Centre Launches PLI Scheme For Drone Industry; Read On

The production-linked incentive (PLI) scheme for the drone industry was notified by the Ministry of civil aviation in September 2021. Under this scheme, manufacturers of drones and drone components are going to be given an incentive of 20% of the worth addition made by them during the following three years.

Modi Govt approves PLI scheme for Drones and Drone Components; Check key features - The Financial Express

The value addition is going to be calculated because of the annual sales revenue from drones and drone components (net of GST) minus their purchase cost (net of GST). Also, there must be a minimum value addition of 40% of income for drones and drone components.

Government will give incentives to companies making drones and its parts, PLI scheme of Rs 120 crore announced
Under the schemes, the entire incentive provided is Rs 120 crore touch three financial years.


With the assistance of the PLI scheme, it’s expected that by 2026 the Indian drone industry will have a complete turnover of up to Rs 15,000 crore.
Invitation for applications
On 11th March 2022, the Ministry of civil aviation ministry invited applications from the eligible drone manufacturers for the PLI scheme. the appliance form is one page and it requires a certificate from the top of the organization and also the statutory auditor. March 31st, 2022 is the deadline for submission of the appliance form.

Drone manufacturers to get incentives from Indian government based on production

Ban on import of foreign drones
On February 10th, 2022, the govt banned the import of foreign drones to market their domestic manufacturing. However, there are certain exemptions. With due clearance, drones are often imported for R&D, defence, and security purposes.