Spread the love The Government of India has given final approval to the PLI-2.0 (Production Linked Incentive) scheme to create a self-sustaining drone ecosystem, opening new avenues for boosting domestic manufacturing of drones and their critical components. This scheme is an expanded version of the earlier Drone-PLI policy and goes beyond mere hardware manufacturing. It also includes services such as drone leasing and software sales, aiming to develop a comprehensive and integrated drone industry. Under this initiative, an estimated budget allocation of over ₹1,000 crore has been earmarked. The primary objective is to reduce India’s dependence on imports in drone manufacturing and significantly increase the production of locally made components. At present, around 50–60 percent of drones and their parts are imported. Through PLI-2.0, the government aims to cut this import dependence and raise domestic value addition to nearly 30 percent. The government’s decision is expected to create fresh opportunities for companies operating in the drone manufacturing space. Incentives under PLI-2.0 will be linked to the value of drone sales, with special emphasis on value addition and the use of domestically manufactured components. According to the government, this approach will help build an end-to-end ecosystem — from component manufacturing to drone services and software platforms. This initiative is also expected to strengthen India’s position in the global drone market, while accelerating job creation and growth in high-technology sectors. The drone industry is witnessing rising demand across multiple areas, particularly in agriculture, defence, infrastructure development, and surveillance services, which further enhances the relevance of the new PLI scheme. Overall, the PLI-2.0 scheme forms a key pillar of the government’s Make in India strategy and is being developed as a cornerstone for technology-driven manufacturing in the country, reinforcing India’s ambition to become self-reliant in advanced and emerging technologies. Post Views: 9