Madhya Pradesh is taking bold steps to position itself as a leader in India's drone manufacturing industry. With the newly approved Madhya Pradesh Drone Promotion and Utilisation Policy 2025, the state aims to foster drone production, assembly, and utilization across various sectors. By offering attractive incentives, subsidies, and infrastructure support, the government hopes to attract significant investments and create thousands of jobs.
A Strategic Push for Drone Manufacturing
Drones are rapidly transforming industries such as agriculture, logistics, security, and governance. Recognizing this potential, Madhya Pradesh has formulated a policy that not only encourages drone manufacturing but also promotes their adoption in key sectors.
To make the state a preferred destination for drone companies, the government is offering a 40% capital investment subsidy, capped at ₹30 crore for new projects. Additionally, companies can avail a 25% subsidy on lease rent (up to ₹5 lakh per year) for three years and a ₹2 crore R&D grant in selected fields. These financial incentives aim to lower the entry barriers for businesses and startups looking to invest in drone technology.
Also read: A glimpse into budget 2025 for the drone industry.
Boosting Skill Development & Employment
One of the key highlights of the policy is its focus on workforce development. The Chief Minister’s Seekho-Kamao Yojana (MMSKY) provides an incentive of ₹8,000 per month for six months to individuals undergoing drone-related training. This initiative is expected to equip young professionals with the necessary skills to meet the growing demand in the drone sector.
Moreover, the government is targeting an investment inflow of ₹370 crore over the next five years, which is expected to generate 8,000 new jobs (2,200 direct and 6,600 indirect). By creating a skilled workforce and a business-friendly environment, Madhya Pradesh is laying the foundation for a thriving drone ecosystem.
Attractive Incentives for Investors
The policy introduces several financial perks to encourage investment in drone manufacturing. These include:
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100% stamp duty and registration fee waiver for leased industrial land.
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Up to ₹5 lakh per year (capped at ₹20 lakh) for capital support related to testing, calibration, and certification.
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Patent filing support, with the state covering ₹5 lakh for domestic patents and ₹10 lakh (or actual costs) for international patents.
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Mega-scale incentives for businesses investing over ₹50 crore, ensuring that large players in the industry receive enhanced benefits.
The Growing Drone Market & MP’s Opportunity
The drone industry is on a remarkable growth trajectory. The global drone market, valued at $71 billion in 2022, is expected to nearly double to $144 billion by 2030. Meanwhile, India’s drone market is projected to soar from $2.71 billion today to $13 billion by 2030.
Madhya Pradesh wants to capitalize on this booming industry by offering a business-friendly environment, modern infrastructure, and skilled talent pool. The state’s policy aligns with India’s larger vision of becoming a global leader in drone technology.
Also read: Khargi kamikaze - Indian army’s high-speed attack drone.
Drones: Transforming Multiple Industries
Madhya Pradesh envisions drones playing a pivotal role in various sectors, including:
Agriculture: Enhancing Precision & Productivity
Drones are revolutionizing farming by enabling precision agriculture. They help monitor crops, spray pesticides, and collect vital data, ultimately improving productivity and efficiency. By integrating drone technology, farmers can reduce costs while increasing yields.
Infrastructure & Logistics: Driving Efficiency
Drones offer cost-effective solutions for surveying, mapping, and monitoring infrastructure projects. They ensure greater accuracy in construction planning and tracking, reducing time and expenses for large-scale developments.
Security & Governance: Strengthening Surveillance
Drones are playing an essential role in law enforcement, disaster management, and crowd control. Their ability to provide real-time aerial monitoring makes them valuable tools for ensuring public safety and enhancing governance.
Green Zones & the Future of Drone Operations
One of the biggest enablers for widespread drone adoption is the designation of 90% of Indian airspace as ‘Green Zone’ for drone operations. This move paves the way for businesses, startups, and government agencies to scale their drone-based solutions without excessive regulatory hurdles.
With a policy focused on reducing costs, fostering innovation, and streamlining operations, Madhya Pradesh is set to lead India’s drone revolution. The state’s vision is not just to manufacture drones but to integrate them into critical industries, improving efficiency, reducing costs, and fostering technological advancements.
Final Thoughts
Madhya Pradesh’s ambitious drone policy is a game-changer for India’s UAV industry. By attracting investment, generating employment, and promoting innovation, the state is well on its way to becoming a major drone hub.
As industries across the country continue to adapt drone technology, MP’s forward-thinking approach ensures that it remains at the forefront of this technological evolution.
