What Union Budget 2025 can do for a drone revolution that Indian agriculture needs

India’s agricultural sector is undergoing a remarkable transformation driven by the integration of advanced technologies like drones. With the government’s continued emphasis on modernising rural livelihoods and fostering sustainable farming practices, there are immense expectations from the upcoming Union Budget 2024-25 for the agri-drone revolution. The allocations and policy measures anticipated this year can be pivotal in empowering farmers, strengthening local manufacturing and accelerating deployment.

Empower farmers and women with the skill

The Union Budget 2024-25 has already demonstrated its commitment to agriculture and allied sectors with a substantial allocation of Rs1.52 lakh crore. Within this framework, the innovative Namo Drone Didi scheme, launched in 2024, stands out as a significant initiative to bridge the technology gap in rural India. The scheme’s Rs1,261 crore allocation supports providing drones to women self-help groups (SHGs), enabling them to offer drone services to farmers.

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With the aim to equip around 14,500 women SHGs with drone technology by 2026, the government is not only promoting precision farming but also creating entrepreneurial opportunities for women in rural areas. Drones have already demonstrated their ability to enhance farming efficiency through precision agriculture resulting in improved crop management and yield optimization.

However, to maintain this momentum, it is crucial that the upcoming budget introduces more such targeted schemes. Expanding training programs for rural youth and farmers will ensure the widespread adoption of drone technology, fostering a skilled workforce capable of leveraging these tools effectively.

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Building a self-reliant ecosystem

The government’s efforts to bolster local manufacturing through the Production-Linked Incentive (PLI) scheme have laid a solid foundation for India’s drone ecosystem. Introduced on 30th September 2021 with an initial outlay of Rs120 crore, with a financial incentive rate of 20 per cent constant till year 2024. The scheme aimed to reduce import dependency and promote domestic production of drones and their components. Recognizing the sector’s growth potential, the Central government also proposed the allocation to Rs165 crore in 2024 to mark a 37.5 per cent increase in incentives over three years.

This surge in funding highlights the government’s vision to establish India as a global drone hub by 2030. Relaxed regulatory norms coupled with incentives for manufacturers have accelerated growth in the drone industry. Today, drones are no longer confined to agriculture, they are making significant strides in healthcare, emergency response, surveillance and defence.

Yet, there is room for greater focus. A larger share of the budget should be dedicated to encouraging local manufacturing, establishing advanced operations centres and creating robust training facilities. By fostering partnerships between private enterprises and the public sector, the government can further nurture a thriving drone manufacturing ecosystem of 120+ current manufacturers resulting in employment generation and innovation.

Expanding agri-drone applications

As per few media reports, the Indian agricultural drone market, currently valued at $145.4 million, is projected to soar to $13 billion by 2030, growing at a CAGR of 22 per cent. Initiatives like Namo Drone Didi and several Public-Private Partnerships (PPPs) have already created a strong foundation for the deployment of drones in agriculture. The widespread adoption of drones in farming has revolutionised traditional practices. Drones allow for precise application of inputs, reducing wastage and environmental impact while maximising productivity. As we look toward the future, government schemes should prioritise expanding the accessibility of drones to marginal farmers. Subsidised leasing models, similar to those implemented through SHGs, can be extended to more regions, ensuring that technology benefits small-scale farmers who form the backbone of Indian agriculture.

Additionally, the Budget 2025 is expected to address the challenges of integrating drones with other precision farming technologies like IoT solutions. By creating a cohesive framework for the adoption of advanced tools, the government can enable farmers to make data-driven decisions, further enhancing efficiency and sustainability.

A vision for the future

As India is on its journey toward tech-driven agriculture, the 5% increase in the Ministry of Agriculture’s budget allocation to Rs1,32,470 crore for 2024-2025 was a bold step. And to stay on this pace to revolutionize rural livelihoods and agricultural productivity this year, we expect the government to focus on increasing investments in precision farming technologies, including drones and IoT solutions. We hope this year’s Union Budget will reflect a robust commitment to fostering a technology-driven agricultural ecosystem, offering targeted incentives for agritech startups and skill development programs for rural youth. Such measures would solidify India’s position as a global leader in sustainable and innovative farming practices.

Preet Sandhuu is Founder and MD, AVPL International. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost’s views.