Drones have been used extensively since the covid-19 period, to deliver medicines, as surveillance, to keep people inside their nest and much more not only those drones have become the new toy for kids. Earlier kids had remote vehicles to play but now they have remote control drones as their toys and the demand on online platforms for drones is increasing on every occasion.
The central government has recently simplified the rules regarding the use of drones. Drones will enable faster delivery in the face of the rapidly expanding manufacturing sector in the country. The central government has relaxed controls and announced policies to attract investment, with the expectation that increasing the use of drones in various sectors will have appropriate results. This has created interest among venture capital companies to invest in startups that make drones.
The Center has also announced incentives of Rs 120 crore for drone manufacturing companies under the Product-Based Incentive Scheme (PLI), which has boosted investor interest. The central government aims to attract Rs 5,000 crore in investment in the manufacture of drones over the next three years, a senior official expressed the view that the PLI scheme would inspire the manufacture of drones.
“There is a good response coming from investors in support of drone startups,” US Secretary of Civil Aviation Amber Dube told the media. “Inquiries are also coming in seeking details from venture capitalists. The government does not interfere in investment advice. But giving them our policy guidelines builds a lot of confidence in them,” Dubey explained.
The central government expects the drone manufacturing sector to reach Rs 900 crore by the 2023-24 financial year.
It is hoped that this will lead to 10,000 direct jobs. As of March 2021, the sector has registered a turnover of Rs 60 crore. The value of drone expansion services is expected to reach Rs 30,000 crore. It is estimated that 5 lakh jobs will be created in the next three years in the areas of drone management, drone logistics, data processing, and traffic management.Â
So far venture capital investors have not shown much interest in drone startups. The government declared the use of drones illegal in 2018 for civilian purposes, due to a lack of clarity in terms of regulations. Investment in drone startups between 2011–2021 did not exceed Rs 310 crore, according to figures from the intelligence agency Traxen.
During the same period, $ 4 billion were exported to the US and $ 6.2 billion into drone companies.
There are 158 drone startups in India and 2,772 companies worldwide. “Currently, many Indian drone startups are in talks to raise any funds for the series,” said Amit Shah, Director, Drone Federation of India (Partnerships). The association is made up of 200 drone companies and related service companies.
The value of the services is to be expanded in relation to the use of 30,000 drones. It is estimated that 5 lakh jobs will be created in this sector. Railway stations in 2021 are also said to invest in drones which will create 10,000 direct job opportunities.
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