Drone Federation India Calls for Localisation to Mitigate Import Risks

India's drone industry is at a pivotal juncture, as highlighted by Smit Shah, president of the Drone Federation India (DFI), during a recent briefing ahead of the Bharat Drone Stack Conference 2026. The conference, set to commence on November 12 in Bengaluru, aims to address the burgeoning challenges and opportunities within the unmanned aerial vehicle (UAV) sector. Shah pointed out that despite significant advancements in domestic drone assembly and certification, the industry remains heavily reliant on imported components, which poses substantial risks to its growth and sustainability.

Shah articulated the critical vulnerabilities that arise from the sector's dependence on foreign-made components, stating, "The dependence on foreign-made motors, batteries, flight controllers, communication systems, and rare earth magnets leaves the sector vulnerable to supply disruptions and export restrictions." This reliance not only threatens the stability of the industry but also hampers India's ambitions to become a global leader in drone technology.

The DFI, a not-for-profit organization representing the UAV ecosystem in India, has been advocating for a more robust domestic supply chain. Shah emphasized that while India has made strides in drone assembly and has secured defence orders, the lack of a comparable supply chain for essential components remains a significant hurdle. This situation is exacerbated by geopolitical tensions and global supply chain disruptions, which have become increasingly common in recent years.

Despite these challenges, the Indian drone industry has witnessed remarkable progress. According to DotMR analysis, the domestic market for drones is expected to grow at a compound annual growth rate (CAGR) of over 15% from 2026 to 2030. This growth is driven by increasing applications in agriculture, surveillance, logistics, and disaster management. However, the potential of this growth is contingent upon the industry's ability to localize production.

Shah noted that several Indian companies are already making headway in developing indigenous technologies. "We have companies that are innovating and creating solutions tailored to our unique needs. However, we need to scale these innovations and ensure that they are not just one-off projects but part of a larger ecosystem," he stated. The DFI is working closely with stakeholders to foster collaboration between manufacturers, researchers, and policymakers to build a resilient supply chain.

Government support is crucial in this endeavor. The Indian government has introduced various initiatives aimed at boosting the domestic drone industry, including the Production-Linked Incentive (PLI) scheme, which incentivizes local manufacturing. However, Shah argues that more targeted policies are needed to address the specific challenges of component manufacturing.

"We need to create an environment where local manufacturers can thrive, especially in the production of critical components. This includes providing subsidies, tax incentives, and facilitating access to technology and expertise," he suggested. The DFI is advocating for a comprehensive policy framework that not only supports drone assembly but also incentivizes the development of a local supply chain for components.

As the Bharat Drone Stack Conference approaches, the focus will be on discussing strategies to enhance localization in the drone industry. The event will bring together industry leaders, policymakers, and innovators to share insights and forge partnerships aimed at overcoming the current challenges.

Shah expressed optimism about the future of the Indian drone industry, stating, "With the right support and collaboration, we can build a self-sufficient drone ecosystem that not only meets domestic needs but also positions India as a global player in the UAV market." The conference is expected to serve as a platform for stakeholders to align on a shared vision for the future of drones in India.

The call for deeper localization in India's drone industry is not just a matter of economic strategy; it is a necessity for national security and technological independence. As Smit Shah and the DFI continue to advocate for a more localized approach, the industry stands at a crossroads. The decisions made in the coming months will determine whether India can harness its potential in the drone sector or remain tethered to foreign supply chains that pose significant risks.