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India is increasing investment in drone industry after conflict with Pakistan
India is set to launch a $234 million (Rs 2,000 crore) incentive program for military and private drone manufacturers, at least three government sources told Reuters, in a bid to reduce India’s reliance on drone imports and counter Pakistan’s drone program, which is backed by China and Turkey.
India is increasing investment in drone industry after conflict with Pakistan
India’s push to develop its own drones comes after a four-day conflict with Pakistan in May, which saw the two arch-rivals use drones extensively in attacks on each other for the first time. The nuclear-armed neighbours are now in a race to develop drone technology.
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India
India to boost drone investment after Pakistan clash
Reuters
New Delhi
Published: 04 July 2025, 19:10
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India is set to launch a $234 million (Rs 2,000 crore) incentive program for military and private drone manufacturers. The program is being taken to reduce India’s dependence on drone imports and counter China- and Turkey-backed Pakistani drone programs, at least three Indian government sources told Reuters.
India’s initiative to develop indigenous drones is behind a four-day conflict with Pakistan in May. The conflict marked the first time that the two arch-rivals have used drones extensively in attacks on each other. The nuclear-armed neighbours are now in a race to develop drone technology.
The Rs 2,000-crore programme will provide incentives for drones, components, software, defence-drone systems and related services over the next three years, two government officials and an industry insider told Reuters.
Details of the programme have never been made public before. The budget is much higher than the Rs 1.2 billion Production-Linked Incentives (PLI) scheme launched in 2021. The PLI was originally set up to help drone entrepreneurs. But that initiative has struggled to raise capital and invest in research.
India’s civil aviation and defence ministries, which are leading the drone programme, did not immediately respond to emailed questions from Reuters.
Earlier, a Reuters report said that India is planning a major investment in its domestic drone industry, potentially spending up to $470 million in the next 12 to 24 months. Government and military officials say the spending will be phased in.
