Here is why China exports 1000 drones a day and India does not even produce 1000 a year

There was a genuine expectation that with the Bharatiya Janata Party (BJP)-led government coming in at the Centre, there would be an effort to have clear and simple rules that would enable any company to get on with it’s primary tasks (product development, and sales). Instead the time and energy of most technology companies continues to be wasted on figuring out “what the rules are”, with no clear answers available anywhere.

Take a look at the drone industry and the problems it faces in India. I have highlighted the problems in various emails to myriad ministries, but there has been no effort to address them. It is worth noting that while India does not even produce 1000 drones a year, Chinese companies are exporting over 1000 drones a day. The largest company in this field, DJI is the world leader in consumer drones. This market domination by the Chinese has happened because it’s government did not actively sabotage it’s own industry by placing arbitrary restrictions on everything. This is what India does. Now in this season of heightened tensions with China, India is in an unenviable position of having no domestic drone of any significance and having to depend on a Chinese company, DJI, for commercial applications if and when the Indian commercial market is opened up. Primary problems faced by the industry are:

It is not possible to export drones from India without going through an inter-ministerial panel due to restrictions under the Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) list. This is completely unviable, in a rapidly evolving market where customers expect delivery in days not years

Sale of drones for commercial non-government applications is banned in India.

Government tenders have a very long gestation period (several years) and the proposals are framed very poorly, partly because the people framing such requirements have no idea of what is possible & what isn’t.

It is not possible to import components (motors, propellers, batteries) required to assemble a drone (even for demonstrations). When such components are imported, they invariably get seized by customs

The Directorate General of Civil Aviation (DGCA) is apparently working on draft guidelines for the last two years. They might take a few more years to release the same. (After all we live in a world without time!)

There is no clarity from the Department of Industrial Policy & Promotion (DIPP) on how to apply for a drone manufacturing license even though license seems to have been given to a couple of industries.

The drone industry is unlike any other industry. There is constant innovation, which requires testing and research and development (R&D). Otherwise the product becomes obsolete. Currently, flight-testing a drone always involves a risk of the product being seized.

Due to all of the above self-imposed constraints, an industry that could have been a multi-billion dollar industry generating employment for tens of thousands has been hobbled and India is in the unenviable position of having to use Chinese technology in critical applications in the future. All the points mentioned above have been mentioned in various communications with the relevant ministries for the last several years, but there seems to be no resolution in sight. Here is what needs to be done…

Ask companies involved in the production of unmanned aerial vehicle (UAV) avionics to register themselves with one agency in a simple registration process. Care should be taken that this doesn’t degenerate into a license/quota raj type system

These companies have to maintain records of parts (motors, propellers) that they import for either demonstration pieces, research or for salesman samples.

Allow these companies to fly in vast tracks of vacant land available with various Universities and public sector companies spread all over the country.

Inform the customs of the above procedures so that items may be procured hassle free

Allow sales of complete units to only authorized buyers, with the requisite flying licenses.

The above steps will remove a large number of handicaps faced by industry. It is imperative that these steps are put in place immediately or the technology gap that needs to be overcome will be insurmountable. For the sales side, since the government has hobbled the industry for so long, the following incentives may be considered…

Companies with unique technologies and indigenous autopilots may be given exemption from goods and service tax (GST). They have been through enough without having to deal with this additional headache of classification etc. Besides, since most such sales will be business to business (B2B), there will be no net GST payable in any case.

Common facilities for small batch prototyping may be created and placed at the disposal of a pool of companies

Have a “safe list” of countries to which drones may be exported. If necessary, a geographical lock feature may be placed on the drones.

UAV companies should be treated on par with research organizations and avail research grants currently available only to Universities. This is necessary because the domestic market has been closed as a matter of govt policy.

Globally the drone industry is moving ahead at a rapid pace and unlike other sectors, it is industry that is at the forefront of innovation. It is high time that our industry is unshackled so that we may compete on a level playing field.

(Srinath Mallikarjunan is founder of Unmanned Dynamics, an advanced guidance system company)