India Plans $234M Drone Incentive Post Pakistan Conflict

India is set to launch a $234 million, three-year incentive programme aimed at boosting domestic production of civil and military drones and reducing reliance on imported components, particularly from China. This initiative follows an assessment of a recent four-day drone conflict with Pakistan, marking the first large-scale UAV use between the two nuclear-armed neighbors, who are now engaged in a drone arms race. The programme will encompass the manufacture of drones, components, software, counter-drone systems, and services, with a goal to produce at least 40% of key drone components domestically by the end of fiscal year 2028. India’s nascent drone industry, which has historically relied on imports from Israel and components from China, is expected to benefit from increased funding to spur research and development. This move could significantly impact over 600 Indian drone startups, positioning India as a competitive player in defense technology and expanding opportunities in surveillance and civil drone applications. The government plans to invest heavily in local industry, potentially spending up to $470 million on unmanned aerial vehicles over the next two years in a staggered approach.