This shift reflects how policies, regulations and collaborations have turned the drones into a fast-growing area. Smit Shah, President, Drone Federation of India, shares his insights on policy advocacy, technology development, training and education.
Regulation at the Right time
The Drone Regulations 2018 provided structure but also introduced friction. Later in 2021, the revised rules simplified processes, enabling the industry to take off. Policy support, including the Production Linked Incentive (PLI) scheme, boosted manufacturing, while relaxed import-export norms improved global positioning. However, full indigenisation remains a work in progress. “The sector currently operates at around 70-80 per cent localisation with critical components still reliant on the global supply chains,” points out Shah. That said, domestic capabilities are steadily strengthening, with over 200 drone component suppliers now active across India’s growing ecosystem, signalling a gradual but clear shift towards self-reliance.
Trouble in taking off
Despite the policy progress, focus needs to shift towards adoption of drones. Currently, public sector agencies use 60-65 per cent of the drones. While central policies focus on expansion, the implementation at the state level is inconsistent. Integration of drones into routine procedures and using them in various sectors such as agriculture, forestry and urban governance remains limited. “To create large-scale impact, greater focus must be placed on bridging the gap between policy intent and on-ground adoption,” highlights Shah.
As India expands drone operations domestically and globally, access to capital remains constrained. This is especially for defence-focused firms, where investor caution slows start-up scaling. Despite the government initiatives and the private investments trying to address this issue, funding gaps remain as a hurdle in this ecosystem. Similarly, regulatory clarity is still evolving, particularly for Beyond Visual Line of Sight (BVLOS) operations. This limits large-scale deliveries and advanced surveillance which are critical for the sector’s next phase of growth.
Building the backbone
“There is a significant need for drone pilots,” notes Shah. Now there are over 200 DGCA-certified training schools active in India. Beyond piloting, the ecosystem also requires expertise in data analytics, system design, and maintenance. AI is also playing a pivotal role. “AI is now embedded across multiple stages from data processing and on-the-edge algorithms to design and maintenance optimisation,” highlights Shah. Drones generate vast amounts of data during flight, which AI processes to deliver actionable insights for decision-making. Real-time edge processing enables drones to detect defects or flag risks instantly, improving efficiency in critical operations. AI also reduces costs through predictive maintenance, enhances performance, and improves system reliability, transforming drones into smart, data-driven systems.
To support this further, IIT Kanpur has introduced a specialised programme in drone technology, marking a key academic intervention. Shah emphasises the need to integrate drone-related modules into core engineering disciplines to better align education with evolving industry demands and future workforce requirements.
From a research and innovation perspective, IIT Madras and IISc Bangalore play a crucial role in supporting startups. As a part of signalling this collaboration, recently India’s National drone innovation challenge was hosted by the Ministry of Electronics and Information Technology, and the Drone Federation of India which witnessed participation from 361 teams across 26 states and union territories. Students were given tasks to develop drones for real-world applications such as disaster management and precision agriculture. This really shows the interest in drone technology from both the industry and academic sides, which will help in unlocking the full potential in the ecosystem.