Google’s plan to establish drone manufacturing facility in India lifts domestic industry’s expectations

A meeting between officials of Google’s parent Alphabet and Tamil Nadu Chief Minister M.K. Stalin came as a shot in the arm for Indian drone manufacturers. Reports suggest that the tech giant is planning to set up a factory in the southern state to manufacture drones.

The Indian government’s efforts to give the industry a boost appear to be bearing fruit. In 2021, the government announced a subsidy of Rs 120 crore under the Production-Linked Incentive (PLI) scheme for the manufacturers of drones and their components. Then, in the Interim Budget 2024–25 presented earlier this year, Union Finance Minister Nirmala Sitharaman increased the outlay for the sector under the PLI scheme to Rs57 crore from Rs33 crore the previous year.