Blanket ban on imports of drones may disrupt industry

News: According to experts, the blanket ban on the import of finished foreign drones is likely to disrupt the drone industry in India.

Must Read: Ban on Drone Import 

What will be the impact of the ban on the import of drones?

Firstly, it will lead to a lot of disruption in terms of business and derail a lot of well-laid plans as 90% of the service providers in India are using imported drones.

Secondly, many foreign brands specially make drones for agricultural use. This would have helped with the government’s Kisan drone initiatives. These too will now be restricted.

Thirdly, India does not have a supply chain for local manufacturing of drones. Hence, schemes like PLI Scheme for drones and drone components to encourage local manufacturing will not have much impact.

Fourthly, it will increase the cost burden on companies, as imported drones are cheaper than locally assembled ones.

What can the government do to reduce the impact of the ban on the import of drones?

Government can offer some incentives to the industry to override the ban on drones, as India does not have the manufacturing capacity to cut dependence on imports.

Source: This post is based on the article “Blanket ban on imports of drones may disrupt industry” published in Livemint on 11th Feb 2022.