GST Slash on Drones to Boost Adoption & Manufacturing

• GST on drones reduced to 5% to encourage wider use and support Make in India.
• Uniform tax structure removes classification confusion and boosts investor confidence.
• Government pushes for drone integration across sectors including agriculture, defence, and disaster relief.

In a major boost to India’s drone industry, the government has announced a reduction in GST on all drones to a flat 5%, down from the previous 18-28%. This move aims to make drones more affordable, encourage wider adoption across sectors, and strengthen domestic manufacturing under the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives.

According to an official statement, the new uniform tax rate applies to all drones, whether fitted with cameras or not, eliminating classification disputes and providing policy clarity for businesses.

Drones are being recognised as key tools in sectors like agriculture, defence, disaster management, and infrastructure development. The government is actively integrating drones into national development strategies. One such example is the ‘Namo Drone Didi’ scheme, which provides women led self-help groups with drones for agricultural use, boosting productivity and creating new livelihood opportunities.

In the defence space, initiatives like Terrier Cyber Quest 2025 show the Army’s increasing focus on drones to tackle modern security challenges. To support the growing demand, the government is also making certification services more affordable via the National Test House, enabling smoother product testing and regulatory approval.

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India’s ambition to become a global drone hub by 2030 is backed by several supportive policies. These include the liberalised Drone Rules, 2021, the DigitalSky platform for real time approvals, and a PLI scheme to encourage local production. Initiatives like Drone Shakti promote drone based service startups, while DGCA certified training centres are developing skilled manpower to serve the growing industry.

Public events like Bharat Drone Mahotsav continue to highlight Indian drone innovations and foster collaboration between startups, policymakers, and industry players.

The government says this tax reform will promote affordability, foster innovation, and accelerate drone usage in various fields, ultimately driving job creation and positioning India as a global leader in drone technology.