In a move to promote the export of high-tech items, the Indian government has relaxed norms for the outbound shipment of certain drones intended for civilian use. Under the new regulations, the export of specific drone specifications will be permitted under the General Authorization for Export of Drones (GAED), a one-time license valid for three years.
According to the Directorate General of Foreign Trade, drones or unmanned aerial vehicles (UAVs) not covered under the specified categories in the SCOMET list, capable of a range equal to or less than 25 km and payload delivery of up to 25 kg (excluding software and technology), and meant exclusively for civilian end-use, will now be subject to GAED.
Previously, all categories of drones were regulated for export under the SCOMET list, which imposes restrictions on items with dual-use potential for both civilian and military purposes.
With this relaxation, the Indian government aims to enable domestic drone manufacturers to compete globally and expand their operations at an international level. It eliminates the requirement for drone manufacturers to apply for an SCOMET license for each export shipment of drones for civilian purposes during the license’s validity period.
India has seen a significant surge in the number of drone and UAV startups, with a 34.4% increase from August 2021 to February 2022, growing from 157 to 221 startups in this sector. The Indian government, including Civil Aviation Minister Jyotiraditya Scindia, has expressed the country’s potential to become the global hub for drones by 2030.
To support the growth of the drone industry, the civil aviation ministry introduced the Production Linked Incentive (PLI) scheme for drones and drone components. The scheme offers a total incentive of INR 120 crore spread over three financial years, with a 20% rate of PLI based on value addition, one of the highest rates among other PLI schemes.
Several drone startups in India, including Aarav Unmanned Systems, DroneAcharya Aerial, and EndureAir Systems, have recently raised approximately $54 million in funding. Additionally, DronAcharya has gone public, and ideaForge, another drone startup, is preparing to list. These developments highlight the growing potential and investor interest in the Indian drone industry.
