Drone Ki Baat
On August 15th, Prime Minister Narendra Modi from the ramparts of Red Fort in his “Drone Ki Baat” announced that the Government would shortly launch a programme through which women in roughly 15,000 Self Help Groups (SHGs) would be trained to fly and repair drones. In fact, the maintenance and repair of drones is nearly a $50 million industry in term of investments in India. The Prime Minister’s call to integrate women's power will further an effort to enhance the use of drones in agriculture and strengthen the rural economy.
The Prime Minister mentioned the work being done by women in Self Help Groups (SHGs) in rural India, saying his ambition is to see 20 million women become "Lakhpati didis" and the government is incorporating steps towards achieving this goal.
On 23rd June 2023, The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, simplified and liberalized the policy for the export of Drones/Unmanned Ariel Vehicles (UAVs) meant for civilian end uses from India. The decision to do so has been made in accordance with the emphasis on facilitating the export of high-tech goods placed in India's Foreign Trade Policy 2023, which includes encouraging the export of drones and Unmanned Aerial Vehicles (UAVs) made in India for civilian purposes while also taking into account India's international obligations regarding non-proliferation.
The SCOMET (Special Chemicals Organisms Material Equipment and Technology) list for the policy of drones/UAVs meant for civilian use has been amended to simplify and liberalize the policy for the export of drones/UAVs will now be subject to General Authorization for Export of Drones (GAED), a one-time general license valid for 3 years. This would further facilitate the Drone/UAV manufacturers/industry to export drones with ease, thereby, facilitating ease of doing business and promoting export from India.
This regulation change would also encourage India to become a major Drone/UAV manufacturing country, encouraging new drone manufacturers to expand and consider international markets. It will eventually increase GDP by enabling Indian Drone manufacturers to reach bigger markets and compete globally. The Drone/UAV sector may be stimulated to innovate and improve technologically by liberalizing export restrictions.
It will further allow Indian Drone manufacturers to access larger markets and compete on a global scale, ultimately boosting economic activity. Liberalizing export controls on drones may also encourage innovation and technological advancement in the Drone/UAV industry.
India is looking at making its drone sector into a $20-billion industry by 2030 and has already brought the sector under the Production Linked Incentive (PLI) scheme. Drone export restrictions being systematically liberalised might also spur new ideas and technological developments in the field. Over a period of three years, an estimated investment worth ₹5,000 Crore for manufacturing sector drones will be done which in turn will bring a turnover of Rs 900 crore and 10,000 job opportunities will be created. The objective is to establish India as a global drone hub by 2030 and the Ministry of Civil Aviation is committed to facilitating industry, service delivery and consumers in achieving the aforesaid target.
While retracing the history of drones in India, it is pertinent to mention that The Directorate General of Civil Aviation ("DGCA") is the government authority in India responsible for regulating the drone system. As per DGCA, one is permitted to operate a drone, but one must comply with the rules established by the Directorate General of Civil Aviation (DGCA) which is an organisation under the Ministry of Civil Aviation (MoCA). Certain standards and guidelines must be followed in order to operate a drone in India.
The DGCA came up with the draft Unmanned Aircraft System Rules, 2020 (“Draft UAS Rules” or “Rules”) on June 02, 2020. The power to issue such rules has been conferred upon DGCA has been given by the Central Government under the Aircrafts Act, 1934.
Subsequently, for anyone operating an unmanned aerial vehicle in India, the Ministry of Civil Aviation (MoCA) of India released a new set of drone laws and regulations in June 2021. The operator of a UAV must apply for and get a unique identification number in accordance with the new regulations before operating the UAV unless an exemption is granted in accordance. UAV operators will have to submit information on the Digital Sky platform, which is a MoCA-led initiative to control UAV operation and traffic in India, in order to obtain this identifying number.
In fact, during September 2021, the Government approved a Production Linked Incentive (PLI) scheme for drones and drone components. This included an investment of over INR 1 billion for drones and related components over the next three financial years. The scheme further covers those creating drone-related IT materials and aims at scaling-up domestic manufacturing. Per the manufacturer, the PLI has a ceiling of INR 300 million or 20% of the value addition of the concerned manufacturer. Drone start-ups and Micro, Small & Medium Enterprises (MSMEs) with sales turnover above INR 20 million (for drones) and INR 5 million (for components), respectively, would also be eligible for the benefits of the PLI scheme.
In the Union Budget 2022, as a component of the proposals, Finance Minister Nirmala Sitharaman unveiled Drone Shakti Scheme. The plan aims to institutionalise the drone ecosystem's activities and create a structure that would allow for synergies among various players.
During August 2022, an MoU was signed by the Drone Federation of India (DFI) and the Indian Army, represented by the Army Design Bureau (ADB), to accelerate drone technology development. The Drone Federation of India (DFI) is an industry-led, non-profit, non-governmental organisation that advocates for and works to develop an unmanned aviation sector in India that is scalable and safe. The Drone Federation of India solves drone industry concerns on a day-to-day basis by forming alliances with effective international business partners.
While India is at the cusp of mesmerising technological revolution around the drone industry on a daily basis, we are hearing about new breakthrough technological advancements propelling the drone industry. An advanced drone powered by artificial intelligence (AI) is being developed by a state-owned aerospace and defence business, namely Hindustan Aeronautics with its headquarters in Bengaluru for strategic missions in high-altitude regions, especially those near the Chinese border.
Another drone company, with its drone-based advising services, a company based in Hyderabad is revolutionising the agricultural industry in many ways. The business creates precise farm maps using drones and satellite-based remote sensing imagery, offering important information to improve agricultural practices. This state of art company provides a comprehensive four-part service that includes agronomic issue identification, marketplace collaboration for farmers, and the supply of agri-commodities to FMCG, retail, and exporter companies, with a focus on optimising input usage, minimising crop losses, and maximising profit margins.
In healthcare sector two, The drone service for an experiment was provided by a leading innovation company, while National Health Systems Resource Centre (NHSRC) handled the technical support. In this demonstration, a Vertiplane X3 drone model was employed, and 2 kg of medication was loaded to carry these pharmaceuticals to the hospital. As per a statement from the Health Ministry, The airborne distance (one side) was travelled in about 30 minutes, boosting rural healthcare access.
It's natural that the Indian drone industry has experienced tremendous growth in recent years given the rising need for drone technology across a variety of industries, including agriculture, logistics, and defence.
In the first quarter of 2023, start-up firms in India raised a total of $2.8 billion, a 75% decrease from the $11.9 billion raised during the corresponding period in 2022, according to the report. This decrease in funding is the result of rising interest rates and inflation, both of which have had a significant impact on investments. The funding in Drone based start-ups remained steady and the growth and the drone ecosystem is on a terrific upswing.
Several industries, including transportation, agriculture, defence, law enforcement, surveillance, and emergency response, to mention a few, are benefitting from using drones in India. The demand for aerial photography and a variety of corporate applications has surged in recent years, which has sparked an increase in consumer interest.
As we move forward with an explosive growth rate in the use of drones in defence, healthcare, media, entertainment, and agriculture, India is looked up to by the most technologically advanced nations for its revolutionary drone rules and regulatory mechanisms which were created with jet speed. Making India a leader in the drone manufacturing industry will help the nation achieve its goal of having a US$5 trillion economy while also putting a lot of emphasis on the Make in India programme, whose accomplishment will boost national prosperity in a variety of industries. Ease of doing business in the county, current regulations, and support of the infrastructure and the government are paving the way for India to become the world's drone hub by 2030. India had always been seen as a country that was known for its service industry, agriculture, and export of services but always looked down on technological innovation, lack of manufacturing capability and industrial activity, maybe the flight of drones gives India an image makeover on the world stage while its giant-sized fifth largest economy is already a pride of every Indian.
Authors:
Sudhir Mishra, Founder and Managing Partner, Trust Legal
Ritwika Nanda, Partner, Trust Legal
Tavleen Taneja, Associate, Trust Legal
