The India drone (UAV) market is poised for significant growth, expanding from USD 0.47 billion in 2025 to USD 1.39 billion by 2030, representing a robust CAGR of 24.4%. This rapid expansion reflects the combined influence of progressive regulations, increased government and private investments, and the rising adoption of UAVs across both defense and commercial applications. The Directorate General of Civil Aviation (DGCA) and the Ministry of Civil Aviation have been instrumental in establishing a streamlined regulatory framework, which has simplified approvals, opened new operational corridors, and accelerated adoption across various industries.

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Defense and security continue to dominate as the largest industry segment, accounting for the highest share of the Indian UAV market in 2025. This dominance is attributed to the increasing role of drones in modern warfare, national security, and intelligence operations. With India facing complex regional security challenges and requiring enhanced surveillance, reconnaissance, and logistics capabilities in difficult terrains, UAVs have become indispensable assets. The government’s strong emphasis on self-reliance in defense technology, combined with investments in indigenous platforms, has further bolstered this segment. As a result, defense applications are expected to retain their leadership throughout the forecast period, supported by long-term procurement programs and modernization strategies.
On the commercial front, applications such as agriculture, infrastructure monitoring, energy and utilities inspection, disaster management, and logistics are gaining momentum. Drones equipped with advanced sensors, LiDAR, and AI-driven analytics are enabling precision agriculture, real-time infrastructure surveillance, and efficient disaster response. With India’s expanding digital and industrial infrastructure, UAVs are playing a growing role in supporting smart city initiatives and sustainable development goals, thereby creating new revenue opportunities for both manufacturers and service providers.
From a point-of-sale perspective, the OEM segment is estimated to hold a larger share of the Indian UAV market in 2025 compared to the aftermarket segment. This trend is expected to persist through 2030, driven by the government’s “Make in India” initiative and incentives for local manufacturing. Domestic production not only reduces dependence on imports but also enhances cost-effectiveness, making Indian drones competitive for export markets. The OEM advantage is strengthened by technological advancements in local R&D, the ability to customize UAV platforms for diverse applications, and the potential to integrate with global supply chains. Over the forecast period, this segment is anticipated to remain the backbone of the Indian UAV market’s expansion.
The competitive landscape is characterized by a mix of established aerospace and defense players and innovative start-ups. Companies such as Paras Aerospace, ideaforge Technology, Garuda Aerospace, Tata Advanced Systems, Adani Defense and Aerospace, Asteria Aerospace, and Dhaksha Unmanned Systems are leading the market by leveraging their R&D strengths, strategic partnerships, and product diversification. These firms are focusing on developing specialized UAV platforms, expanding their portfolios to cover both defense-grade and commercial-grade drones, and capturing opportunities in international markets. The presence of such diverse players underscores the vibrancy of India’s drone ecosystem and highlights the country’s potential to evolve into a global UAV hub.
By 2030, India’s drone market will be shaped by several technological and market forces. Continued growth in defense will ensure steady demand, while commercial use cases will drive scalability and innovation. The integration of AI and autonomous flight systems will enhance UAV capabilities, making them more reliable and cost-efficient. Export potential will rise as Indian manufacturers achieve scale and improve cost competitiveness, helping India establish a stronger presence in the global drone industry.
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The India drone (UAV) market is entering a high-growth phase marked by strong government support, robust defense demand, rising commercial adoption, and the emergence of local OEMs as dominant players. With the market projected to nearly triple in value between 2025 and 2030, India is strategically positioned to not only meet its domestic needs but also compete in the global UAV market.