Indian Drone Manufacturing Industry & Opportunities for MSMEs

Drone Manufacturing Industry

Drones are quite popular in many of the developed countries and are being used across various industries complementing the human workforce. However, the usage of the drones is still in the nascent stage in India. Having said that, the drone industry in India is picking pace with the boost from government initiatives.

In order to enhance the prospects of the drone industry in India, the Government of India recently announced the PLI scheme for drones and drone components manufacturing. Under the scheme, the government sanctioned an amount of Rs. 120 crores to be provided as incentives to the drone and drone component manufacturers. As per the government, the PLI scheme would help to attract around Rs. 5,000 crores in the next three years and generate more than 10,000 employment opportunities in the drone industry across the value chain.   

New Drone Rules for Liberalization of Drone Industry

Prior to the announcement of the PLI scheme, the government had earlier announced new regulations in the month of August 2021, that would help to ease the usage of drones for both commercial and non-commercial purposes in India. As per the new rules, pilot licence is not required for operating nano and micro drones for non-commercial purposes. The government also increased the payload limit of the drones from 300 kilograms to 500 kilograms. The new drone rules are expected to increase drone usage and promote the growth of the drone industry in India. Following the liberalized drone rules and the PLI scheme, the government expects the drone industry to have a turnover of Rs. 15,000 crores by 2026.  

Drone Manufacturing

Opportunities for MSMEs

MSMEs are integral and inalienable part of every industry, including drones. The small and medium scale enterprises provide components to OEMs and top tier manufacturers and play a crucial role in ensuring the continuity of the supply chain. The recently announced PLI scheme will attract huge investments into the sector and would provide numerous business opportunities to MSMEs in the country. The government also announced provisions for the MSMEs unlike in the case of the PLI scheme for the other sectors. Under the drone manufacturing, MSMEs with an annual turnover of Rs. 2 crores and drone component manufacturing MSMEs with an annual turnover of Rs. 50 lakhs will be eligible for incentives.       

Drone Applications Across Different Areas

Even though the drones are largely confined to a few sectors like defence in India, the usage of drones is expected to increase manifold in different sectors. Moving forward, drones would find applications across various sectors including agriculture, real estate, video and photography, e-commerce, disaster management, law enforcement, mining, aerospace and defence, surveying, etc. This is would eventually increase business opportunities for both large and small businesses in drone manufacturing.

Register Now

If you are MSME planning to foray into drone or drone component manufacturing, then kindly register with SolutionBuggy. We provide you access to trusted and verified manufacturing who can assist you in starting drone manufacturing business or drone component manufacturing business.


With the government pushing for drone manufacturing in India, the future of the industry looks quite optimistic.

Drone manufacturing offers numerous business opportunities for MSMEs across the value chain. MSMEs majorly act as component suppliers to OEMs.

Accordion Content

The investment required to start drone manufacturing business ranges from Rs. 5 crores to Rs. 15 crores. However, drone component manufacturing can be started with a lesser budget.  

Today, drones are employed across various industries including but not limited to agriculture, real estate, video and photography, ecommerce, disaster management, law enforcement, mining, surveying, etc.   

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