Madhya Pradesh (MP) has become the fourth state to introduce a drone policy – the Madhya Pradesh Drone Promotion and Use Policy, 2025, aimed at attracting investment in the drone sector. The state plans to establish itself as a major hub for drone manufacturing and technology. Over the next five years, it aims to attract an estimated investment of Rs. 370 crore.
As part of MP’s policy, a drone data repository will be created to facilitate the use of drone technology. This platform will centralize the government’s drone data and imagery in line with the Prime Minister’s Gati Shakti initiative. Notably, data from the Gati Shakti initiative is now accessible to the private sector.
The press release stated that drone data repositories will facilitate cross-departmental data sharing. It outlined the use of GIS-based planning and analytical tools for monitoring mechanisms. Moreover, it added that the policy focuses on resource allocation and infrastructure development.
It added that the Department of Science and Technology will be responsible for the management of the drone data repository and maintaining proper arrangements with collaborating partners.
It further stated that the state government will store all drone data collected by state agencies in compliance with data protection laws and regulations outlined in the National Geospatial Policy-2022.
Regulation of Geospatial data in India
In 2021, the government started deregulation of the geospatial sector by introducing Guidelines for acquiring and producing geospatial data and geospatial data services. These guidelines got rid of requirements to obtain approvals, letting Indian private companies freely collect such data.
Following this, in 2022, the government introduced the National Geospatial Policy, which promised that by 2025, India would have ““an enabling policy and legal framework that supports liberalization of the Geospatial sector and democratization of data for enhanced commercialization with Value Added Services.”
Additionally, the policy outlined plans to develop an interface for all digital data with location attributes. This platform will also facilitate easy access, sharing, and reuse of data collected or developed using public funds.
Establishment of Drone Schools
The press release further stated that drones are expected to be used more frequently due to their pilotless nature, as they “reduce the need for human labor while ensuring timely data collection.”
MP, under its new drone policy, will set up drone schools to advance drone technology and build a skilled workforce for drone operations. These schools will be set up through public-private partnerships.
Meanwhile, to the east, Odisha has established India’s first Drone Centres of Excellence (CoEs) under the Sansad Adarsh Gram Yojana (SAGY) in collaboration with drone technology start-up IG Drones.
Financial Incentives under the Policy
- Capital Investment Subsidy: 40% subsidy on capital investment, up to a maximum of Rs. 30 crore.
- Lease Rental Reimbursement: 25% reimbursement for three years, capped at Rs. 5 lakh per annum or whichever is lower.
- Stamp Duty and Registration Charges: 100% reimbursement for leased land.
- Testing, Calibration, and Certification Assistance: Financial support of up to Rs. 5 lakh per year, with a maximum limit of Rs. 20 lakh during the policy period.
- The exact duration of the policy period is not mentioned in the press release.
- Patent Cost Support:
- Rs. 5 lakh per domestic patent.
- Rs. 10 lakh per international patent or actual cost, whichever is lower.
- R&D Project Grant: Up to Rs. 2 crore for projects in areas identified by the state government.
- Internship (CM Seekho Kamao Yojana): Rs. 8,000 per month for up to six months for interns in key areas.
- Mega Scale Unit Incentives: Increased incentives for investments exceeding Rs. 50 crore.
- Support for Educational Institutions: Colleges, universities, and institutions introducing drone-related courses will receive a 50% CAPEX subsidy, up to Rs. 25 lakh.
- Exhibition/Event Participation Subsidy:
- 50% subsidy on participation expenses.
- Capped at Rs. 1 lakh for domestic events and Rs. 2 lakh for international events.
Agricultural Use
The press release states that drones can be used in the agricultural sector for precise spraying of fertilizers and pesticides.
The government already has a scheme for this—the ‘Namo Drone Didi Scheme’—under which 1,094 drones were distributed in 2023-24, with 500 deployed so far. However, the government had stated that no direct expenditure has been incurred under the scheme to date, despite an allocation of Rs. 1,261 crore.
Namo Drone Didi Scheme’s heavy reliance on private companies to bear costs adds a layer of opacity, as their financial practices and allocations are not subject to the same level of public scrutiny as government expenditure.
Other States’ Drone Policies
Telangana was the first state to introduce a draft drone policy in 2019, setting the groundwork for UAV regulations. Himachal Pradesh followed in 2022 with its Project GARUD, focusing on integrating drones into government operations. More recently, Andhra Pradesh approved its Drone Policy 4.0 in November 2024, aiming to boost investments in drone manufacturing and services. Notably, reports indicated that during the COVID-19 pandemic, Telangana bypassed the Directorate General of Civil Aviation (DGCA) – the civil aviation regulator, when obtaining permission to use drones.
Why It Matters
MP’s drone policy holds significance as India’s drone ecosystem rapidly evolves. As of September 2024, India has registered 10,208 type-certified commercial drones on the DGCA’s Digital Sky Platform, with 86% of airspace classified as a green zone, allowing drone operations without prior approval.
With global players like Amazon aiming to push drone delivery boundaries and exploring Mumbai and Bangalore for trials, India’s regulatory landscape is ripening. MP’s policy aligns with this shift, aiming to attract investment and boost manufacturing.
Andhra Pradesh is also eyeing to position itself as a major player in the drone sector, aiming to capitalize on the expanding global market. With a target of Rs. 1,000 crore in drone exports and a goal of achieving Rs. 3,000 crore from drone manufacturing and services, the state is aiming to woo investors and industry leaders by offering incentives and infrastructure support.
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