Meta title - Localizing Drone Technology: A Boon for India's Aerospace Sector
Meta desc - Discover how India's push for drone technology localization aims to strengthen national security and boost the aerospace sector through import substitution
The Indian aerospace sector is about to undergo an evolution as the government works with domestic business leaders to strengthen localisation efforts for drone technology. Recent debates have mostly focused on how India could reduce its reliance on imported drones by developing superior, indigenous alternatives capable of meeting national security and commercial requirements. A crucial feature of this project is to replace imported drone components with locally manufactured alternatives while also encouraging innovation in unmanned aerial vehicles (UAVs).
This strategic effort comes amid increased global security concerns, particularly in light of recent events that have highlighted the significance of drone security.
The shifting focus to a self-sustaining drone ecosystem
Senior officials from India's drone sector have met with government representatives to discuss the creation of a self-regulatory framework for the industry, with the goal of ensuring high manufacturing standards. This self-regulation would apply not only to the professional drone sector, but also to its subcategories, such as thermal drones, underwater drones, and UAV drones.
Industry experts believe that new regulations will allow top rated drones to be manufactured domestically, particularly those used in specialized industries such as defence, mining, and industrial inspections. Currently, India relies heavily on imported drones and camera systems, limiting control over both technology and security.
Why the focus on import substitution?
A significant driver for local produce is the strategic requirement to control the influx of imported drones and drone aircraft systems. With advanced technology becoming more integrated into both defence and commercial drones, there is a need for more control over critical components such as drone cameras, autopilot software, and encrypted communication modules.
As officials point out, relying on foreign-made unmanned aerial vehicles has concerns. "The need for India to have its own advanced professional drone camera technology is urgent," claimed a top government official. This emphasis is not only on building drones, but also on crucial components such as batteries and collision avoidance systems.
By localizing these technologies, India intends to develop proprietary drone technology for defence and high-risk commercial applications. Industry players believe that a mix of incentives and self-regulatory standards could lessen reliance on foreign technologies while improving the quality and security of indigenous drones.
What are the challenges involved in localization?
Despite strong government support, building a localized supply chain for drone components presents challenges. Advanced components such as professional drone cameras, battery packs, and software are mostly imported. Many firms, including IdeaForge Technology and Marut Drones, are discussing ways to replace these imports with Indian-made components like autopilot and other software-based systems. According to Ankit Mehta, CEO of IdeaForge, "Our focus is on developing high-quality drones and drone components that meet global standards and reduce reliance on imports."
The localisation effort overlaps significantly with other industries, such as electronics and cell phones, where components such as cameras and display systems are also being indigenised. The goal is to develop an Indian ecosystem capable of producing essential drone components and eventually entire professional drones, including UAVs for defence and high-tech commercial uses.
A gradual approach to localization targets
A staged approach is being formed to encourage manufacturers to gradually replace imported goods with Indian-made alternatives, with the goal of achieving significant progress within five years. Marut Drones, for example, is developing essential UAV components such as encrypted software, tamper-proof collision avoidance, and high-precision cameras.
The Directorate General of Civil Aviation (DGCA) has promoted self-regulation in the industry since the local market is currently small and overly rigorous government participation could limit progress. However, even with this autonomy, the industry recognizes that component localization is vital for creating globally competitive UAV drones.
Incentives to boost local production and R&D
The Indian government intends to provide a major incentive package to promote this localisation effort. On September 17, it was announced that a ₹3,000-crore ($360 million) incentive scheme was in development, with ₹1,000 crore set aside for private-sector R&D. This support is critical for developing home-grown innovations in drone aircraft, underwater drones, and other future applications, enabling businesses to replace imported solutions with locally generated ones.
Moving towards export viability
With import substitution as its primary goal, India's drone industry hopes to expand its export potential by setting consistent standards for quality and performance. Arun Nagarajan, a partner at EY India, believes that standardized quality procedures will generate a global market for Indian drones. By developing a standard set of benchmarks for all drones—whether high-end UAV drones for defence or underwater drones for commercial use—the country could one day grow into a significant supplier of high-quality drones.
However, several industry experts warn that achieving this export viability requires first developing significant demand within India. According to Mughilan Thiru Ramasamy, CEO of Skylark Drones, local demand for drones is still limited to specific areas such as mining, making it difficult for producers to reach economies of scale.
Final thoughts
Industry executives acknowledge that, while conversations with the government are still in their early stages, they represent a critical step towards a self-sustaining drone ecosystem. Building advanced drones in India and reducing reliance on imports will take time, but a steady approach would allow manufacturers to increase production without sacrificing quality. By focussing on high-quality drone components, professional drones, and innovative UAV technology, India can strengthen its aerospace sector and potentially emerge as an international drone industry leader.
