India Boosts Drone Industry with $234 Million Strategic Incentive
India has approved a $234 million incentive program to strengthen its domestic drone manufacturing sector in response to escalating regional tensions and the growing strategic role of unmanned systems. The initiative, which spans civil and military applications, aims to reduce the country’s reliance on imported components and foster a competitive national ecosystem capable of supporting defense autonomy and industrial resilience.
The decision follows the extensive use of drones during a recent cross-border clash with Pakistan, which highlighted the operational importance of loitering munitions, kamikaze drones, and surveillance platforms. The scheme will fund the production of complete systems, critical subsystems, software, and counter-drone technologies. It also includes targeted incentives for companies sourcing components domestically.
India’s drone sector has expanded rapidly in recent years, but remains dependent on imports for high-value technologies such as sensors and propulsion systems. The new program aims to reverse this trend by supporting local capacity-building. Low-interest loans, R&D grants, and state-backed procurement contracts are expected to complement the financial package.
Over 600 firms currently operate in India’s drone supply chain. Government officials intend to raise the share of indigenously produced components to at least 40 percent by 2028. The broader objective is to transform India into a regional leader in autonomous systems, capable of addressing both defense requirements and export opportunities in an increasingly contested technological landscape.