India's drone industry assures economic growth, technological innovation and a major leap towards self-reliance

Similarly, law enforcement agencies in India like the police and special forces are leveraging drones for various purposes. These include monitoring traffic, tracking suspects, and keeping a watchful eye on areas with high crime rates

The Indian drone market is projected to grow from $ 654 million in 2024 to $ 1,437 million by 2029 at a CAGR of 17.0% during the forecast period. The country’s drone industry is experiencing rapid growth, driven by increasing demand across various sectors, including agriculture, defence and e-commerce.

Its market is projected to generate revenue of $27.0m in 2024 at an annual growth rate of 5.78 per cent (CAGR 2024-2029).

In relation to the total population, the per person revenue in the drones market is estimated to be $0.02 this year. Looking ahead, the volume of the market is projected to reach 79.6k pieces units by 2029. Furthermore, there is an expected volume growth of 6.6 per cent in 2025.

Interestingly, the average volume per person is anticipated to be 0.0pieces units in 2024. India is experiencing a surge in the adoption of drones for agricultural purposes, revolutionizing farming practices in the country.

In the present day, unmanned aerial vehicles (UAVs) have undergone significant evolution. As per an EY and FICCI report, India’s drone industry is expected to grow from a value of ₹2,900 crore in 2020, to ₹81,600 crore in 2025. It is expected to reach ₹2.95 lakh crore by 2030!

The drone industry is expected to grow at a rate of 80 per cent from 2020 to 2025, followed by a CAGR of 35 per cent from 2025 to 2030.

It is a sunrise sector in India with the potential to significantly impact defence, surveillance, internal security, disaster management, agriculture, healthcare, geo-spatial mapping, mining, infrastructure, and aerial photography and cinematography, among areas.

Drones are considered the best when it comes to data gathering and surveillance across borders. They can be deployed kilometers away from where they provide real-time updates. Drones with artificial intelligence also communicate continuously and provide information on any threat/movement around borders.

Farmers might sound like an unfamiliar combination, but drone technology has significantly impacted agriculture, bringing about advancements in farming. Drones quickly check crops for things like pests and weather effects, helping farmers give the right fertilizers on time. They can treat an acre in less than eight minutes, while manual spraying requires a minimum of four hours to cover the same area.

It's also being used in media and entertainment sector. Film directors are increasingly relying on drones to capture aerial shots for specific scenes, a task that traditionally necessitated the use of helicopters, leading to a reduction in operating costs. Aerial photography, involving the capture of images from elevated vantage points, has also gained popularity.

Drones were used in the making of some landmark movies like The Wolf of Wall Street, Jurassic World, and Skyfall.

Worldwide, police departments and public safety agencies are utilizing drones to enhance situational awareness, locate missing individuals or suspects, combat fires, and inspect damage or accidents. Similarly, law enforcement agencies in India like the police and special forces are leveraging drones for various purposes. These include monitoring traffic, tracking suspects, and keeping a watchful eye on areas with high crime rates.

In fact, as per an EY and FICCI report, India has a potential to achieve 60 per cent indigenization of drones by 2030. Moreover, the country is expected to export drones worth ₹47,000 crore by the same time period.

In 2022, the government imposed restrictions on imported drones, limiting their usage to research and development, defence and security. To support assemblers and manufacturers, the Union government facilitated duty-free import of drone components. This move benefits local manufacturers heavily reliant on imported parts such as diodes, chips, motors and lithium-ion batteries for assembling their drones.

This move benefits local manufacturers heavily reliant on imported parts such as diodes, chips, motors, lithium-ion batteries, and more for assembling their drones.

Meanwhile, Hindustan Aeronautics (HAL) is also taking the industry by storm. Last year, it tied up with Garuda Aerospace to manufacture advanced precision drones. And as part of the partnership, 5000 drones are planned in the first year.

Startups are also becoming a huge part of the growth story. In FY 2022-23, the drone startups accumulated around $49.7 million as funding – in just 20 rounds. Compare this with FY 2021-22’s $25.6 million across 23 rounds, and FY 2020-21’s $11.2 million across 20 rounds!

As drones become integral to diverse sectors, from agriculture to public safety, and with a robust ecosystem in place, the future of India's drone industry looks promising, offering economic growth, technological innovation, and a substantial leap towards self-reliance in this emerging field.