MP looks to become drone manufacturing hub with new policy

New Delhi: The Madhya Pradesh Government has formulated a new drone policy to foster manufacturing of drones in the state as well as encourage their use across sectors like agriculture, logistics, security and governance.

The state cabinet in its meeting on Tuesday approved the Madhya Pradesh Drone Promotion and Utilisation Policy 2025, officials said.

The policy focuses on promoting drone manufacturing, assembly, and maintenance. It offers incentives such as subsidies and tax incentives to manufacturers, aiming to make Madhya Pradesh a hub for drone production and services.

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It provides for a 40 percent capital investment subsidy with a cap of Rs 30 crore for new investments. Also, a 25 percent subsidy on lease rent, with a maximum of Rs 5 lakh per year, is provided for three years. A Rs 2 crore R&D grant is provided in identified sectors.

To promote skill development in key sectors, Chief Minister's Seekho-Kamao Yojana (MMSKY) offers an incentive of Rs 8,000 per month for up to six months, officials said.

Also, 100 percent stamp duty and registration fee waiver is given for land leased for industrial use, and up to Rs 5 lakh per year with a maximum of Rs 20 lakh is provided for capital support for testing, calibration, and certification during the policy period.

To encourage patent filing, Rs 5 lakh for domestic patents and Rs 10 lakh or the actual cost incurred for international patents is borne by the state government.

Mega-scale units making investments of over Rs 50 crore will be eligible for enhanced incentives.

Officials said the state government is hoping to attract Rs 370 crore of investment in the sector in the next five years. This would create 8,000 new jobs (2,200 direct and 6,600 indirect).

While the global drone market is expected to grow from USD 71 billion in 2022 to USD 144 billion by 2030, the Indian market is projected to rise from USD 2.71 billion currently to USD 13 billion by 2030.

Drones are used in sectors like agriculture, defence and security, logistics, and infrastructure sectors.

With 90 percent of Indian airspace designated as 'Green Zone' for drone operations, their use can lead to economic growth, job creation, and enhanced service delivery in both urban and rural areas.

Madhya Pradesh wants to leverage drone technology to improve efficiency, reduce costs, and foster innovation, making the state a leading player in the unmanned aerial vehicle (UAV) industry.

The state will provide financial support in the form of subsidies and tax incentives will be provided for drone manufacturing and service providers who establish operations in the state.

Drones can be used in precision agriculture to improve crop monitoring, spraying pesticides, fertilizers, and data collection, leading to higher productivity.

In the infrastructure and logistics sectors, drones can be used for surveying and mapping of projects, improving accuracy, and reducing costs.

Drones can also be used for enhancing surveillance, monitoring infrastructure, and law enforcement. This includes using drones for traffic monitoring, disaster management, and crowd management.

Madhya Pradesh plans to integrate drones into the public safety framework for rapid response during emergencies.

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