Govt for Sidbi’s lending support to drone push
Central government keen to ensure that MSMEs and startups in the sector don’t suffer from the shortage of credit
image for illustrative purpose
Tech Shield For Farmers:
- Farmers suffer from erratic weather patterns
- Need of technical knowhow in drone industry to shield farmers
- It’ll help farmers grow more produce of improved quality
- Sidbi may extend indirect lending
New Delhi: The central government is exploring the option of roping in the Small Industries Development Bank of India (Sidbi) for financial support and handholding the entire drone ecosystem.
Since the use of drones is increasing rapidly in rural areas and a large number of startups are important stakeholders, financial support is essential for the growth of the drone ecosystem, official sources told Bizz Buzz. Drones are already contributing to the cooperative sector, self-help groups (SHGs), and farmers’ producer organizations (FPOs). Mostly, it is used as a shared facility with the help of agri-infra funds, they added.
Technical knowhow is urgently needed in the drone industry to shield farmers from the erratic weather patterns. This, the sources said, will help farmers grow more produce of improved quality.
Production-Linked Incentive (PLI) Scheme for drones and drone components will galvanize the sector, they said, adding that the government is keen to ensure that micro, small and medium enterprises (MSMEs) and startups in the sector don’t suffer from the shortage of credit.
This is the reason that the government is contemplating to engage Sidbi for the promotion of the sector. Sidbi executes its mandate through indirect lending, which is based on the multiplier effect. It is undertaken through banks, NBFCs, MFIs, new age fintechs, etc.
The bank also does direct lending to fill the existing credit gaps in the MSME sector. It is undertaken through demonstrative and innovative lending products, which can be further scaled up by the credit delivery ecosystem. So, the drone sector can be the beneficiary of direct lending.
In 2021, the drone service market in India was valued at $183 million, according to Statistica. It is expected to reach over $4 billion in 2030, growing at a compound annual growth rate or CAGR of 44 per cent. Drone platform service segment accounted for the major share of the services market.
