India’s drone industry is awaiting a revolution with the potential to transform sectors like agriculture, infrastructure, and security. However, regulatory hurdles and slower approval processes continue to keep this industry grounded.
In an insightful conversation with AIM, Skylark Drones co-founder and CEO Mughilan Thiru Ramasamy gave first-hand insights into the impact of these delays on innovation and business growth.
Drones could revolutionise infrastructure monitoring, agriculture, law enforcement, and disaster response. However, he revealed that the company still doesn’t have permission to fly drones in some regions of Bengaluru.
As of September last year, 10,208 type-certified commercial drones have been registered under the Digital Sky Platform, a digital system for managing drone operations in India, as per MoS civil aviation, Murlidhar Mohol, in a recent Rajya Sabha Q&A session.
The Directorate General of Civil Aviation (DGCA) has issued 96 type certificates for different drone models based on their purpose. Of these, 65 models are designed for agricultural applications, while 31 are focused on logistics and surveillance.
These figures highlight the growing adoption of drone technology, particularly in agriculture, where drones are increasingly used for crop spraying, monitoring, and yield assessment.
Regulatory Roadblocks
Despite a series of policy reforms aimed at streamlining drone operations, challenges in obtaining clearances and navigating airspace restrictions have created bottlenecks that are slowing down innovation and adoption.
“To fly a drone in a city, you need approval from multiple agencies – HAL airport, CISF, the Commissioner’s office, and so many others,” Ramasamy said. Despite government initiatives, getting approvals for drone operations remains an uphill battle.
One of the primary regulatory challenges the industry faces is restricted airspace access. Under The Drone Rules 2021, India’s airspace is divided into three categories: red, yellow, and green zones. While 86% of the country’s airspace falls under the green zone, where drone operations do not require special permissions, the remaining areas are heavily regulated.
Red zones, totalling approximately 9,969, require special approvals from the civil aviation ministry and the concerned zone authorities before any operations can take place. Yellow zones, typically located around airports, require permission from air traffic control (ATC) before drone operations can commence.
This zoning system, while essential for safety, has created delays in obtaining necessary approvals, especially in urban areas where drone-based services like e-commerce deliveries, medical supply transport, and infrastructure monitoring could be transformative.
The biggest challenge is that there is no central platform where one can apply for permission. “Everything still runs on pen and paper, or at best, email, which is just digital paper,” Ramasamy explained.
Bodhisattwa Sanghapriya, founder and CEO of IG Drones, told AIM that while the government has made progress in easing compliance, faster clearances for trusted domestic players will further accelerate industry growth.
By prioritising reliable drone manufacturers and solution providers, India can strengthen national security while enhancing the country’s capabilities in surveillance, infrastructure monitoring, and disaster response.
The regulatory landscape for drones in India has improved significantly, with the government actively streamlining approval processes and promoting indigenous technology.
“Although some operational challenges remain, particularly in securing approvals for sensitive zones such as defence areas and no-drone zones, the regulatory mechanism is much more streamlined than before,” Sanghapriya added.
He further said that compared to previous years, regulatory delays have been reduced, particularly for startups manufacturing 100% made-in-India drones with no Chinese components. This aligns with the government’s vision for Atmanirbhar Bharat and its push to make India a global drone hub by 2030.
Supply vs Demand: The Real Issue
The regulatory delays don’t just affect drone startups; they impact enterprises, government projects, and the broader ecosystem. Ramasamy pointed out that while India has focused on incentivising drone manufacturing, real growth will only happen when demand is created.
“More than subsidies, the government needs to create real use cases that push adoption,” he added. Until then, navigating the regulatory maze will remain one of the biggest roadblocks to India’s drone revolution.
Even though the Production Linked Incentive (PLI) Scheme for drone and drone components did not see any allocation in the recent Union Budget 2025, the government has prioritised funding for the space tech industry as a whole.
Notably, the government has allocated ₹676.85 crore to the Namo Drone Didi program as part of its Central Sector Schemes. Regardless, the industry has yet to take centre stage in the Budget.
While China’s DJI dominates the global drone market with fully integrated unmanned aerial vehicle (UAV) systems, India continues to struggle with roadblocks despite both countries having started on similar grounds for innovation.
What is the Government Doing?
The government has taken several steps to ease the regulatory burden on drone operators. More recently, in August 2024, the government amended The Drone Rules to simplify the registration process by removing the requirement for a passport.
“Now, a government-issued proof of identity and address, i.e. Voter ID, Ration Card or Driving License, can now be accepted for registration and de-registration or transfer of drones,” Mohol explained.
Despite these improvements, policy bottlenecks remain a concern. For instance, drone-based delivery services, which have the potential to improve healthcare access in remote areas, face operational delays due to lengthy bureaucratic approvals.
Similarly, drone surveying and mapping in the infrastructure sector require clearances from multiple authorities, leading to project slowdowns.
As per Mohol, the government claims to be working towards addressing these challenges. One significant safety measure implemented is the requirement for all certified drones to have a tamper-avoidance mechanism that protects both the firmware and hardware from unauthorised access. This ensures that drones used in critical sectors remain secure and resistant to hacking.
However, for India to fully harness the benefits of drone technology, further reforms are needed. The Digital Sky platform must be enhanced to enable real-time digital approvals for operations in restricted zones.
Additionally, expanding financial incentives and promoting drone adoption in sectors beyond agriculture will be key to unlocking new opportunities.
