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NASSCOM Report on “Enabling India’s Drone Ecosystem – Policy Suggestions”
NASSCOM Report on “Enabling India’s Drone Ecosystem – Policy Suggestions”

November 21, 2022

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With the aim of making India a drone hub by 2030 and a $30 billion industry, the Government of India has taken several steps to promote India’s budding drone industry. These include the liberalised Drone Rules, 2021, rationalised norms for drone pilot, establishment of drone schools, and the Product Linked Incentive (PLI) scheme launched in 2021 to boost manufacturing in the drone industry. The above steps open up possibilities for various use-cases such as drone deliveries (including that of essentials items, such as medicines, blood, and transplant organs), land mapping for surveys, agricultural purposes, mining, surveillance, defence amongst others. Given the accelerated growth of the drone ecosystem and the policy impetus, it is important to continuously identify and address the regulatory and policy challenges that the ecosystem participants may face.

The report highlights some of these challenges being faced by the industry. It explains the skill and talent related challenges, issues with respect to the research and development related exemptions for private entities, import concerns vis-à-vis the SCOMET categorisation, the challenges faced in the government procurement process, and gaps which make it difficult to avail benefit of existing government schemes for start-ups and Small and Medium Enterprises (SMEs). The report proposes possible solutions that the Government may consider.

In the above context, the report makes the following key recommendations:

  1. The focus should be to attract talent in the drone ecosystem through educational and awareness related efforts.
  2. A standard operating procedure should be published for law enforcement agencies to classify a zone as a red zone.
  3. Allow private entities to import drones for R&D purposes.
  4. Quality based criteria for drone procurement by government should be considered.
  5. Payment cycles and credit from banks for early stage drone start-ups should be enabled.
  6. The SCOMET compliance burden for the drone industry should be reduced by harmonising category 5B with MTCR.

The Report has been attached below.

In case you have any feedback or are interested in discussing India’s drone ecosystem with us, please write to policy@nasscom.in.


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Download Attachment

Drone Report Final.pdf

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Apurva Singh
Senior Policy Associate

Write to me for all things related to FinTech, Drones, Data and Gaming

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