What Happened
Domestic Demand Grows, But Export Barriers Threaten Global Rise
India’s drone industry is experiencing rapid growth, driven by increasing domestic military demand. However, the industry faces significant challenges in the export market, including component dependence and export barriers. Despite these challenges, India’s drone exports reached ₹38,424 crore in 2025-26, up 62.66%. The government has implemented policies to support the industry, including a production-linked incentive scheme and a proposed Drone Shakti Mission. However, the industry’s growth may be hindered by the lack of a deep component base and the high cost of indigenous components. This article was first reported by IndraStra Global.