India has slashed GST on drones to a uniform 5%, boosting affordability, innovation, and adoption across industries. Civil Aviation Minister Ram Mohan Naidu says the reform will support Make in India, create jobs, and strengthen India’s leadership in drone technology.
India’s rapidly evolving drone industry received a major boost with the announcement of new Goods and Services Tax (GST) reforms, aimed at simplifying the tax structure and reducing operational costs. Civil Aviation Minister Ram Mohan Naidu on Tuesday hailed the reform as a “landmark step” that will foster innovation, enhance adoption, and support India’s ambitions to become a global leader in drone technology.
A uniform GST rate for drones
Until now, drones in India were subjected to varied GST rates based on their features and usage. Drones with integrated cameras attracted 18 per cent GST, while drones classified for personal or recreational use were taxed at a steep 28 per cent. This complicated structure often created ambiguity for manufacturers and users alike, and added to compliance burdens.
Under the new GST reforms introduced by the Narendra Modi government, all drones, whether used for personal or commercial purposes, will attract a uniform GST rate of just 5 per cent. The new rule applies equally to drones with or without integrated cameras, thereby eliminating classification disputes and providing much-needed policy clarity to the sector.
Calling the reform “a transformative measure,” Naidu said that the uniform rate would make drones more affordable and accessible to individuals, enterprises, and government agencies alike. “This significant measure will also enable India to emerge as a leader in transformative technologies like drones,” he added.
Boost to training and skill development
In addition to drones, the government has also exempted flight simulators and motion simulators—critical for pilot training—from GST. This will encourage the training ecosystem in the country, reducing costs for aviation academies and airlines. Lower training expenses will in turn create a stronger pipeline of skilled drone pilots and operators, who are essential for the industry’s expansion.
Naidu emphasized that easing costs in the training segment will ensure India has a robust base of talent to support the growing demand for drone-based services in agriculture, logistics, defence, and other industries. “This exemption will reduce expenditure on training equipment and encourage more individuals to pursue careers in aviation and drone operations,” he remarked.
Expanding applications across sectors
The rationalisation of GST rates is expected to accelerate the adoption of drones across diverse industries. In agriculture, drones are increasingly being used for crop monitoring, irrigation planning, and pesticide spraying—significantly improving efficiency and reducing manual labour. In petroleum and mining, drones play a vital role in inspecting pipelines, monitoring assets, and ensuring safety in high-risk environments.
Infrastructure projects, such as highway and railway development, also stand to gain through advanced surveying and mapping enabled by drones. Similarly, the logistics sector is exploring last-mile delivery solutions, which could reduce costs and improve delivery speed, particularly in remote areas.
Defence and security remain among the most critical sectors for drone adoption, with applications ranging from border surveillance to rapid-response missions. A reduction in drone costs will allow India’s defence forces and agencies to expand their capabilities with cutting-edge unmanned aerial vehicles (UAVs).
Supporting Make in India and Atmanirbhar Bharat
The GST reforms align with the government’s larger vision under the Make in India and Atmanirbhar Bharat initiatives. By making drones affordable, the government aims to encourage domestic manufacturing and reduce reliance on imports.
Naidu noted that the policy change will create more employment opportunities not only in drone manufacturing but also in allied areas such as software development, data analytics, assembly, repair, and field operations. “Affordable and accessible drones will advance India’s goals under Make in India and Atmanirbhar Bharat while enhancing the efficiency of multiple industries and public services,” he said.
A growth-oriented policy for emerging technologies
Industry experts have long demanded a simplified GST regime for drones, citing the need for both affordability and policy certainty. The latest reforms, according to Naidu, address these concerns comprehensively by offering a growth-oriented framework for the drone ecosystem.
The recognition of drones as both an economic opportunity and a strategic necessity is expected to draw more investment into the sector. With a rationalised tax regime, Indian startups and established firms can innovate with greater confidence, while users across industries benefit from lower costs.
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“The sunrise sector of drones will benefit significantly with the simplified regime,” Naidu observed, highlighting that India is now better positioned to lead the world in the development and deployment of drone technology.
As the country moves forward, the uniform 5 per cent GST rate and exemptions for training equipment mark a turning point in India’s drone policy—one that promises to fuel growth, innovation, and global competitiveness.
