Over the last year and a half, the majority of drone related news coming out of India had to do with drones being used in conflicts along the India, China, Pakistan border. Marking a change of pace and progress, drones started being used in a more publicly beneficial manner in the summer of 2021 in many parts of the country. With the unique constraints put on the world from COVID-19, India too began embracing how drones could be used to help officials and citizens.

On August 26, 2021, India’s Ministry of Civil Aviation amended and replaced their Unmanned Aircraft Systems Rule with the Drone Rule 2021. The new drone regulations opened up new possibilities for any drone owners and operators in India. The Drone Rule mirrors many of the regulations put forth by countries like the United States, Canada, and the UK. It requires commercial drone operators to be licensed. Depending on the weight class of the drone, different vehicle registrations are needed. Once licensed and registered, drone pilots can apply for insurance policies. But perhaps the biggest change that comes with Drone Rule 2021 is the leniency of preapprovals needed for drone operations in a previously very strict environment.

An interesting caveat of Drone Rule 2021 is that individuals and companies seeking registration will be given preferential treatment if using drones manufactured in India. As the global drone industry continues to gain momentum, India is keen to keep the revenue within its borders. This concept was further solidified on Wednesday, September 15, 2021, with the Indian government announcing a new Production Linked Incentive (PLI) scheme centering on the country’s automotive and drone industry.

With a ₹26,058 crore investment, Union Minister Anurag Thakur is stepping up the encouragement of producing and buying Indian made technology that will be driving the future. Over the next 3 years, the ministry sees the PLI ready to invest additional funds, increase capital, and enable more than 10,000 employment opportunities. One of the keys to making the PLI a reality is the ministry’s commitment to making the production of Indian drones affordable. A statement announcing the PLI reads, “The Government has agreed to fix the minimum value addition norm at 40% of net sales for drones and drone components instead of 50%, another exceptional treatment given to the drone industry. This will allow widening the number of beneficiaries.”

As the second most populous nation in the world, programs like this PLI are critical for maintaining India’s forward moving economic stability. Jobs need to be created, and merchandise needs to be made in-house to support these jobs and the economy. Shreya Suri, a partner at Induslaw, a multi-specialty law firm that represents many technology industry businesses, is very pleased with the ministry’s recent announcement. “This decision is in line with the more relaxed policy outlook of the Government towards the drone industry, evident from the liberalized Drone Rules, 2021 that were notified recently,” she said. “With these financial incentives, along with the lesser compliance burden through the revised rules, the Government appears to be moving in an overall positive direction to make the drones industry more accessible for various use-cases, bring new technology and investments into India for manufacturing of drones, and allow India to become an export center for drones and drone-based technology globally.”

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