India’s Commercial Drone Market to Grow 18% Till FY29: Report

Mumbai: India’s commercial drone industry, valued at $1.88 billion (around Rs 17,000 crore) in FY26, is projected to grow at a compound annual rate of nearly 18 per cent between FY25 and FY29, according to a report by B2K Analytics.

Globally, the United States leads the commercial drone market, followed by China, while India currently ranks seventh.

The report highlighted that drones can significantly reduce agricultural costs. Agrochemical spraying using drones can cut expenses by nearly 80 per cent compared to manual labour. The analysis compared small and medium-sized drones priced between Rs 6.4 lakh and Rs 7.1 lakh, with an operational life of three years, against annual manual labour costs of about Rs 1.7 lakh.

Despite higher upfront investment, drones can cover about 6 to 6.6 acres in the time it takes manual labour to spray one acre. After factoring in efficiency and depreciation, drones were found to be more than 78 per cent cost-effective compared to traditional methods.

Currently, 122 drone models in India hold Type Certificates issued by the Directorate General of Civil Aviation, confirming compliance with safety and performance standards for commercial use. Of these, nearly 70 per cent are certified for agricultural purposes, mainly agrochemical spraying, while about 24 per cent are used for surveillance and mapping — making agriculture the dominant application.

Government policies have also boosted the domestic drone ecosystem. Measures include restrictions on fully built drone imports and production-linked incentive schemes to support manufacturing and research. Initiatives such as the Namo Drone Didi aim to empower women self-help groups with drone technology and expand agricultural adoption.

The Ministry of Agriculture and Farmers Welfare provides subsidies for drone purchases, while the Ministry of Mines and Ministry of Road Transport and Highways deploy drones for monitoring mining activities and highway projects. The Ministry of Defence also uses remotely piloted aerial vehicles to enhance operational readiness.

Additionally, around 90 per cent of India falls within the green zone, where drones can be operated without prior permission. The report added that after early adoption in states such as Punjab, Haryana and Andhra Pradesh, drone use in agriculture is expected to expand further, creating a broader farm-based market.

With inputs from IANS