India's Drone Surge: Shaping defense and enterprise in a changing geopolitical landscape

India’s drone sector is transitioning from a fragmented startup-driven ecosystem into a national strategic asset, shaped by enterprise demand, defense requirements, and regulatory reforms. While drones began as tools for mapping and agriculture, they are now embedded in national security and enterprise infrastructure workflows alike. 

From Civil Mapping to Defense Integration 

The first wave of drone adoption in India was driven by universities and early-stage companies developing systems for land surveys and inspection tasks. Regulatory structure followed in 2018 with Directorate General of Civil Aviation's (DGCA) initial guidelines, and later in 2021, the Drone Rules formalised commercial usage. 

However, geopolitical shifts, particularly along the India-Pakistan border, have elevated drones to a strategic category. Ankit Mehta, CEO of ideaForge, said that their ISR (Intelligence, Surveillance, and Reconnaissance) platforms are now standard assets for the Indian Army in conflict zones. “Recent demand has reaffirmed our focus on drones that can operate in GNSS-denied environments and withstand jamming,” he said. 

ideaForge’s latest system, NETRA V5, reflects broader industry trends: AI-enabled autonomy, secure communication, and ruggedisation for high-risk missions, Mehta stated. 

Market Expansion and Policy Support 

India’s drone market is projected to grow from $654 million in 2024 to $1.43 billion by 2029, at a CAGR of 17%, according to a report by research firm MarketsandMarkets released in May last year. This growth spans sectors such as logistics, energy, defense, and agriculture. 

Policy measures are helping build the required infrastructure. The Production-Linked Incentive (PLI) scheme, with ₹57 crore allocated for FY25, supports local manufacturing. “India is promoting domestic innovation by mandating localisation of key hardware and phasing out Chinese-origin components,” said Mehta. 

Tech Stack: AI, Automation, and Edge Computing 

Enterprise-grade drones in India are no longer just flying machines, they are software-defined platforms. Artificial Intelligence (AI) is enabling drones to interpret visual data, detect anomalies in infrastructure, and operate autonomously in unstructured environments. Edge computing allows for local data processing during flight, reducing latency and enabling real-time decision-making. 

Integration with Enterprise Resource Planning (ERP) systems and cloud-based platforms is becoming common, allowing enterprises to automate asset inspections, monitor large infrastructure zones, and generate analytics without manual intervention. 

What Regulatory Challenges Still Exist in This Sector? 

Countries like the US, China, and Israel are ahead in deploying dual-use drones for military and enterprise purposes. India is narrowing the gap through domestic innovation, but challenges remain in localising components such as imaging sensors, flight controllers, and secure communication modules. 

Despite the rapid growth and technological advancements, regulatory challenges continue to be a barrier to the full potential of India's drone industry. The evolving regulatory environment, while supportive, has some areas requiring clarification. For instance, while the government has been proactive with the 2021 Drone Rules, certain provisions around airspace management, drone registration, and the operational limits of drones in both urban and rural settings remain areas of concern. Additionally, as drones become more integral to defense, industries are pressing for clearer guidelines regarding the use of UAVs in sensitive areas. 

“The government is moving in the right direction, but a more streamlined approach to policy implementation, especially around permissions and certifications for enterprise-level operations, is needed for smoother scaling,” Mehta noted. 

Moreover, the challenge of data privacy and security in drone surveillance technologies is another regulatory hurdle. With drones increasingly used in surveillance and monitoring, ensuring that these operations don’t infringe on citizens' privacy rights will require careful regulatory oversight.