2022-02-12

India bans import of drones in an effort to boost local manufacturing

By Tasso Konia
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The Central Government has prohibited the import of drones with immediate effect in an effort to boost the 'Make in India' project, which was launched in 2014. The new regulation, on the other hand, has a number of exclusions. These include the import of drones essential for research and development, educational reasons, defense, and security, all of which have been approved by the government on the proviso that the drones are imported only after proper approval has been obtained.

According to a new directive by the Ministry of Commerce and Industry, which was issued on February 9, the prohibition is already in place and has taken effect. However, while it prohibits the use of private drones outright, it does exclude drone components from this restriction. "The importation of drone components, on the other hand, must not be subject to any authorization," the order stated.

For the circumstances that will be exempted in the future, government entities, educational institutions, and government-recognized research and development entities will be permitted to import drones in the future. It is necessary to obtain permission from the Directorate General of Foreign Trade before such an import of drones may be approved. Developed in consultation with the relevant ministries DGFT said that "import policy for drones in CBU (Completely Built-Up)/CKD (Completely Knocked-Down)/SKD (Semi Knocked-Down) form... is forbidden, with exceptions given for research and development, defense, and security needs."

The drone ban and its consequences


After all, the Unmanned Aircraft System Rules, 2021, govern the purchase and operation of all types of drones in India, and these rules are already in place to protect citizens. In a previous article, we went into further detail about these standards while also answering topics such as who may purchase drones in India, what are the requirements for their use, and how the government is regulating drone use. So, were these rules insufficient in the face of India's rapidly developing technology?

We already know that one of the reasons for this is to help grow the country's embryonic drone sector, which was acknowledged by the civil aviation ministry itself. It makes perfect sense given the fact that many of the world's leading drone manufacturers are based in China, and goods from these companies account for the vast bulk of drones sold globally, including in India. Local producers would be able to match the demand for drones in India if the supply from abroad is restricted.

A Rs 120 crore Production Linked Incentive (PLI) plan, which will attempt to expand drone production in India, was recently unveiled by the government as part of its efforts to concurrently enhance local supply. The government, on the other hand, anticipates that the industry would produce investments of up to or greater than Rs 5,000 crore. The aim, which has been established for the financial year 2024, also involves the creation of more than 10,000 new employment in the industry in the country.

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