The Civil Aviation Ministry is planning to offer a major incentive package worth ?16’18 billion to strengthen India’s drone manufacturing sector and reduce dependence on Chinese imports. This initiative, tentatively named Mission Drone Shakti, aims to support domestic production and encourage innovation over five years.

Mission Drone Shakti is inspired by India’s Production-Linked Incentive (PLI) schemes, which cover 14 sectors, including electronics, textiles, automobiles, and pharmaceuticals. These schemes, with a total outlay of ?1.97 trillion, link incentives to measurable outcomes like domestic value addition and increased sales.

Out of the total allocation, around ?5’6 billion is expected to be set aside for research and development. The remaining ?10’12 billion will be used to support the manufacturing of key components such as propellers, motors, and airframes, as well as sales-based incentives.

A key part of the plan is to invest in research and development while also building local manufacturing capabilities. The scheme will support the production of critical drone components and promote wider adoption of drones across industries through sales incentives.

The government is expected to introduce the program in FY27, targeting private Indian companies. Once the details are finalised and approved by the Finance Ministry, the proposal will be sent to the Cabinet for final approval.

Companies will receive benefits based on the level of domestic value addition they achieve, with a minimum requirement likely to be set. The financial incentives will be directly linked to this value addition.