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Madhya Pradesh aims to become drone manufacturing hub with new policy
Industry News- Feb 12,25
Officials estimate the policy will attract Rs 3.7 billion in investments over the next five years, creating 8,000 jobs (2,200 direct and 6,600 indirect).
The Madhya Pradesh government has introduced the Drone Promotion and Utilisation Policy 2025 to boost drone manufacturing and encourage their use in agriculture, logistics, security, and governance. The policy, approved by the state cabinet, offers a range of incentives, including subsidies and tax benefits, to position Madhya Pradesh as a key hub for drone production and services.
The policy includes a 40% capital investment subsidy, capped at Rs 300 million, for new investments, along with a 25% subsidy on lease rent (up to Rs 500,000 per year) for three years. Additionally, a Rs 20 million R&D grant will be provided for select sectors. The Chief Minister’s Seekho-Kamao Yojana (MMSKY) will offer Rs 8,000 per month for six months to promote skill development.
To further incentivise drone manufacturers, the state will provide a 100% waiver on stamp duty and registration fees for industrial land leases. Companies will also receive up to Rs 500,000 per year (Rs 2 million maximum) for testing, calibration, and certification. To encourage innovation, Rs 500,000 will be granted for domestic patents and Rs 1 million (or actual cost) for international patents. Mega-scale units investing over Rs 500 million will qualify for additional incentives.
Officials estimate the policy will attract Rs 3.7 billion in investments over the next five years, creating 8,000 jobs (2,200 direct and 6,600 indirect).
With the global drone market projected to grow from $71 billion (2022) to $144 billion (2030) and the Indian market expected to expand from $2.71 billion to $13 billion in the same period, the state aims to capitalise on the industry’s rapid growth.
Drones are increasingly used in precision agriculture, infrastructure mapping, logistics, surveillance, and disaster management. With 90% of Indian airspace designated as a ‘Green Zone’ for drone operations, their adoption is expected to drive economic growth, create jobs, and enhance service delivery.
Madhya Pradesh aims to integrate drones into public safety frameworks, enabling faster emergency responses and improved efficiency in law enforcement and infrastructure monitoring. The policy reinforces the state's ambition to lead India’s Unmanned Aerial Vehicle (UAV) industry by fostering innovation and supporting businesses in the sector.
(Business Standard)
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