Govt Liberalises Drone Export Policy To Make India Global Manufacturing Hub

The government has simplified and liberalised the policy for export of drones and Unmanned Aerial Vehicles (UAVs) meant for civilian end uses from India.

This decision aligns with the objectives outlined in India's Foreign Trade Policy 2023, which focuses on facilitating the export of high-tech items and promoting the export of domestically manufactured drones for civilian applications, while considering international non-proliferation obligations.

"All kind/type of drones/UAVs were earlier controlled/restricted for export under the category 5B of the SCOMET (Special Chemicals Organisms Material Equipments and Technology) list under Appendix 3 of Schedule 2 of the ITCHS classification of Import and Export Items," the Commerce Ministry said in a release on Friday (23 June).

This list comprises items subject to specific regulations due to their potential dual-use nature, meaning they can have both civilian and military applications.

Exporting such items required a SCOMET license, posing challenges for the industry, especially when exporting drones with limited capability solely intended for civilian use.

Following extensive consultations with stakeholders and gathering public and industry comments, the SCOMET policy for drones and UAVs meant for civilian use has been amended to simplify and liberalise the policy for export of drones/UAVs, the ministry said.

The Director General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, issued a notification in this regard on Friday.

Under the new policy, the export of drones and UAVs not covered under specified categories in the SCOMET list, with a range equal to or less than 25 km and payload capacity of up to 25 kgs (excluding software and technology), and intended solely for civilian purposes, will be subject to the General Authorization for Export of Drones (GAED), a onetime general license valid for three years.

The policy change eliminates the need for drone manufacturers/exporters with GAED Authorisation to apply for a SCOMET license for every similar export shipment meant for civilian purpose, within the three-year validity period subject to post reporting and other documentary requirements.

This will reduce the compliance burden on the industry to apply for SCOMET license every time they have to export any kind of civilian drone/UAVs. 

"This would further facilitate the Drone/UAV manufactures/industry to export drones with ease, thereby, facilitating ease of doing business and promoting export from India," the ministry said.

This policy change would also promote India as a global manufacturing hub of drones/UAVs and push the start-ups/new drone manufacturers in this field to scale up and look at the global markets, it added.

The ministry further said that the amendment in the policy will allow Indian drone manufacturers to access larger markets and compete on a global scale, ultimately boosting economic activity.

Liberalizing export controls on drones may also encourage innovation and technological advancement in the drone/UAV industry, it said.