Made in India drones to fly high in global skies
The Indian government has recently amended its export rules to enable the global sale of drones that were previously restricted for export owing to their potential for dual use in both civilian and military applications. This is a major boost for the country’s drone sector, which has been witnessing rapid growth and innovation in recent years.
What are the new rules?
The new rules, announced by the Directorate General of Foreign Trade (DGFT) on June 24, 2023, have liberalised the policy for the export of drones or unmanned aerial vehicles (UAVs) for drones falling under the civilian use category. Under the amended policy, civilian drones and UAVs with a range equal to or less than 25 km and delivering a payload of not more than 25 kg – excluding the software and technology of these items – have been brought under the General Authorisation for Export of Drones (GAED). The one-time GAED license will be valid for a three-year period.
The new rules have done away with the requirement of obtaining a Special Chemicals Organisms Material Equipments and Technology (SCOMET) license for the export of such drones. The SCOMET list deals with items that are subject to specific regulations due to their potential dual-use applications in terms of both civilian as well as military uses and are governed by international obligations on non-proliferation. The SCOMET license was required for the export of such items leading the country’s fledgling drone industry to face obstacles when it came to exporting drones only meant for civilian use.
Why is this important?
The decision to liberalise the export controls on drones is in line with the emphasis laid in India’s Foreign Trade Policy, 2023, on facilitating the export of high-technology items including drones. The move is expected to boost innovation and technological advancements in the country’s drone sector, which has been showing great potential in various sectors of the economy like agriculture, mining, infrastructure, surveillance, emergency response, transportation, geo-spatial mapping, defence, and law enforcement etc.
The new rules will also enable Indian drone manufacturers to tap into the global market for drones, which is projected to grow at a compound annual growth rate (CAGR) of 19.9% from 2020 to 2027 and reach USD 58.4 billion by 2027. India has been actively pursuing the goal to transform its drone sector into a USD 20-billion industry by 20301 and has taken several steps to promote domestic drone manufacturing and usage. These include issuing liberalised drone rules in 2021, publishing a drone airspace map with green, yellow and red zones, extending the production linked incentive (PLI) scheme to drone manufacturing and introducing a single-window DigitalSky platform to help the drone industry grow.
What are the challenges?
While the new export rules are a welcome step for the Indian drone sector, there are still some challenges that need to be addressed to ensure its smooth and sustainable growth. Some of these challenges are:
Lack of adequate infrastructure and skilled manpower for drone operations and maintenance
Need for more awareness and education among end-users and stakeholders about the benefits and applications of drones
Need for more coordination and collaboration among various government agencies and departments involved in regulating and facilitating drone activities
Need for more research and development in areas such as artificial intelligence, machine learning, computer vision, data analytics, cyber security, etc. to enhance the capabilities and performance of drones
Need for more compliance with international standards and norms on safety, security, privacy and ethics related to drone operations
Conclusion
The Indian government’s decision to amend its export rules to enable Made in India drones to freely fly in global skies is a significant step towards making India a global drone hub by 2030. The move will not only boost the domestic drone industry but also create new opportunities for trade, investment, innovation and employment in this emerging sector. However, there is still a lot of work to be done to overcome the challenges and barriers that may hinder the growth and development of this sector. The government, industry, academia and civil society need to work together to create an enabling ecosystem for drones that can benefit both India and the world.
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