MP Introduces Incentives for Drone Manufacturing

The Madhya Pradesh government has launched the Drone Promotion and Utilisation Policy 2025, aiming to establish the state as a hub for drone manufacturing and services. Approved during a recent cabinet meeting, the policy offers a range of financial incentives and subsidies to attract investments and promote the use of drones in sectors such as agriculture, logistics, security, and governance.

Key Incentives and Investment Goals

The policy provides several incentives to support new investments in drone production:

  • 40% capital investment subsidy, capped at Rs 30 crore.
  • 25% subsidy on lease rent, up to Rs 5 lakh per year for three years.
  • Research & Development (R&D) grant of Rs 2 crore for key sectors.
  • 100% waiver on stamp duty and registration fees for industrial land leases.
  • Support for patent filing, with up to Rs 5 lakh for domestic patents and Rs 10 lakh for international patents.

For large-scale projects investing over Rs 50 crore, additional incentives will be available. The state aims to attract Rs 370 crore in drone sector investments over the next five years, creating 8,000 new jobs (including 2,200 direct and 6,600 indirect positions).

Skill Development and Innovation Support

The Chief Minister’s Seekho-Kamao Yojana (MMSKY) provides an incentive of Rs 8,000 per month for up to six months to promote skill development. Additionally, the policy allocates up to Rs 5 lakh per year (capped at Rs 20 lakh) for testing, calibration, and certification.

Officials emphasized that Madhya Pradesh aims to become a leader in drone technology, leveraging its growing importance in precision agriculture, logistics, security, and infrastructure development. The global drone market is projected to grow from $71 billion in 2022 to $144 billion by 2030, while the Indian market is expected to rise from $2.71 billion to $13 billion over the same period.

Also read: AI, ChatGPT Use Restricted on Govt Computers

Applications Across Sectors

Drones have wide-ranging applications, and Madhya Pradesh plans to integrate them into multiple sectors:

  • Agriculture: Drones can be used for precision farming, including crop monitoring, pesticide spraying, and data collection, improving productivity and reducing costs.
  • Infrastructure and Logistics: Drones can assist in project surveying, mapping, and real-time monitoring, enhancing efficiency and accuracy.
  • Public Safety and Security: Drones will play a role in surveillance, traffic monitoring, disaster management, and crowd control, supporting rapid emergency responses.

With 90% of Indian airspace designated as a Green Zone for drone operations, the policy aims to boost economic growth. It seeks to drive innovation across both urban and rural areas. Madhya Pradesh plans to leverage these opportunities to become a leading player in India’s UAV industry.

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