India proposes $230 million drone incentive in response to conflict with Pakistan
The Indian government has announced a significant three-year, ₹20 billion (approximately $234 million) incentive program to boost domestic drone manufacturing and reduce reliance on imported components. This initiative is a response to Pakistan's advancements in drone technology, which have been supported by China and Turkey.
The program covers the manufacture of drones, subsystems, critical components, software, anti-drone technologies, and drone services. It includes low-interest working capital and R&D loans through the Small Industries Development Bank of India to support startups and manufacturers. The goal is to achieve 40% indigenization of critical components like motors, sensors, and imaging systems by the end of fiscal year 2028.
The program aims to enhance self-reliance in drone technology, support over 600 drone startups, and promote local manufacturing capabilities. It also seeks to strengthen civil and military drone production for security and surveillance needs.
The initiative is expected to provide significant financial support to startups, helping them overcome funding challenges faced under previous schemes. By promoting local manufacturing, India aims to enhance competitiveness in the global drone market. The program aligns with India's strategic objectives to build a resilient and independent unmanned aerial ecosystem.
The Indian Defense Secretary, Rajesh Kumar Singh, stated that India needs to double down on indigenization efforts to build a strong military drone manufacturing ecosystem. The incentive program is aimed at reducing India's reliance on imported components, particularly those from Israel and China.
This move follows a notable escalation in drone tensions with Pakistan, marking a shift towards building domestic capabilities to counter regional adversaries. The planned expenditure for the program is higher than a previous $1.2 billion production-linked incentive scheme. The details of the program have not been previously reported.
India and Pakistan are currently engaged in a drones arms race, with India primarily importing military drones from Israel in the past, but its reliance on China continues for certain components such as motors, sensors, and imaging systems. The government plans to offer additional incentives to manufacturers that procure parts from within the country.
The Indian government did not immediately respond to emails seeking comment on the matter. Despite this, the launch of the incentive program signifies a commitment to strengthening India's domestic drone manufacturing industry and asserting its strategic autonomy in the field of unmanned aerial vehicles.
The Indian government's incentive program extends to the production of drone technology news, aiming to boost local manufacturing in the east and enhance India's competitiveness in the global art market. This new addition to the country's strategic objectives also seeks to promote self-reliance in sports like surveillance and security, as well as in the production of anti-drone technologies.
