India's drone industry has recorded a 66-fold surge in revenue — from ₹60 crore in 2021 to ₹4,000 crore in 2025 — driven by the government's indigenisation push under the Drone Rules 2021 and the Production-Linked Incentive (PLI) scheme, according to Smit Shah, President of the Drone Federation of India. Shah made the remarks on 25 September 2026, as Make in India completed 12 years since its launch on 25 September 2014.

Key Policy Drivers Behind the Growth

Shah credited three structural shifts for the sector's transformation: the liberalisation of drone regulation through the Drone Rules 2021, financial incentives via the PLI scheme, and a ban on imports of foreign drones that channelled demand toward domestic manufacturers. 'The biggest game changer was the combination of the Drone Policy of 2021, the PLI scheme and the import ban, all centred around the Make in India vision,' Shah said.

This policy combination, he argued, created a self-reinforcing ecosystem — reduced compliance burden attracted investment, PLI subsidised scale-up, and the import ban guaranteed market access for Indian producers. The result, he noted, is a sector that barely existed as a commercial force a decade ago.

Make in India's Role: 'The Entire Ecosystem Exists Because of It'

Addressing the 12th anniversary of Make in India, Shah thanked Prime Minister Narendra Modi for introducing the vision. 'Because of initiatives like Make in India, the entire drone ecosystem of the country today exists,' he said. The initiative, launched on 25 September 2014, was designed to attract investment, foster innovation, and position India as a global hub for manufacturing, design, and technology.

Shah pointed specifically to the initiative's 'Vocal for Local' framing as having shifted both government procurement preferences and private-sector confidence toward Indian-made drone platforms.

Drone Sector's Role in Operation Sindoor

Shah noted that the drone industry had 'robustly proven its capabilities' not only in the civilian space but also in the military domain, citing performance during Operation Sindoor as evidence. He did not elaborate on specific operational details, but the reference signals that domestic drone manufacturers have gained traction in defence procurement — a market that had historically favoured foreign suppliers.

What the Sector Could Look Like by 2030

Shah projected that the sector is on course to become a ₹19,000 crore to ₹20,000 crore industry in the coming years, representing a further four-to-five-fold expansion from current levels. This growth, he suggested, will be underpinned by expanding civilian applications — including agriculture, logistics, surveillance, and infrastructure inspection — alongside continued defence demand.

Notably, this trajectory places India among a small group of countries actively building an end-to-end domestic drone supply chain, at a time when the global drone market is increasingly shaped by geopolitical considerations around Chinese-manufactured hardware. With the policy architecture now in place, execution and talent pipeline will be the next tests for the sector's ambitions.