The report further emphasises the need for innovative and competitive manufacturing capabilities and strong action plan to help India become a global hub for drone manufacturing by 2030 . It also highlighted the importance of generating a strong demand, increasing manufacturing, drawing investments and facilitating exports.
A recent EY – FICCI report, ‘Making India the drone hub of the world,’ indicates that the drone and its component industries can boost India’s manufacturing potential to approximately $23 billion by 2030.
The report further emphasises the need for innovative and competitive manufacturing capabilities and strong action plan to help India become a global hub for drone manufacturing by 2030 . It also highlighted the importance of generating a strong demand, increasing manufacturing, drawing investments and facilitating exports.
The EY-FICCI research recommends a cooperative strategy for ministries to coordinate their efforts and assure quick advancement in addition to helping organisations and startups. The research goes into further detail on how drones are increasingly showing promise for use across a variety of industries, including infrastructure, retail, agriculture, homeland security and many others.
Speaking at the launch of the report, Akshya Singhal, Consulting Partner – Government and Public Sector, EY India said, “The drone value chain spans manufacturing and value-added service components, impacting a large spectrum of industries and end-users. Via our report, we recommend critical steps required to capture 25% of the global drone market share through exports from India.”
Ankit Mehta, Co-chair of the FICCI Committee on drones, added, “Making India a drone manufacturing power would contribute to the country’s target of a $5 trillion economy with a larger focus on the Make in India opportunity, and once delivered, its success will contribute to national prosperity across multiple sectors. A strong case exists for a symbiotic relationship between the government and industry to realize our vision to make India the drone hub of the world by the year 2030.”
Key highlights of EY-FICCI report
Impetus on manufacturing: Strong prospects for the localisation of parts like batteries, airframes, and motors now exist.
Support from different ministries: According to the paper, the Ministry of Defence should set aside 5-10 percent of the defence capital budget for new drone purchases and upgrades to the fleet already in place (excluding MRO services).
Constitution of an Inter-Ministerial Committee: Creating an Inter-Ministerial Committee (IMC) comprising representatives from all relevant ministries and departments working in the drone and counter-drone sector is another recommendation made in the study.
Financing: Financial institutions should offer start-ups or MSME businesses who have obtained verified government or private sector orders project finance loans without collateral and without personal guarantees at reasonable interest rates so that they can complete orders.
Streamlining the SCOMET licensing system: The government must clarify any ambiguities resulting from the classification of drones in three different categories under the Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) licencing regime.
Representation on the global stage: Drones are difficult and time-consuming to transport internationally for exhibitions or demonstrations, which hinders Indian manufacturers’ efforts to market their products abroad. The Directorate General of Foreign Trade (DGFT) needs to streamline the process.
Funding: The government can invest in building Indian ecosystem players, offer innovation financing for strategic and high-risk technologies and inventions, and set up a special fund to provide grants for study into drone-enabled technologies and regulations.
Skill and academic development: It is necessary to subsidise the cost of skilling for the development of human resources. It is necessary to create curricula for research, development, production, and services at the IITs, the Rajiv Gandhi National Aviation University (RGNAU), and other educational institutions.
https://www.financialexpress.com/defence/ey-ficci-report-estimate-drone-industry-to-boost-indias-manufacturing-potential-to-23-billion-by-2030/2657445/
