Budget 2025 Expectations Live: Potential to accelerate India’s drone sector

“Union Budget 2025 holds the potential to accelerate India’s drone sector toward global leadership. With the market poised to generate significant economic value and employment opportunities, strategic government support can further enhance growth. Building on the ₹57 crore allocated under the PLI scheme in 2024, increasing this to ₹100-120 crore will boost indigenous production and innovation, particularly in defense, surveillance, and logistics.

Logistics drones play a critical role in ensuring rapid payload delivery and precise logistical support in routine and hostile environments, revolutionizing supply chains across healthcare, disaster relief, and defense. Armed UAVs, or attack drones, ensure precision strikes on high-value targets, reducing collateral damage, minimizing personnel risks, and maintaining operational secrecy.

To foster advanced drone technologies, a dedicated ₹300 crore R&D fund is recommended to focus on AI-enabled and dual-use drones, driving breakthroughs in autonomous navigation GPS denied and operational efficiency. Simplifying regulations, especially for BVLOS (Beyond Visual Line of Sight) operations, will further enable widespread adoption across industries.

For self-reliance and global competitiveness, introducing tax incentives and custom duty waivers on critical components is essential. Additionally, a proposed ₹2,000-3,000 crore allocation for defense procurement will facilitate large-scale drone deployment for border surveillance, logistics, and national security.

These measures, along with a focus on innovation, manufacturing, and streamlined regulations, can position India as a global drone hub by 2030, creating a robust ecosystem for economic growth and international expansion,” says Arpan Ghosh, Founder & Director at Gamma Rotors Pvt. Ltd.