
After a sharp four-day clash with Pakistan in May, India isn’t taking chances anymore. It has announced a bold $230 million drone incentive plan to push local manufacturing of both civil and military drones. This isn’t just about flying gadgets — it’s a statement.
From Clash to Cash: Why the $230 Million Drone Boost?
The recent skirmish with Pakistan wasn’t just on land or air. It was a drone-heavy conflict, with both sides using kamikaze drones and loitering munitions like never before. India took notes — and is now ready to act.

To reduce dependence on imported parts, especially from China, New Delhi will pump ₹20,000 crore ($234 million) over three years into home-grown drone production. This includes hardware, software, counter-drone tech, and services.
It’s Not Just a Tech Plan. It’s a Defence Strategy.
Pakistan’s drone growth has been fast — thanks to China and Turkey. India, meanwhile, has mostly imported drones, especially from Israel. But things are changing.
Now, India wants at least 40% of core drone parts to be made locally by 2028. Motors, sensors, imaging systems — India wants them all built at home.
This new push is bigger than the old ₹1.2 billion drone startup scheme from 2021. That plan struggled due to lack of funding and R&D. The $230 million drone move is bigger, bolder, and clearer.
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More Than Just Money: A Plan to Build the Ecosystem
India has already banned drone imports. But not their parts. This new scheme will reward firms that buy components made in India.
Plus, the Small Industries Development Bank of India (SIDBI) will give easy loans to drone makers. That means more R&D, faster growth, and more startups entering the game.
Already, India has over 600 drone companies, but they need serious support. This incentive plan is the fuel.
What It Means for the Future
India isn’t just responding to Pakistan. It’s setting the tone for future wars, where drones will be as common as tanks. The message is clear: if you want peace, build your own drones.
As Defence Secretary Rajesh Kumar Singh put it: “The lesson is clear. We need to double down on indigenisation.”
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