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Drone economy takes flight

GST reform to push India’s place in global ecosystem

by Blitz India Media
September 26, 2025
in Perspective
Drone
Blitz Bureau

NEW DELHI: DRONES have emerged as transformative tools across sectors like agriculture, defence, disaster management, and infrastructure development. Recognising their potential, the Government is intensifying efforts to integrate drone technology into national development strategies.

Initiatives such as ‘Namo Drone Didi’ scheme aim to empower women-led Self-Help Groups (SHGs) by providing drones for agricultural services, thereby enhancing productivity and creating livelihood opportunities. In the defence sector, the Army’s Terrier Cyber Quest 2025 focuses on leveraging emerging technologies, including drones, to address modern security challenges.

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GST reduction

Furthermore, the Government is facilitating the growth of the domestic drone industry by offering affordable certification services through the National Test House, supporting the ‘Make in India’ initiative. These concerted efforts underscore the Government’s commitment to harnessing drone technology for economic growth, national security, and social empowerment.

Working along the same lines, in the 56th meeting of the Goods and Services Tax (GST) Council recently, the GST on unmanned aircraft (drones) has been significantly reduced from the earlier 18 pc/2 8pc to a uniform 5 per cent rate.

This rationalisation aims to encourage wider adoption of drones across sectors while also boosting domestic manufacturing under the Make in India and Atmanirbhar Bharat initiatives. A uniform tax structure will end classification disputes, provide policy certainty, and offer a predictable environment for businesses investing in this emerging industry.

A uniform 5 per cent GST rate is applicable on all drones, irrespective of whether they are fitted with cameras or not. The step ensures parity and eliminates ambiguity in classification. It also brings an end to classification-related disputes, and provides long-term clarity and stability for the industry. Besides, it complements the Production Linked Incentive (PLI) scheme for drone manufacturing and components.

This reform is a decisive step towards strengthening India’s position in the global drone ecosystem. By ensuring affordability and promoting innovation, it is set to accelerate adoption across industries, generate employment, and contribute to India’s vision of becoming a global hub for advanced technologies.

Affordability, innovation

The Government has taken several steps to promote the drone industry, aiming to make India a global drone hub by 2030. Key measures include the liberalised Drone Rules, 2021, creation of the DigitalSky platform for online permissions, and the PLI Scheme for drones and components to boost domestic manufacturing.

Initiatives like Drone Shakti encourage Drone-as-a-Service startups, while training programmes through DGCAapproved institutes are building skilled manpower. Events such as the Bharat Drone Mahotsav further showcase indigenous innovations and strengthen the ecosystem.

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