Govt amends export rules to enable Made in India drones to freely fly in global skies

Next time you are in Southeast Asia, the Middle East or South America, don’t be surprised if one of the most sought-after drone brands for civilian applications carries the ‘Made in India’ label.

The government on late Friday liberalised the policy for the export of drones or unmanned aerial vehicles (UAVs) for drones falling under the civilian use category.

The Directorate General of Foreign Trade (DGFT)’s decision is in line with the emphasis laid in the country’s Foreign Trade Policy, 2023, on facilitating the export of high-technology items including drones.

The move will enable the global sale of drones that were previously restricted for export under the Special Chemicals Organisms Material Equipments and Technology (SCOMET) list. 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.

This led the civil aviation minister Jyotiraditya Scindia to take up the matter with the commerce and industry minister Piyush Goyal.

Based on the wider consultations held with stakeholders the SCOMET policy for drones has been revised. 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.

Welcoming the move, president of the apex industry association Drone Federation of India (DFI), Smit Shah said, “One of the key bottlenecks being faced by drone manufacturers was the requirement for permissions and licenses every time a manufacturer got an export order. With the easing of the rules, the export of civilian drones will become a lot easier.”

Shah further added that all Indian drone companies working on applications such as basic surveys, mapping and agriculture would now get an opportunity to not only export their products in a hassle-free manner but also collaborate with international companies to deploy their products and services across the world.

Prepping for future growth

Following the announcement, drone manufacturers were already eyeing a huge growth potential for the goods and services.

“We have already bagged close to 7,000 plus export orders but we could not get them shipped out. We are, therefore, delighted with this very progressive decision taken by the government. This will enable us not only to ship our orders but also fulfill our target of exporting 10,000 drones to 100 countries across the world,” said founder & CEO of the Chennai-based Garuda Aerospace, Agnishwar Jayaprakash.

Garuda, which raised $22 million in funding in a Series A round – the highest for a drone startup to date – and has bulk orders from seven countries including Malaysia, the UAE and Panama is firming up plans to export 10,000 drones by the end of the year.

India is looking at making its drone sector into a $20-billion industry by 2030 and has already brought the sector under the Production Linked Incentive (PLI) scheme. The liberalisation of export controls on drones may also encourage innovation and technological advancements in the upcoming industry.

Moreover, the news comes at a time when the country’s oldest and largest drone maker ideaForge Technology’s issue opens on June 26.

Also Read: Make in India: First Rs 30-crore installment released to drone firms under PLI scheme

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