September 4, 2025 (New Delhi, India) — India’s rapidly expanding drone sector is set to receive a major boost as the GST Council slashes tax rates on commercial drones and key components. Startups say the move will lower retail prices, accelerate R&D investments, and expand adoption across agriculture, logistics, infrastructure, and emergency response services.

Under the revamped structure, GST on commercial drones has been reduced from 18% to just 5%, while military drones, communication modules, and batteries now carry 0% GST. Industry experts estimate these reforms could lower drone prices by 10–15%, making advanced UAV technology more accessible to farmers, small enterprises, and government agencies.

“This is a game-changer. Affordable drones mean more innovation and more real-world deployments,” noted a leading Indian drone startup founder. “The tax cut strengthens India’s push toward becoming a global UAV hub.”

The shift supports India’s Atmanirbhar Bharat manufacturing ambitions and aligns with national modernization efforts in both civilian and defense operations.

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Why This Matters

• Lower prices speed up commercialization and market penetration

• Strengthens domestic manufacturing & R&D pipelines

• Increases adoption in agriculture, mapping, inspection, and delivery

• Ensures tax competitiveness with global drone markets

• Encourages foreign investments and OEM partnerships

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About India’s Drone Startup Ecosystem

India is home to 350+ registered drone startups, driving innovation in dual-use technologies such as AI-based surveying, precision farming, logistics automation, and public safety solutions. Supported by government initiatives including the PLI Scheme and Drone Rules 2021, the sector aims to position India among the top three global drone markets by 2030 through scalable production and export potential.