Drone Delivery sector pins high hopes on the upcoming union budget 2022

By Swapnik Jakkampudi, Co-founder, Skye Air Mobility

2021 has been a promising year for UAVs as it created an optimistic environment with the introduction of new drones rules and PLI scheme.

What's noteworthy is that the industry picked pace when many industries, from hospitality & tourism to retail came to a standstill and job losses were rampant. Tiding over all odds, Drone sector is one such sector that has been consistently picking up which is a positive sign for the growth and economy picking up.

Many companies including Skye Air in India have signed new deals to kick off large-scale, commercial B2B drone operations across all sectors including delivery.

As most of the companies operating in this sector primarily comprise of start ups, they are looking up to the government to simplify policies and provide better support that would help them scale up the delivery sector with higher adoption via drones and leverage the production-linked incentive (PLI) scheme for boosting domestic manufacturing.

So the government needs to realise that the drone delivery Industry in India is still at a nascent stage and small and mostly run by small-size start-ups, therefore, the govt. should announce special Drone Fund, reduction in GST on drone services, R&D grants, tax exemptions, import and export benefits and infrastructure development grants for start-ups and SMEs to help the domestic industry grow faster than the global counterparts and serve not only the domestic market but the global market.

Also one of the important aspects for faster adoption of this technology is that volumes are the need of the hour to bring down the costs. The Government should look into promoting the aspects and benefits of drone deliveries in the private ecommerce and logistics sector so as to boost faster adoption thus resulting in reduction of costs.

Moreover, the government should lay down clear export and import policies which are in favour of the sector to keep with the momentum and tap on global opportunities. We were recently at the Dubai Air Show and could find numerous opportunities for export of products and drone delivery services in the UAE. The time is now for India to consider boosting exports of drones and delivery services across the globe.

Besides, with the pandemic one thing is clear that drones are the need of today. The pandemic has pushed for digitisation. With this digital shift there is immense opportunity for the drone industry to flourish and grow in the years to come.

Businesses across all verticals have started realising the upsides which are the cost efficiency, time saving and technological advancements that drones can weave into a business.

Application of drones is already amplifying across various sectors: delivery, construction, education, law enforcement, media and entertainment, precision agriculture, surveying and mapping, and inspection and monitoring.

Today, both enterprises and the government are realising the economic and social opportunities and sustainability that UAVs can offer. The faster adoption of UAVs is therefore critical to realise the potential of this technology.

And there is no doubt that this will also turn the drone segment into a generator of employment and economic growth primarily owing to its wide scope, flexibility, and ease of use, particularly in the country’s far-flung and remote areas.

So the market has great potential and will require trained professionals to realise the aim of making India the global drone hub by 2030.

The sector overall is extremely hopeful with the upcoming Budget 2022.  Given more tax and non-tax incentives to the UAV sector it will be a game changer even for the allied industries and the economy as a whole. As Skye Air, we look forward to the government to take more initiatives towards promoting drone delivery.