India Unveils ₹1,800 Crore ‘Mission Drone Shakti’ to Boost Local Drone Manufacturing

India Unveils ₹1,800 Crore ‘Mission Drone Shakti’ to Boost Local Drone Manufacturing

India is planning a ₹1,800 crore incentive scheme, tentatively called Mission Drone Shakti, to strengthen domestic drone manufacturing and cut reliance on Chinese components. The initiative, proposed by the Civil Aviation Ministry, targets private Indian companies and is expected to roll out in fiscal year 2027.

The scheme aims to promote research and development, manufacturing, and sales of drones, critical components, software, and counter-drone systems. Officials say it seeks to achieve 40% localization of key drone components by FY28, signaling a major push toward self-reliance in the sector.

Read also: 5 High Growth Drone Stocks in India for Long-Term Investors

With a total outlay of ₹1,600–1,800 crore over five years, Mission Drone Shakti is designed to complement earlier efforts, including the ₹120 crore Production-Linked Incentive (PLI) scheme launched in 2021. The proposal also includes access to low-interest loans from the Small Industries Development Bank of India (SIDBI) to support working capital requirements for manufacturers.

Analysts note that the move could accelerate India’s emergence as a global drone manufacturing hub. By reducing dependency on imports, particularly from China, the government aims to strengthen the supply chain for both civilian and defense applications. The scheme is expected to encourage private firms to invest in advanced drone technologies, software development, and allied services, boosting domestic capabilities and employment in the high-tech sector.

Industry experts believe Mission Drone Shakti could significantly enhance India’s competitiveness in the global drone market, while also supporting the broader “Make in India” vision for strategic and commercial technologies.