India becomes leading hub for drone start-ups, outpacing UK, China
India has surpassed the UK and China as a preferred destination for drone start-ups, according to a recent analysis by Moneycontrol. The surge in drone start-ups can be traced back to 2021, when the Indian government introduced new drone regulations. These rules simplified registration procedures and eliminated licensing requirements for certain categories.
India's drone start-up count doubles in three years
Data from Tracxn, a data platform, reveals that as of August 2024, India is home to 398 drone start-ups. This figure represents more than double the number of start-ups (157) that were operational three years ago when the new regulations were implemented. In comparison, China and the UK have seen slower growth with 298 and 204 start-ups, respectively.
US leads in drone start-ups
The US continues to lead globally with nearly as many drone start-ups as six countries combined. From 858 start-ups in 2021, the number has grown by 59%, over the years. Despite India's rapid growth in drone start-up count, it trails behind other countries when it comes to funding. The average funding received by top Indian start-ups was $19.4 million this month, a significant increase from $5.1 million in 2021 but still less than global counterparts like Israel and China.
Indian government's incentives boost drone manufacturing
The Indian government has been actively promoting drone manufacturing, providing incentives worth ₹120 crore over the past three years to local drone and drone parts makers, under production-linked incentive (PLI) schemes. This support has further fueled the growth of the drone start-up ecosystem in India. Despite funding challenges, these initiatives indicate a promising future for India's burgeoning drone industry.
