GST Reduction On Drones To Encourage Wider Adoption, Boost Domestic Manufacturing

(MENAFN- IANS) New Delhi, Sep 19 (IANS) The GST reduction on unmanned aircrafts (drones) has been significantly reduced from the earlier 18-28 per cent to a uniform 5 per cent rate which will encourage wider adoption of drones across sectors while also boosting domestic manufacturing under the 'Make in India' and 'Atmanirbhar Bharat' initiatives, according to the government.

A uniform tax structure will end classification disputes, provide policy certainty, and offer a predictable environment for businesses investing in this emerging industry, said an official statement.

The uniform 5 per cent GST rate is applicable on all drones, irrespective of whether they are fitted with cameras or not, which ensures parity and eliminates ambiguity in classification.

Drones have emerged as transformative tools across sectors like agriculture, defence, disaster management, and infrastructure development.

Recognising their potential, the Indian government is intensifying efforts to integrate drone technology into national development strategies. Initiatives such as the 'Namo Drone Didi' scheme aim to empower women-led Self-Help Groups (SHGs) by providing drones for agricultural services, thereby enhancing productivity and creating livelihood opportunities.

In the defence sector, the Indian Army's Terrier Cyber Quest 2025 focuses on leveraging emerging technologies, including drones, to address modern security challenges.

Furthermore, the government is facilitating the growth of the domestic drone industry by offering affordable certification services through the National Test House, supporting the 'Make in India' initiative. These concerted efforts underscore the government's commitment to harnessing drone technology for economic growth, national security, and social empowerment.

The government of India has taken several steps to promote the drone industry, aiming to make India a global drone hub by 2030.

Key measures include the liberalised Drone Rules, 2021, creation of the DigitalSky platform for online permissions, and the PLI Scheme for drones and components to boost domestic manufacturing. Initiatives like Drone Shakti encourage Drone-as-a-Service startups, while training programmes through DGCA-approved institutes are building skilled manpower.

Events such as the Bharat Drone Mahotsav further showcase indigenous innovations and strengthen the ecosystem, according to the government.

“This reform is a decisive step towards strengthening India's position in the global drone ecosystem. By ensuring affordability and promoting innovation, it is set to accelerate adoption across industries, generate employment, and contribute to India's vision of becoming a global hub for advanced technologies,” the government noted.

-IANS

na/

MENAFN19092025000231011071ID1110083075