PLI 2.0 for Drones: What Is Changing for Indian Manufacturers

India’s first drone PLI scheme offered ₹120 crore in incentives over three years and supported 23 beneficiaries, expanding domestic assembly capacity. In early 2026, reports said the government had finalised a second version, PLI 2.0, to deepen local manufacturing.

Key reported features: a focus on drones and critical components, a shift to measuring local content against the total value of the drone rather than only the value added, a localisation target of around 30 per cent of drone value, and coverage of allied services. The scheme is also meant to make documentation easier for startups and MSMEs.

Despite the progress, about 50–60 per cent of subsystem value in Indian drones is still reported to come from imported components, which is why PLI 2.0 is being paired with other programmes, such as Mission Drone Shakti and ANRF MAHA Drones.

What it means for RPTOs and pilots: More Indian manufacturing means more OEMs that need trained pilots, testers and service teams.

Sources: Whalesbook (30 Jan 2026); Kodainya analysis (Jul 2026); Indrastra (Sep 2026).