India as a drone manufacturing hub - Possibilities, Compliances and Challenges

India as a drone manufacturing hub - Possibilities, Compliances and Challenges. In the last one year, India has witnessed a 34% surge in the number of drone startups. Drones are everywhere around us - from being used to drop medicines to patients in remote areas (Medicines from the Sky project, Telangana) to being used for pesticide spraying (Kisan drones) and security systems. As the drone industry is slated to reach a turnover of over $120 billion by 2026, Compliance Calendar traces the novel journey of drone manufacturing and drone services in India. We also highlight compliance requirements and challenges for drone businesses in India.
Government initiatives for promoting Drones-based businesses in India
India has great potential to become a hub for drone manufacturing as well as drone services, given its vast talent pool, favourable government policies, and growing demand for unmanned aerial vehicles (UAVs) in various sectors such as agriculture, mining, surveillance, and logistics.
Here are a few notable announcements for promoting adoption of drones in India:

Drone Shakti scheme : Announced by the Finance Minister in 2022, under the Drone Shakti initiative, ‘Drones as a service’ startups are being encouraged, with drone related courses, state funding of drone training, setting up learning institutions and funding startups.

Kisan Drones - Drones for Agriculture : Drones have great utility in the agricultural sector, which contributes more than a quarter to the country’s GDP. From being used for spraying pesticides, insecticides and micronutrients to monitoring crop damage and assessing insurance claims, drones are gaining increasing application based utility in agriculture. The Directorate General of Civil Aviation (DGCA), the Ministry of Agriculture and the Central Insecticide Board and Registration Committee (CIBRC) have been working on fast tracking applications and adoption of drones in the sector.

Land monitoring: Under the SVAMITVA scheme, drones are being used for mapping properties and issuing error-free land record holdings. They are also being employed for surveillance over forests, wildlife, disasters and poaching.

PLI Scheme for Drones:

» In 2021, the Union Cabinet approved a production-linked incentive scheme for the drone industry in India worth 120 crores.
» It is a direct payment to subside manufacturing capabilities of the drone industry.
» It covers a wide variety of drone components, including airframe, propulsion systems, power, batteries, ground control and communications, spraying systems, trackers, sensors among others.
»This is poised to bring over 5000 crores in investments and lead to incremental production worth1500 crores.

Setting up of Drone Corridors and Drone Promotion Council: These are dedicated spaces for promotion of drone manufacturing and operational services, being carried out under the new Drone Rules, 2021.

National Drones Policy, 2021 and the Drone 2.0 Framework - What’s in it for drone manufacturers and drone service providers?

The government of India has launched several initiatives to promote the manufacturing of drones in the country, such as the 'Make in India' campaign and the National Drones Policy 2021, which aims to promote the development of a robust drone ecosystem in the country.

A task force has recommended Drone Policy 2.0 to provide regulatory architecture for autonomous flying, deliveries via drones and long distance drone flights.

The policy includes provisions for certification, regulation, and operation of drones, which will help in creating a conducive environment for drone manufacturing and innovation.

Compliances for drone sector - A general guide for drone services
In India, to operate a drone legally, it is mandatory to obtain a drone licence from the Directorate General of Civil Aviation (DGCA) and comply with certain regulations. Through the Drone Rules, 2021, the government has made compliances for the drone sector easier.
The compliances required for obtaining a drone licence as well as drone operations include:

Registration: The drone must be registered with the DGCA through the Digital Sky Platform, which is a business friendly online platform for drone operators and manufacturers to register their drones and obtain a ‘Unique Identification Number’.

Coverage: The new Drone Rules, 2021 apply to drones weighing upto 500 kilograms.

Pilot licence: There is exemption from pilot licence for micro drones (for non commercial use), nano drones (weighing less than 250 grams) and research drones.

Pilot training: The drone operator must complete a training program approved by the DGCA and obtain a Remote Pilot License (RPL) or Remote Pilot Certificate (RPC) to operate the drone.

Certificate of Airworthiness: has to be obtained from the Quality Council of India. However, there is no requirement of certificate of airworthiness, prior permission etc for R&D entities.

Security clearance: In certain cases, the drone operators and manufacturers must obtain security clearance from the Ministry of Home Affairs (MHA) before applying for a drone licence.

Insurance: The drone operator must obtain third-party liability insurance for any damages that may be caused by the drone during its operation.

Compliance with airspace restrictions: The drone must comply with the airspace restrictions, including no-fly zones, altitude restrictions, and flight paths designated by the DGCA.

Permission for each flight: The drone operator must obtain permission from the DGCA for each flight operation, specifying the time, date, and location of the flight. No flight permission is required upto 400 feet in green zones and upto 200 feet in areas between 8 and 12 km from the airport perimeter.

Compliance with privacy regulations: The drone operator must comply with privacy regulations and ensure that the drone does not infringe on the privacy of individuals or violate any other laws.

Penalties under Drone Rules, 2021: Maximum penalty applicable for violation of Drone Rules, 2021 has been brought down to 1 lac.

Why is India uniquely poised to make Drones a $120 billion industry

India has a strong network of engineering colleges and research institutions that can provide skilled talent and resources for the development of drone technology.

We have dedicated drone research and development centres such as the Centre for Aerospace Research at the Indian Institute of Technology (IIT) Bombay.

Several Indian startups such as IdeaForge, Aarav Unmanned Systems, and Skylark Drones have already made their mark in the drone industry, both domestically and globally.

The demand for drones in various sectors is expected to grow rapidly in the coming years, and India can capitalise on this opportunity to become a significant player in the drone manufacturing market.

Overall, India has all the necessary resources and potential to become a hub for drone manufacturing, and with the right policies and investments, the country can emerge as a global leader in the UAV industry.
Challenges for the drone industry

Regulatory environment is still evolving: The National Drones Policy 2021 is a step in the right direction, but its implementation and enforcement along with circulars from DGCA and other authorities is still nascent and yet to be streamlined to encourage innovation and investment in the sector.

Infrastructure: The lack of adequate infrastructure, such as testing facilities and dedicated airspaces for drone operations, can hinder the growth of the drone industry in India.

Funding and investment: The drone industry requires significant investments in research and development, testing, and manufacturing facilities. However, the availability of funding and investment in India is still limited compared to other countries like China and the United States.

Competition from China and US:

As leaders in drone development, China and the U.S. have a head start in terms of technology and market share, and India needs to develop a competitive edge to establish itself as a significant player in the drone manufacturing market.
The DGCA, Ministry Civil Aviation and regulatory bodies continue to outline detailed guidelines for drone operations in India. With our team of business and technology experts, Compliance Calendar ensures that drone operators stay updated with any changes in regulations to ensure compliance. Our last-mile approach effortlessly gets you all filings, DGCA and other business compliances in place.

In the last one year, India has witnessed a 34% surge in the number of drone startups. Drones are everywhere around us - from being used to drop medicines to patients in remote areas (Medicines from the Sky project, Telangana) to being used for pesticide spraying (Kisan drones) and security systems. As the drone industry is slated to reach a turnover of over $120 billion by 2026, Compliance Calendar traces the novel journey of drone manufacturing and drone services in India. We also highlight compliance requirements and challenges for drone businesses in India.

Government initiatives for promoting Drones-based businesses in India

India has great potential to become a hub for drone manufacturing as well as drone services, given its vast talent pool, favourable government policies, and growing demand for unmanned aerial vehicles (UAVs) in various sectors such as agriculture, mining, surveillance, and logistics.

Here are a few notable announcements for promoting adoption of drones in India:

Drone Shakti scheme : Announced by the Finance Minister in 2022, under the Drone Shakti initiative, ‘Drones as a service’ startups are being encouraged, with drone related courses, state funding of drone training, setting up learning institutions and funding startups.

Kisan Drones - Drones for Agriculture : Drones have great utility in the agricultural sector, which contributes more than a quarter to the country’s GDP. From being used for spraying pesticides, insecticides and micronutrients to monitoring crop damage and assessing insurance claims, drones are gaining increasing application based utility in agriculture. The Directorate General of Civil Aviation (DGCA), the Ministry of Agriculture and the Central Insecticide Board and Registration Committee (CIBRC) have been working on fast tracking applications and adoption of drones in the sector.

Land monitoring: Under the SVAMITVA scheme, drones are being used for mapping properties and issuing error-free land record holdings. They are also being employed for surveillance over forests, wildlife, disasters and poaching.
PLI Scheme for Drones:

» In 2021, the Union Cabinet approved a production-linked incentive scheme for the drone industry in India worth 120 crores.

» It is a direct payment to subside manufacturing capabilities of the drone industry.

» It covers a wide variety of drone components, including airframe, propulsion systems, power, batteries, ground control and communications, spraying systems, trackers, sensors among others.

»This is poised to bring over 5000 crores in investments and lead to incremental production worth1500 crores.

Setting up of Drone Corridors and Drone Promotion Council: These are dedicated spaces for promotion of drone manufacturing and operational services, being carried out under the new Drone Rules, 2021.

National Drones Policy, 2021 and the Drone 2.0 Framework - What’s in it for drone manufacturers and drone service providers?

The government of India has launched several initiatives to promote the manufacturing of drones in the country, such as the 'Make in India' campaign and the National Drones Policy 2021, which aims to promote the development of a robust drone ecosystem in the country.

A task force has recommended Drone Policy 2.0 to provide regulatory architecture for autonomous flying, deliveries via drones and long distance drone flights.
The policy includes provisions for certification, regulation, and operation of drones, which will help in creating a conducive environment for drone manufacturing and innovation.

Compliances for drone sector - A general guide for drone services

In India, to operate a drone legally, it is mandatory to obtain a drone licence from the Directorate General of Civil Aviation (DGCA) and comply with certain regulations. Through the Drone Rules, 2021, the government has made compliances for the drone sector easier.

The compliances required for obtaining a drone licence as well as drone operations include:

Registration: The drone must be registered with the DGCA through the Digital Sky Platform, which is a business friendly online platform for drone operators and manufacturers to register their drones and obtain a ‘Unique Identification Number’.

Coverage: The new Drone Rules, 2021 apply to drones weighing upto 500 kilograms.

Pilot licence: There is exemption from pilot licence for micro drones (for non commercial use), nano drones (weighing less than 250 grams) and research drones.

Pilot training: The drone operator must complete a training program approved by the DGCA and obtain a Remote Pilot License (RPL) or Remote Pilot Certificate (RPC) to operate the drone.

Certificate of Airworthiness: has to be obtained from the Quality Council of India. However, there is no requirement of certificate of airworthiness, prior permission etc for R&D entities.

Security clearance: In certain cases, the drone operators and manufacturers must obtain security clearance from the Ministry of Home Affairs (MHA) before applying for a drone licence.

Insurance: The drone operator must obtain third-party liability insurance for any damages that may be caused by the drone during its operation.

Compliance with airspace restrictions: The drone must comply with the airspace restrictions, including no-fly zones, altitude restrictions, and flight paths designated by the DGCA.

Permission for each flight: The drone operator must obtain permission from the DGCA for each flight operation, specifying the time, date, and location of the flight. No flight permission is required upto 400 feet in green zones and upto 200 feet in areas between 8 and 12 km from the airport perimeter.

Compliance with privacy regulations: The drone operator must comply with privacy regulations and ensure that the drone does not infringe on the privacy of individuals or violate any other laws.
Penalties under Drone Rules, 2021: Maximum penalty applicable for violation of Drone Rules, 2021 has been brought down to 1 lac.

Why is India uniquely poised to make Drones a $120 billion industry

India has a strong network of engineering colleges and research institutions that can provide skilled talent and resources for the development of drone technology.

We have dedicated drone research and development centres such as the Centre for Aerospace Research at the Indian Institute of Technology (IIT) Bombay.

Several Indian startups such as IdeaForge, Aarav Unmanned Systems, and Skylark Drones have already made their mark in the drone industry, both domestically and globally.
The demand for drones in various sectors is expected to grow rapidly in the coming years, and India can capitalise on this opportunity to become a significant player in the drone manufacturing market.

Challenges for the drone industry

Regulatory environment is still evolving: The National Drones Policy 2021 is a step in the right direction, but its implementation and enforcement along with circulars from DGCA and other authorities is still nascent and yet to be streamlined to encourage innovation and investment in the sector.

Infrastructure: The lack of adequate infrastructure, such as testing facilities and dedicated airspaces for drone operations, can hinder the growth of the drone industry in India.
Funding and investment: The drone industry requires significant investments in research and development, testing, and manufacturing facilities. However, the availability of funding and investment in India is still limited compared to other countries like China and the United States.
Competition from China and US:

The DGCA, Ministry Civil Aviation and regulatory bodies continue to outline detailed guidelines for drone operations in India. With our team of business and technology experts, Compliance Calendar ensures that drone operators stay updated with any changes in regulations to ensure compliance. Our last-mile approach effortlessly gets you all filings, DGCA and other business compliances in place.