Budget 2024: Expectations For The Drone Sector

The Indian drone sector has witnessed rapid growth in recent years, and the Interim Budget 2024 has raised expectations for policy measures and fiscal incentives to further support and boost this industry.

Drones have the potential to revolutionise various sectors, such as agriculture, logistics and surveillance, among others. If India hopes to be the global drone hub by 2030, it is crucial for the government to introduce measures that promote the adoption and development of drone technology, for which this budget can serve as a springboard.

One of the industry's expectations is the formulation of a comprehensive policy for the drone segment. The industry is looking to the government to streamline and ease regulations and restrictions, which can enable businesses to leverage drone technology effectively.

Issues such as licencing, training requirements, airspace regulations and privacy concerns need to be addressed. By providing a conducive ecosystem, the government can encourage more players to enter the drone market and drive innovation.

Ankit Mehta, CEO of drone manufacturing company ideaForge, said, “Our expectations for the upcoming Budget 2024–25 are centred around policy measures and fiscal incentives to establish India as a global drone hub by 2030. The foundation laid by the existing drone rules and production-linked incentive scheme is promising, and we look forward to further enhancements in regulatory frameworks and their execution to fuel innovation and industry growth.”

Drone tech startups are looking for faster approvals, especially in the urban air mobility space. In the agriculture sector, industry experts indicate that drone utilisation could rise with a reduction in interest rates for drone loans and lower GST rates. Drone technology companies focusing on defence are hoping for increased budget allocation for the creation and use of advanced drones, such as unmanned aerial vehicles and unmanned ground vehicles.

“We hope to see the government's commitment to nurturing this budding drone industry, as drones are anticipated to play a vital role in facilitating security and governance infrastructure,” Mehta said.

Another expectation is that fiscal incentives will support research and development in the drone segment. R&D is critical for the advancement of any industry, and drones are no exception. Fiscal allocation and incentives can be used to support research institutions, startups and companies working on developing new capabilities and applications for drones.

The continued support for research and development, along with incentives for technological collaborations, will be instrumental in propelling India's drone manufacturing capabilities to new heights, according to Mehta, 

Additionally, tax incentives or grants can be provided to businesses that invest in R&D activities. This will not only encourage innovation but also attract foreign investment in this sector.

“As we envision the transformative potential of Union Budget 2024, we see it as a catalyst for India's drone sector, propelling us to a prominent position on the global stage. The upcoming budget has the power to shape an environment conducive to innovation, growth and international prominence in the dynamic field of drone technology,” Mehta said.