Will drone deliveries take off in India?

Though India’s drone industry is expected to grow from ₹2,900 crore in 2020 to ₹2.95 lakh crore by 2030, there are multiple factors that might impede the growth and adoption of this technology

The global drone logistics and transportation market is expected to register a CAGR of over 20% between 2017-2025 and Asia has the fastest-growing market for drone services, according to reports. The consistently growing e-commerce market is fuelling this growth in both the logistics and transportation sectors.

One of the factors that could lead to slow take off of drones in India is related to regulatory processes. Acknowledging this, the Central Government released the Drone Rules, 2021, that directly address these concerns and drastically reduces paperwork and costs involved in owning, manufacturing, and operating drones. This is expected to allow experts across fields to find innovative uses for drones within their work.

However, according to experts, there are still obstacles to be overcome. The country’s regulatory environment for drones has strict restrictions, making it difficult to secure permissions for operations, especially in urban areas. This poses significant challenge for companies seeking to implement large-scale drone delivery. Ensuring compliance with regulations, managing air traffic safety, and establishing robust traffic management systems are crucial for the safe and efficient operation of drone deliveries, but remain difficult to achieve.

India has densely populated urban areas with heterogeneous and complex terrain, which poses significant logistical challenges for drones to navigate and achieve successful delivery. Lack of infrastructure like landing pads, charging stations and control centres to facilitate the seamless operation of drones are added constraints, say experts. Drones also need to be equipped with the latest features and capabilities to keep pace with technological advances that ensure they operate in different environments, carry a variety of payloads and maintain high levels of reliability.

Another hurdle is the high initial investment in drone technology and the cost of scaling operations to meet the huge requirements of the Indian market, which may deter companies from fully committing to drone delivery, given the uncertain regulatory landscape. Air traffic safety, secure cargo delivery, privacy and security concerns rise with the increased use of drones and ensuring that drones do not become surveillance tools and pose a threat to public safety is paramount. The implementation of strict safety measures, training programs for operators and the development of a comprehensive regulatory framework are essential to effectively address safety concerns in the case of drones used in India.

Experts however believe that the Indian skies might soon open for drone deliveries to doorsteps, with the Government’s Drone (Amendment) Rules 2023, which aim to liberalize drone regulations and encourage innovation in this space.

The government has also created a single platform to self-generate permissions, register and transfer drones, and download standard operating procedures and training manuals. The Directorate General of Civil Aviation (DGCA) has released a dynamic interactive map within the Digital Sky platform indicating the various zones where drones can operate through color coding. For example, green indicates free operations, yellow signifies restricted operations, and red demarcates the no-fly zones. The concerned ministry will also facilitate the development of drone corridors for cargo deliveries.

Compiled by Rajashri Ramakrishnan