India plans $230 million drone incentive after Pakistan conflict

4/7/2025 16:17

India will launch a $234 million incentive programme for civil and military drone makers to reduce their reliance on imported components and counter rival Pakistan's programme built on support from China and Turkey, three sources told Reuters.



India's push to build more home-grown drones stems from its assessment of the four-day clash with Pakistan in May that marked the first time New Delhi and Islamabad utilized unmanned aerial vehicles at scale against each other. The nuclear-armed neighbours are now locked in a drones arms race.



New Delhi will launch a 20 billion Indian rupees ($234 million) programme for three years that will cover manufacture of drones, components, software, counter drone systems, and services, two government and one industry source, who did not want to be named, told Reuters.



Details of the programme have not been previously reported and its planned expenditure is higher than the modest 1.2 billion rupees production-linked incentive scheme New Delhi launched in 2021 to promote drone start-ups, which have struggled to raise capital and invest in research.