, and most flight-critical parts are still imported.' He also warned: 'Any single source for a flight-critical part is a risk, because supply can be cut overnight.' China accounts for about 94 per cent of global permanent magnet production. China tightened export controls on drone-related technologies in stages. Restrictions covered certain drone components in September 2024 and rare earth magnets in April 2025.
Wider controls on autopilots, radios, motors, and speed controllers were set to follow from 18 November. At the Bharat Drone Stack Conference 2026, held on 12 and 13 November in Bangalore, the Army and Air Force pressed manufacturers to build critical components at home. The conference brought together more than 80 Indian component manufacturers, policymakers, defence representatives, and technology developers.
The Drone Federation of India was expected to release a policy paper, Making the Swadeshi Switch, with 22 recommendations. Its proposals included Indian-content requirements in drone type certification. They included a clear definition of a drone kit, to stop imported assemblies being passed off as domestically made.
They included gradually increasing import duties where Indian alternatives exist. Civil demand also needs stronger support. Certification for beyond visual line-of-sight operations is essential. A functional unmanned traffic management system is essential too. Shah said: 'Civil demand is important because it provides the volume that makes a component maker's business viable beyond defence orders.' The outlook remains strong, but execution will decide it. Shah projected a ₹ 19,000 crore to ₹ 20,000 crore industry in the coming years.
The Drone Federation of India estimated the industry could grow from ₹ 5,720 crore at present to around ₹ 97,300 crore by 2030-31. The domestic drone component market alone was targeted at $3.08 billion. The sector is expected to generate over 1,20,000 jobs in manufacturing. It is expected to generate more than 6,00,000 positions in services. That is over 7.2 lakh jobs in total.
India's drone story is therefore not only about defence or delivery. It is about a village woman becoming a certified pilot, spraying her neighbours' fields, and earning an income. It is about clear property records, safer railways, faster disaster response, and sharper border awareness.
The next test is clear. India must move from assembly to full-stack indigenous manufacturing, from imported flight-critical parts to a resilient domestic supply chain, and from pilot projects to dependable volume.
If it does, the sector that moved so fast will also endure.
IDN (With Agency Inputs)
_YFQ-48A_Talon_Blue_Drones.jpg)
