GST reduction on drones to encourage wider adoption, boost domestic manufacturing

The government’s move to slash the Goods and Services Tax (GST) on unmanned aircraft systems (drones) from the earlier 18–28 percent range to a uniform 5 percent, is expected to accelerate drone adoption across sectors and boost domestic manufacturing under the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives.

According to an official statement, the uniform tax rate will eliminate classification disputes, provide policy certainty, and create a more predictable business environment for investors in this fast-growing industry. The 5 percent GST rate applies to all drones, irrespective of whether they are equipped with cameras, ensuring parity and removing ambiguity in classification.

Drones are increasingly being deployed across agriculture, defence, disaster management, and infrastructure development, making them a transformative technology. Recognising their potential, the government is stepping up efforts to integrate drones into national development strategies.

One such initiative, the ‘Namo Drone Didi’ scheme, aims to empower women-led Self-Help Groups (SHGs) by equipping them with drones for agricultural use — a step expected to improve farm productivity and create new livelihood opportunities.

In the defence sector, the Indian Army’s Terrier Cyber Quest 2025 programme is exploring the use of drone technology to address modern security challenges.

The government is also enabling the domestic drone ecosystem by providing affordable certification services through the National Test House and supporting manufacturers through the Production-Linked Incentive (PLI) Scheme for drones and components.

In addition, policy reforms such as the liberalised Drone Rules, 2021, the creation of the DigitalSky platform for online permissions, and training programmes through DGCA-approved institutes are helping build skilled manpower and encourage Drone-as-a-Service startups under the Drone Shakti initiative.

Events like the Bharat Drone Mahotsav have also been instrumental in showcasing indigenous innovations and strengthening the overall ecosystem.

“This reform is a decisive step towards strengthening India’s position in the global drone ecosystem,” the government said. “By ensuring affordability and encouraging innovation, it will accelerate adoption across industries, generate employment, and support India’s vision of becoming a global hub for advanced technologies by 2030.”

(IANS)

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