INTRODUCTION OF DRONES BUSINESS ECOSYSTEM IN INDIA
India is the fastest growing economy across the world and country has witnessed stupendous transformation in business ecosystem and technology. It’s not wrong to state that Pro business policies by the central government and establishment of digital ecosystem has surely given a direction to the country which is popularly termed as “India’s Decade”.
Government is encouraging the innovation, novelty in technology and development of drones as commercial industry and utilising the drones for agriculture, mapping, survey of pipelines, survey of oil lines, Medicine delivery and for many other significant purposes which has resultantly saved not only the time and resource for tedious work but has acted as a critical assistance to serve the people and authorities in tough situations.
Private sector is not only testing Drones as ecosystem for their business but to perform the critical task. Recently, ecommerce companies and food companies have adopted the drones under testing for delivery of food, products, medicines, vaccinations.
LEGAL STRUCTURES OF DRONES IN INDIA
Manufacturing, operations, registration and usage of drones in India is governed by the DGCA which works under the Ministry of Civil Aviation. India is focusing on to promote country as the Global drone ecosystem in India. Therefore, Government has undertaken a series of reform measures to promote India’s upcoming drone industry and accordingly introduced Drones Rules, 2021 notified on 25 August 2021 which provide the necessary regulatory framework for commercial use of drones. These rules cover various aspects like type certification, registration and operation of drones, airspace restrictions, research, development and testing of drones, training and licensing, offences and penalties etc. As per rules, for commercial operation of any drone in India insurance is mandatory which must have third party insurance. It is in similar line with the insurance which is mandatory for any vehicle as per the transportation laws applicable within the country.
Drone Airspace Map published on 24th September 2021, has opened nearly 90% of Indian airspace as a green zone for drone flying up to 400 feet and same step has been taken to promote the drone industries in India as well as utilisation of drones in operations, survey, delivery and research. It is on account of the said reasons Drone (Amendment) Rules, 2022 notified on 11th February 2022, abolished the requirement of a drone pilot license. Government introduced Drone certification scheme making it easier to obtain type certificate by drone manufacturers.
Drone Training Schools have also been set up in various States which have the potential of being a game changer in the promotion and development of drone applications. DGCA has established its drone training centre, however, with the time many private institutes have been established for drone training.
RISE OF DRONE AS COMMERCIAL INDUSTRY
Government has introduced schemes to promote and encourage the establishment of drone startups in India. On 30th September, 2021, the Government notified the Production-Linked Incentive (PLI) scheme to promote the growth of drone manufacturing by private companies. The scheme provides for an incentive of Rs 120 crores, spread over three financial years and Drone import policy was notified on 9th February 2022, banning import of foreign drones and freeing up import of drone components. Ministry of Civil Aviation has proactively engaged with various Union Ministries and State/UT Governments across the country to promote drone applications. They have in turn taken several initiatives for promoting the widespread adoption of drones in commercial logistics, agriculture, mining, large-scale mapping and industrial inspection. Nevertheless, in notification of government it has stated that they areutilising services of Drone service providers for vaccine delivery, inspection of oil pipelines and power transmission lines, anti-locust operations, agricultural spraying, survey of mines, land mapping under SWAMITVA scheme for issuance of digital property cards, etc.
It is estimated that the annual sales turnover of the Indian drone manufacturing industry may grow from approximately INR 60 crore in 2020-21 to approximately INR 900 crore by 2024-25. We have many startups manufacturing drones or providing services associated to it to name a few rising startups among many are Aarav, Aotom, Asteria, Garuda, Skylark, however, currently Bangalore and Chennai is major hub for drone startups.
We may see adoption of more drone centric rules and policies with the implementation of drone in modern business, however, it has paved a way not only for innovative startups but has also recognized that the legislatures are open to formulate and introduce the modern laws in parallel line with the modern business system.
©DIXIT MEHTA, CORPORATE LAWYER
DUCTUS EDGE 