New Delhi | 11 July 2025
The Government of India is set to launch a transformative ₹2,000-crore ($234 million) Production-Linked Incentive (PLI) scheme to energise the nation’s drone manufacturing sector. The three-year programme, which will run through the 2028 financial year, aims to drastically reduce reliance on imported components and establish India as a global drone hub. The core objective of this new drone PLI scheme is to achieve at least 40% Domestic Value Addition (DVA) in critical drone parts by 2028, creating a surge in demand for skilled technicians and engineers.
This strategic financial push is designed to create a self-reliant ecosystem covering civil and military drones, counter-drone systems, software, and essential components. The policy follows recent border skirmishes in May 2025, which highlighted the strategic need for indigenous drone capabilities. For polytechnic students, this signals a monumental shift from service-level jobs to high-value careers in design, manufacturing, and R&D.
Scheme Snapshot: The New Drone PLI India
The new PLI scheme is designed to be comprehensive, addressing past challenges and building a robust, end-to-end drone ecosystem. A Production-Linked Incentive (PLI) is a government subsidy that rewards companies for incremental sales of products manufactured domestically.
- Total Outlay: ₹2,000 crore ($234 million).
- Duration: Three financial years, from FY 2025-26 to FY 2027-28.
- Key Objective: To achieve a minimum of 40% Domestic Value Addition (DVA) in key drone components by 2028. DVA is the measure of how much of a product’s value is created within India.
- Scope: The scheme covers the manufacturing of civil and military drones, critical components (motors, sensors, communication systems), drone-related software, and advanced counter-drone systems.
- Financial Support: Beyond the PLI incentive, the Small Industries Development Bank of India (SIDBI) will provide low-interest loans for working capital and R&D to startups and MSMEs, solving a critical funding gap.
Why It Matters for Polytechnic Students
While the headlines focus on large corporations, the true engine of this transformation will be a skilled workforce. For students pursuing diplomas in aeronautical, ECE, and mechanical engineering, this policy is a direct pipeline to a high-growth career. The scheme’s core mandate of 40% DVA is forcing a fundamental shift in the industry—from assembling imported kits to designing and manufacturing components from the ground up. This creates a massive demand for “drone builders,” not just “drone operators”.
A Strategic Shift from Drone Operators to Drone Builders
The first wave of drone jobs in India focused on services like aerial photography, which primarily required a pilot certificate. The new drone PLI scheme changes the game. To meet the 40% localisation target, companies must design, test, and manufacture parts in India. This is where polytechnic graduates, with their hands-on training, become indispensable for roles in advanced manufacturing facilities, R&D labs, and testing ranges.
Opportunities for Aeronautical Engineering Graduates
Aeronautical engineers are central to creating flight-worthy hardware. The push for indigenous design opens up numerous specialised roles.
- High-Demand Roles: UAV Systems Engineer, Airframe Design Technician, Propulsion Test Engineer, Payload Integration Specialist.
- Essential Skills: Deep knowledge of aerodynamics and flight dynamics is crucial. Proficiency in CAD software like CATIA and SolidWorks, and analysis tools like ANSYS, will be highly sought after. Experience with lightweight composite materials is a major advantage.
Opportunities for ECE Graduates
The “brain” of any drone is its complex web of electronics. Electronics and Communication Engineering (ECE) graduates will design and integrate these intelligent systems.
- High-Demand Roles: Avionics Developer, Drone AI Architect, PCB Design Technician, Sensor Integration Specialist, Communication Systems Engineer.
- Essential Skills: Expertise in embedded systems (C/C++), control systems software (Python, MATLAB), and platforms like PX4 and Robot Operating System (ROS) is vital. A strong understanding of RF communication and sensor technologies (thermal, LiDAR) will be critical.
Opportunities for Mechanical Engineering Graduates
Mechanical engineers will bring drone designs to life, ensuring they can be manufactured efficiently and withstand real-world operational stresses.
- High-Demand Roles: Drone Design Engineer, Manufacturing Assembler, Quality Control Inspector, Robotics & Mechatronics Engineer.
- Essential Skills: Mastery of CAD/CAM software is fundamental. Skills in blueprint reading, Finite Element Analysis (FEA), and hands-on experience with CNC machines and 3D printers are essential for production and quality assurance roles.
Timeline & Next Milestones
The new PLI scheme is the culmination of a series of deliberate policy actions aimed at building a world-class drone ecosystem in India.
| Date | Milestone | Key Agency/Source |
|---|---|---|
| Aug 2021 | Liberalised Drone Rules, 2021 notified, replacing restrictive older rules. | Ministry of Civil Aviation |
| Sep 2021 | Drone Airspace Map published, opening ~90% of airspace as a “green zone”. | Ministry of Civil Aviation |
| Sep 2021 | First PLI Scheme for Drones (₹120 crore) notified. | Ministry of Civil Aviation |
| Feb 2022 | Import of foreign-made drones banned to boost domestic manufacturing. | DGFT |
| Jan 2025 | The Bharatiya Vayuyan Adhinayam, 2024 comes into effect, modernising aviation law. | Parliament of India |
| May 2025 | Large-scale use of drones in border conflict highlights indigenisation gaps. | Defence Sources |
| Jul 2025 | New ₹2,000 Crore Drone PLI Scheme announced, targeting 40% DVA. | Govt. Sources / Reuters |
| Aug-Sep 2025 | Final scheme guidelines and application portal expected to be launched. | Ministry of Civil Aviation |
| FY 2025-26 | The three-year incentive period for the new PLI scheme officially begins. | DPIIT |
Expert Voices
There is a strong consensus among policymakers and industry leaders that this scheme is a necessary intervention.
Defence Secretary Rajesh Kumar Singh recently highlighted the strategic urgency, stating, “The lesson is clear: in order to create a robust, independent drone manufacturing ecosystem, we must intensify our indigenization efforts”.
The industry, which had advocated for greater support, has welcomed the move. Smit Shah, President of the Drone Federation of India (DFI), had earlier called for a larger PLI outlay, a dedicated R&D fund, and priority lending—demands directly addressed by the new scheme’s design.
From an academic standpoint, the policy fosters a much-needed link between research and industry. Professor Abhishek, an aerospace engineering expert at IIT Kanpur and co-founder of drone startup EndureAir, has long emphasized collaboration to improve the Technology Readiness Levels (TRLs) of indigenous systems. The new scheme’s focus on R&D provides the exact framework for such partnerships to flourish.
Analysts believe the policy will unlock significant market potential. A recent report from Nexgen Exhibitions projects that India’s drone manufacturing capability could reach $23 billion by 2030, driven by demand from defence, agriculture, and logistics.
FAQ for Students
1. How is this new drone PLI scheme different from the first one?
The new scheme is vastly different in scale and structure. Its outlay is over 16 times larger (₹2,000 crore vs. ₹120 crore). More importantly, it addresses a key challenge for startups by including SIDBI to provide low-cost loans for R&D and capital expenses, providing crucial upfront financial support that the first scheme lacked.
2. What non-technical skills should I focus on?
While technical expertise is key, employers also seek strong soft skills. These include strategic problem-solving, project management, clear communication for teamwork, and an innovation-focused mindset. The ability to work in interdisciplinary teams is essential.
3. How can I prepare for these jobs while still in college?
Go beyond your curriculum. Pursue industry certifications in high-demand software (like CATIA or Python). Build a practical portfolio by participating in drone design challenges hosted by organisations like the DRDO. Join student chapters of industry bodies like the Drone Federation of India to network and stay updated.
How to Tap the Incentive
While the PLI incentives are for manufacturing companies, the entire ecosystem benefits. Students and aspiring entrepreneurs should closely monitor official portals for guidelines. For more details on practical skills, see our drone-tech guide for students.
For official information on drone rules and future scheme announcements, visit the official drone portal of the Ministry of Civil Aviation.
References
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- Press Information Bureau. (2022, March 31). *Incentive of Rs 120 crore for drone manufacturers/ industry under the PLI scheme*.
- Press Information Bureau. (2021, December 9). *Incentive of Rs. 120 crore has been provided for Indian manufacturers of drone and drone components under PLI Scheme*.
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- YouTube. (2022, October 20). *Expert Views on Unmanned Aerial Systems by Prof. Abhishek, IIT Kanpur*.
- IIT Kanpur. (n.d.). *Faculty Profile: Dr. Abhishek*. Retrieved July 11, 2025.
- The Economic Times. (2025, July 7). *Drone can boost India’s manufacturing potential to USD 23 bn by 2030: Report*.
- DHL. (n.d.). *What is a PLI Scheme?* Retrieved July 11, 2025.
- Wikipedia. (n.d.). *Production Linked Incentive schemes in India*. Retrieved July 11, 2025.
- Drone Federation of India. (n.d.). *DFI Memberships*. Retrieved July 11, 2025.
- Vault.com. (n.d.). *Drone Manufacturing Workers: Requirements*. Retrieved July 11, 2025.
- The Economic Times. (2024, October 9). *India plans new PLI scheme for drones sector*.
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