New Delhi, Jul 4 (KNN) The Indian government is set to roll out a Rs 1,998 crore (USD 234 million) incentive programme aimed at boosting domestic production of drones for both civil and military use. The three-year initiative seeks to reduce the country’s dependence on imported drone components and keep pace with Pakistan, which has ramped up its drone capabilities with support from China and Turkey. According to government and industry sources, the programme will support manufacturing of drones, related components, software, counter-drone systems, and services. This marks a significant leap from India’s earlier Rs 120 crore production-linked incentive (PLI) scheme launched in 2021, which saw limited success due to funding challenges faced by start-ups. The move follows a brief but intense India-Pakistan drone conflict in May, where both nations reportedly deployed unmanned aerial vehicles at scale for the first time. In response, India is focusing on building a robust indigenous drone ecosystem, with a target of producing at least 40% of critical components domestically by FY2028. India has historically imported military drones, especially from Israel, but a growing local drone industry is now offering cost-effective alternatives. However, certain components like motors, sensors, and imaging systems are still largely sourced from China. The civil aviation ministry is leading this effort, with support from the defence ministry and the Small Industries Development Bank of India (SIDBI), which will provide low-interest loans to firms for working capital and R&D. Currently, India hosts over 600 companies engaged in drone manufacturing and allied services. The new incentive programme is expected to energise the sector, strengthen national security, and drive innovation in unmanned systems technology.