Govt looking to extend PLI scheme for drones and link it to R&D, says Civil Aviation Minister Naidu

The government is looking to extend the production-linked incentive scheme for drone manufacturing and link it with research and development to boost indigenisation, said Kinjarapu Rammohan Naidu, Union Minister of Civil Aviation, at TechSparks 2025.  

Naidu said Operation Sindoor highlighted the impact of drones and made it popular at the household level. The government now aims to make even the nuts and bolts of drones in India, he said, indicating how domestic drone manufacturers are dependent on imports for certain parts. 

This is why the government has banned the import of drones and launched the first PLI scheme, so as to promote domestic manufacturing.

“We are importing the systems right now and making the assembly," said the minister, who added that the civil aviation ministry wants to encourage more R&D in the drone industry. "We are trying to look at another scheme to extend this PLI and link it with research-linked incentives also."

The civil aviation ministry is also planning to hold extensive consultations on the proposed drone legislation to provide the right regulatory and policy support for the industry and domestic manufacturing.  

“We have the drones rules right now, and we have to convert it into an Act," the minister said. "We have to do heavy consultations before that because we have to hit the bullseye on this one." Naidu said there is heavy competition in the sector globally and countries are not only prepping for domestic consumption but also for exports. Likewise, India has great capacity and potential for large-scale exports.

The ministry aims to make the legislation industry-friendly, Naidu assured. 

He said drones have massive non-military usages and applications. Schemes such as 'Drone Didi’ in agriculture have made the sector a leading example of how drones can employ rural women and drive efficiency. Naidu said similar programmes and use cases across sectors can create immense value.   

The minister urged the industry to invest more in R&D.

“They (drone makers) are trying to design the ultimate drone, but getting parts from somewhere else. That’s not justifying the cause of the government and policy. We want each and every nut and bolt to be manufactured here only. That’s the ultimate objective for us,” he said.