The Madhya Pradesh government has unveiled a new drone policy aimed at fostering local drone manufacturing while encouraging their widespread adoption across sectors like agriculture, logistics, security, and governance. The state cabinet approved the Madhya Pradesh Drone Promotion and Utilisation Policy 2025 on Tuesday, with a focus on boosting the production, assembly, and maintenance of drones. The policy includes various incentives, such as subsidies and tax breaks, to establish Madhya Pradesh as a major center for drone manufacturing and services.
Key provisions of the policy include a 40% capital investment subsidy for new investments, up to a limit of Rs 30 crore, and a 25% subsidy on lease rent for three years, with a cap of Rs 5 lakh per year. A Rs 2 crore research and development grant is also available for select sectors.
To support skill development, the Chief Minister’s Seekho-Kamao Yojana (MMSKY) offers a Rs 8,000 monthly incentive for up to six months. Additionally, 100% stamp duty and registration fee exemptions are available for land leased for industrial purposes. The policy also offers capital support for testing, calibration, and certification, up to Rs 20 lakh during the policy period.
For encouraging innovation, the government will cover up to Rs 5 lakh for domestic patents and up to Rs 10 lakh (or the actual cost) for international patents. Large-scale projects investing over Rs 50 crore will qualify for enhanced incentives.
The state is targeting an investment of Rs 370 crore in the drone sector over the next five years, which could create approximately 8,000 new jobs, including 2,200 direct and 6,600 indirect positions. The global drone market is projected to grow from USD 71 billion in 2022 to USD 144 billion by 2030, while India’s drone market is expected to increase from USD 2.71 billion to USD 13 billion in the same period.
Drones are already being used in various industries such as agriculture, defense, logistics, and infrastructure. With 90% of Indian airspace designated as ‘Green Zone’ for drone operations, their use can significantly boost economic growth, create jobs, and improve services in both urban and rural areas.
Madhya Pradesh plans to harness drone technology to enhance efficiency, reduce costs, and drive innovation, positioning itself as a key player in the unmanned aerial vehicle (UAV) sector. The state will offer financial assistance through subsidies and tax incentives to encourage drone manufacturers and service providers to set up operations. Drones are expected to revolutionize sectors such as precision agriculture, infrastructure surveying, logistics, and public safety, making them an integral part of the state’s growth strategy.
