India's Drone Market: India has the potential to become a Global Drone Hub by 2030

By GN Madhu and Ravi Karkara (Drone Enthusiasts and Advisors) MAD Times: Mad About Drones: MAD2023/1

Introduction: The increasing use of drones in various sectors has made India a hub for drone manufacturing. In recent years, the Indian government has taken steps towards legalizing drone usage and regulating it in order to ensure safety. According to PwC’s Global Consumer Insights Survey 2018, consumer interest in drones has grown steadily across markets like China, the US, and Japan. UAS are a critical piece of India’s national security infrastructure, and as the world’s largest democracy, India has an opportunity to develop a strong UAS industry. With the right policies and regulations, we can ensure that this emerging technology is used in ways that benefit all citizens of our country. This blog post outlines some of the key developments in the drone policy landscape in India over the past few years. In particular, we discussed how drone technology can be used for good purposes such as agriculture or disaster relief; how local lawmakers have been working on updating their respective laws to promote innovation; and finally how Garuda Aerospace is helping make drones more accessible through its Kisan units program.

?“Rs 80-crore fledgling drone industry in India spreads wings for Rs 15,000-crore long haul. Given the huge demand and market growth, the number of drone start-ups in the country jumped 34.4 percent between August 2021 and February 2022. India now boasts 220 drone startups. In its push for the?Make-in-India drive, the government is going all out to support domestic enterprises by tweaking its policies and regulations so that more and more products are manufactured within the country. One sector which is getting a lot of support and thrust from the government is the manufacturing of drones or unmanned aerial vehicles (UAV).” (See: https://www.moneycontrol.com/news/business/stocks/rs-80-crore-fledgling-drone-industry-in-india-spreads-wings-for-rs-15000-crore-long-haul-8746731.html)

India drone policy: “In July 2021, the Government of India released a?draft for the new set of drone laws . These draft laws have now become the official drone regulations in India. Released on 25th August 2021, the?Drone Rules 2021?will supersede the older?UAS Rules 2021 . The UAS Rules were criticized for their restrictive nature that made becoming a drone pilot, manufacturer, or importer a challenging task. After evaluating the feedback, the draft for the new drone laws was formulated.?These drone laws are more liberal and are built upon the premise of trust, self-certification, and non-intrusive monitoring. The number of application forms has been reduced from 25 to 6. There have been several new changes compared to the existing regulations” (Reference: https://blog.flykit.app/drone-regulations-in-india-2021-updated/ )

India drone market growth: The drone market in India is expected to grow from $1.9 billion in 2020 to $2.8 billion by 2022 and reach $4.5 billion by 2025, with a Compound Annual Growth Rate (CAGR) of 32%. It's expected that the market size will reach its peak in around 2030 before declining slowly over the next few years as regulations become stricter and manufacturers focus on niche markets due to limited demand for drones in India's economy. We also see a trend coming up in many sectors such as Mapping and surveillance. The govt is keen to digitize the lands banks, borders, and villages PAN India enabling many start-ups to participate in this massive project. Revenue in the Drones segment amounts to?US$19.93m in 2022. The market is expected to grow annually by 10.12% (CAGR 2022-2027)

• Revenue in the Drones segment amounts to US$23.62m in 2023. The market is expected to grow annually by 8.12% (CAGR 2023-2027).
• In global comparison, most revenue is generated in China (US$1,394.00m in 2023).
• In relation to total population figures, per-person revenues of US$0.02 are generated in 2023.
• In the Drones segment, volume is expected to amount to 0.1m pcs. by 2027. The Drones segment is expected to show a volume growth of 14.6% in 2024.
• The average volume per person in the Drones segment is expected to amount to 0.0 pieces in 2023.

India has the potential to become a global drone hub by 2030, according to Union civil aviation minister?Jyotiraditya Scindia.?

#KisanDrone is a technology adopted by the farmers?and by the agricultural sector which addresses the manpower shortage challenge along with the social factors of the farmers. Precision farming spraying techniques are used to ensure the yield of the crop increases thereby adding value to the farmer and the Agri ecosystem. Precision techniques help in reducing the usage of water, pesticides, time, and other components enabling the right product to be adopted for this new age era. PM Modi’s government has been pushing for greater private investments in the farm sector, contributing 21% to the country’s GDP. But farmers in several states have been protesting to demand a legal guarantee for minimum prices of their produce. The drone blitz is said to be, by far, the largest collective agricultural drone exercise in the country. The Prime Minister said new technologies would bring a “world of opportunities for farmers and youth”.

Modi’s government has been pushing for greater private investments in the farm sector, which contributes 21% to the country’s GDP.?Analysts say drones could prove transformative, making farming efficient, although the costs involved are still high. An agricultural drone typically operates using Internet-based smart technologies and can undertake precise farm operations, from spraying to monitoring crop health. They can cost anywhere between??1-10 lakh. A recent government incentive provides grants that make ownership of farm drones virtually cost-free for state-run institutions. (See: https://www.hindustantimes.com/india-news/pm-modi-launches-100-kisan-drones-in-unique-farm-blitz-101645271149549.html )

?#GarudaAerospace is a start-up in the drone industry that makes drones for agricultural use. The company was founded by an Indian young entrepreneur Agnishwar Jayaprakash , who wanted to create a better way of farming using drones. “ Agri drone” - a small?5 litre drone that can be used for crop monitoring and spraying pesticides. This product has since been redesigned updated several times, with new features like GPS tracking capabilities, Artificial intelligence added on top of its existing features like altitude control (to ensure accurate spraying), infrared vision camera system (for night vision), and so forth. Garuda Aerospace has now become one of India's most well-known brands in this space, thanks largely due to its innovative approach to solving problems faced by farmers across rural areas around the globe. Garuda Aerospace Private Limited

?“Promotion of drone technology is another medium of advancing our commitment to good governance and ease of living” PM Modi

(see: https://www.narendramodi.in/text-of-prime-minister-narendra-modi-s-address-at-inauguration-of-bharat-drone-mahotsav-at-pragati-maidan-delhi-562046 )