Indian Govt. to launch an INR 2,000 Cr incentive Programme to boost drone manufacturing , aiming for 40% localization by FY28

The Indian government is planning to launch a ₹2,000 crore ($234 million) incentive scheme to support drone manufacturing in the country. The scheme will run for three years and
cover everything from drone hardware and parts to software, anti-drone systems, and related services.

This plan, led by the Ministry of Civil Aviation, is aimed at reducing India’s reliance on imported drone components especially as neighbouring countries like Pakistan, with support from China and Turkey, are strengthening their drone programs. The government wants at least 40% of key drone parts to be made in India by 2027-28. What’s great for startups is that the scheme will offer extra benefits to those using locally sourced parts. Also, SIDBI (Small Industries Development Bank of India) will provide affordable loans for working capital and R&D needs.

This is a strong push for India’s drone startup ecosystem. Whether it’s agri-tech, defence, logistics, or surveillance, there’s a huge opportunity to build and innovate. Founders working in this space can now access funding, easier credit, and a growing local supply chain giving them the perfect runway to scale.


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