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Indian Govt Invites Drone Industry To Apply For Rs 120 Crore PLI Scheme

By: Tech Desk


Last Updated: March 11, 2022, 12:42 IST

Drone companies are invited to apply.

Drone companies are invited to apply.

The incentive from the Government looks to establish a local drone ecosystem which is going to propel the delivery, logistics and agricultural sector.

The Indian government is now looking for active participation from the country’s drone industry and wants companies to apply for its special production linked incentive or PLI scheme that was announced in September last year.

The scheme is giving drone companies a chance to get a total incentive of Rs 120 crore which is covered over the period of three financial years. More importantly, the incentive benefits easily surpass the overall revenue generated by the Indian drone manufacturing setup.

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“PLI for a manufacturer shall be capped at 25% of the total annual outlay,” as explained by the government in its statement.

“The value addition shall be calculated as the annual sales revenue from drones and drone components (net of GST) minus the purchase cost (net of GST) of drone and drone components,” the statement further adds.

“Minimum value addition norm at 40 per cent of net sales for drones and drone components instead of 50 per cent, an exceptional treatment for drones.”

The Government sees the drone industry as another source of revenue in the future. And setting up the local base goes a long way in developing the sector. The Ministry has already put hurdles on importing of drones, as well as drone components for brands. And except for special entities like the defence, drone supplies are going to rely on the local ecosystem.

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All these changes are expected to work in favour of local manufacturing. And the Government foresees an investment of over Rs 5,000 crore over the next three years. In addition to that, it is likely to generate 10,000 direct jobs during this period.

Drones are being pitted as the next hub for commerce. Delivery and logistics are going to work in the same tangent as other fields like agricultural farming and similar practices.


It remains to be seen if these incentives are appealing enough to global drone brands like DJI to set up shop in India.

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first published:March 11, 2022, 12:42 IST
last updated:March 11, 2022, 12:42 IST