India’s drone technology startup ecosystem has emerged as one of the most vibrant and rapidly expanding sectors in the country’s technology landscape. With approximately 526 drone-related companies operating in India as of January 2026, including over 200 dedicated startups focused on drone development, the sector represents a remarkable convergence of innovation, entrepreneurship, and supportive policy frameworks. Of these startups, 144 have secured funding, with 33 having progressed to Series A or later funding stages, demonstrating substantial investor confidence and market validation.
The Indian drone market, valued at approximately $4.2 billion in 2025, is projected to reach an impressive $23 billion by 2030, creating unprecedented opportunities for innovative startups to capture market share and drive technological advancement. The supportive ecosystem created by the Drone Rules 2021, Production Linked Incentive scheme allocating Rs 120 crore over three years, reduction of GST to 5 percent in September 2025, and the import ban implemented in February 2022 has created fertile ground for homegrown innovation to flourish.
These policy initiatives, combined with India’s deep engineering talent pool emerging from institutions like IIT Bombay, IIT Kanpur, and BITS Pilani, position Indian drone startups to compete globally while addressing critical domestic needs across agriculture, defense, logistics, and emergency services.
1. Raphe mPhibr
Raphe mPhibr has established itself as India’s most well-funded drone startup, having raised an impressive total of $145 million in equity funding through multiple rounds. The company’s most recent achievement came in June 2025 when it secured $100 million in an all-equity Series B round led by General Catalyst, with participation from Think Investments. This substantial funding round positions Raphe mPhibr to significantly expand its research and development capabilities and boost local production capacity to meet surging demand for military-grade unmanned aerial vehicles across India’s defense and security forces.
Founded in 2016 by brothers Vikash and Vivek Mishra while they were studying at the Massachusetts Institute of Technology and Georgia Institute of Technology respectively, Raphe mPhibr embodies the vision of bringing world-class aerospace engineering expertise back to India to serve the nation’s defense modernization needs. The co-founders spent the initial three to four years conducting comprehensive research to understand the operational needs of India’s defense forces, along with environmental and terrain considerations unique to the Indian subcontinent. This foundational research phase enabled them to develop drones specifically optimized for Indian operational requirements rather than adapting foreign designs.
Raphe mPhibr’s product portfolio spans multicopters, fixed-wing platforms, and vertical takeoff and landing aircraft, all designed to meet specific mission profiles across surveillance, reconnaissance, and tactical operations. The company employs approximately 600 people, with 150 dedicated to research and development and over 250 focused on production, demonstrating its commitment to building indigenous manufacturing capabilities. Raphe mPhibr has strategically avoided dependence on Chinese components, thereby insulating itself from supply chain vulnerabilities while contributing to India’s self-reliance objectives in critical defense technologies.
The startup’s technology stack incorporates artificial intelligence for object detection in surveillance scenarios, automatic frequency band switching to adapt to electronic warfare environments, and operational unmanned aerial vehicle swarm intelligence enabling decentralized decision-making using AI. These advanced capabilities position Raphe mPhibr’s platforms to operate effectively in contested electromagnetic environments where traditional communications-dependent drones would be rendered ineffective.
The company serves more than ten customers, all of which are Indian government agencies including the Indian Army, Navy, and Air Force, as well as armed police forces such as the Border Security Force, Central Reserve Police Force, and Indo-Tibetan Border Police. This exclusive focus on government and defense customers demonstrates both the trust these institutions place in Raphe mPhibr’s capabilities and the startup’s strategic positioning in a market segment with substantial growth potential driven by India’s increasing defense spending on unmanned systems.
2. NewSpace Research and Technologies
NewSpace Research and Technologies has emerged as one of India’s most innovative aerospace and defense research companies, specializing in next-generation unmanned aerospace systems with cutting-edge capabilities that place it among global technology leaders. Founded in 2017 by Sameer Joshi, a veteran of the Indian Air Force, and Julius Amrit, NewSpace has secured total funding of $73.2 million across eleven rounds from 102 investors, demonstrating broad-based confidence from the investment community in the company’s technology and market potential.
The company’s most significant funding achievement came in March 2024 when it raised $52 million in a bridge round, comprising $33 million in equity from prominent investors and $19 million in debt facilities from State Bank of India’s startup hub and SIDBI. In August 2025, NewSpace further strengthened its financial position by securing Rs 115 crore through a debt round led by Lend Lease Company India.
NewSpace’s technological capabilities span an impressive range of unmanned systems, with particular expertise in persistent drones for earth observation and communications operating at altitudes from 5 kilometers to 20 kilometers with endurance ranging from days to months. The company’s High Altitude Pseudo Satellite HAPS technology demonstrator represents cutting-edge aerospace technology with planned endurance exceeding three months, placing NewSpace among only a handful of global firms capable of developing such advanced systems. In a remarkable achievement that garnered national attention, NewSpace set an Indian national endurance record with a demonstrated flight endurance of over 24 hours for an indigenously designed, developed, and manufactured unmanned aerial system.
The company’s flagship product line, the Sheshnaag series of swarming unmanned air systems, named after the mythological multi-headed serpent, represents a paradigm shift in military drone doctrine. The Sheshnaag-150, a 150 kilogram long-range precision strike unmanned aerial vehicle, successfully completed flight trials in 2025, achieving a remarkable Circular Error Probable of just 5 meters during its maiden flight. This extraordinary precision, combined with the platform’s ability to operate autonomously in swarms with a range exceeding 1,000 kilometers, enables coordinated mass and saturation attacks that can overwhelm even sophisticated enemy defenses. The system’s sophisticated homegrown software enables decentralized swarm-based kinetic and non-kinetic effects, representing India’s entry into the elite club of nations possessing advanced swarm drone technology.
NewSpace has successfully delivered on major defense contracts, including 100 swarm drones comprising Beluga and Nimbus MK-III models to the Indian Army in March 2023 under a $15 million fast-track contract, making the Indian Army the first major armed force globally to operationalize high-density swarm unmanned aerial vehicles.
The company delivered the first batch of tethered drone systems under a Rs 250 crore contract in May 2025, demonstrating its ability to meet rigorous military requirements within stipulated timelines. NewSpace’s Abhimanyu Naval Collaborative Combat Air Vehicle, selected by the Indian Navy under the Ministry of Defence’s Innovations for Defence Excellence iDEX scheme, represents another significant achievement. This AI-enabled stealth drone is designed to operate as a loyal wingman alongside carrier-based fighters such as the MiG-29K and Rafale-M, with its first flight anticipated in 2026.
3. Airbound
Airbound represents one of India’s most remarkable entrepreneurial stories in the drone sector, founded in 2020 by Naman Pushp when he was just 15 years old. Now 20 years old, Pushp has built Airbound into a technologically sophisticated drone delivery startup that has raised over $10 million in total funding. The company’s most recent funding round in October 2025 brought in $8.65 million in seed funding led by Physical Intelligence co-founder Lachy Groom, with participation from Humba Ventures, existing investor Lightspeed Venture Partners, and senior leaders at Tesla, SpaceX, and Anduril.
Airbound’s technological innovation centers on its ultra-light, blended-wing-body aircraft using a tail-sitter design where the drone sits vertically and launches upright like a rocket. This unique configuration, combined with a carbon fiber frame, aims to deliver parcels at up to 20 times lower cost than conventional methods and significantly cheaper than existing drone delivery systems. The aircraft uses a blended-wing-body shape with two propellers rather than the more common quadcopter configuration, eliminating the need for additional propellers and heavy moving parts. This design approach improves aerodynamic efficiency over conventional quadcopters by avoiding propellers that disrupt airflow over the wing, thereby maintaining a higher lift-to-drag ratio and reducing the thrust needed to stay aloft, making forward flight significantly more energy-efficient.
The current version of Airbound’s drone weighs 3.3 pounds and carries a payload of up to 2.2 pounds. The startup is developing a second version designed to support a 6.6-pound payload while weighing just 2.6 pounds itself, with a prototype expected to be ready and flying by mid-2026 and production targeted for the first quarter of 2027.
The aircraft is powered by lithium-ion batteries instead of the commonly used lithium-polymer battery packs, a strategic choice driven by lifecycle economics. Lithium ion batteries typically have a cycle life of 500 to 800 cycles, whereas lithium polymer lasts for around 100 to 200 cycles, meaning the battery replacement costs, which represent the biggest operational expense for drone deliveries, are substantially reduced over the operational lifetime of the aircraft.
Airbound’s business model targets ultra-low-cost deliveries, with the drone currently costing $2,000 to manufacture and approximately Rs 24 (around $0.27) per delivery to operate. The startup has set an ambitious goal to reduce delivery costs to below Rs 5 (roughly $0.05) by the end of 2026, which would make drone delivery economically competitive with traditional logistics for a much wider range of products.
The company operates with a team of 50 people and has begun pilot programs with a private hospital to demonstrate its capabilities in healthcare logistics. Airbound’s long-term vision extends beyond India, with plans to scale to one million deliveries per day domestically before entering the United States market within three years. The startup is actively engaged with regulators including India’s Directorate General of Civil Aviation to obtain the necessary approvals to commence commercial flight operations.
4. The ePlane Company
The ePlane Company is pioneering urban air mobility in India through its development of electric vertical take-off and landing flying taxis designed to revolutionize passenger commutes and cargo transport. The startup’s flagship product, the e200x, is engineered to enable up to 10 times faster passenger commutes compared to ground transportation, addressing the critical challenge of urban congestion that costs Indian cities billions in lost productivity annually. The aircraft can fly at a cruise speed of 160 kilometers per hour for a range of 200 kilometers, making it suitable for intracity travel and short intercity connections.
Founded with the vision of making urban air mobility a practical reality in India, The ePlane Company raised $5 million in 2022 to support its initial development efforts. The startup achieved a major milestone in November 2024 when it raised $14 million in its Series B funding round, led by Speciale Invest and Antares Ventures, with participation from Anicut, Micelio Mobility, Naval Ravikant, and Java Capital. This substantial funding round provides The ePlane Company with the resources needed to develop and certify its manned aircraft, with flight testing scheduled for mid-2025 progressing toward eventual commercial operations.
The ePlane Company’s approach to urban air mobility emphasizes safety, regulatory compliance, and practical operability in Indian urban environments. The development of electric vertical take-off and landing aircraft requires solving complex engineering challenges across aerodynamics, propulsion, battery energy density, flight control systems, and autonomous operation capabilities. The startup’s focus on certification demonstrates its commitment to meeting the highest safety standards required for commercial passenger operations, a critical factor in gaining public acceptance and regulatory approval for urban air mobility services.
The company’s vision extends beyond simply building aircraft to creating an entire ecosystem for urban air mobility including vertiports for takeoff and landing, air traffic management systems for coordinating multiple aircraft, maintenance facilities, and pilot training programs. In 2024, The ePlane Company partnered with drone manufacturer IdeaForge to scale up its unmanned aerial vehicle technology and drive innovation in the drone space, leveraging synergies between the electric vertical take-off and landing technology applicable to both passenger aircraft and cargo drones. This strategic partnership enables The ePlane Company to access IdeaForge’s extensive experience in regulatory compliance, manufacturing scale-up, and operational deployment while contributing its innovative propulsion and flight control technologies.
5. Marut Drones
Marut Drones has established itself as a leading agricultural drone technology company, specializing in precision agriculture solutions that help farmers optimize crop health, reduce input costs, and improve yields through data-driven farming practices. Founded in 2019 by Prem Kumar Vislawath, Suraj Peddi, and Sai Kumar Chinthala, the Hyderabad-based startup has grown rapidly to become one of India’s most prominent agri-tech drone companies. Marut Drones raised $6.35 million across three funding rounds, with its most recent Series A round in October 2024 bringing in $6.2 million from impact investor Lok Capital, valuing the company at Rs 173 crore.
The startup’s product portfolio encompasses both hexacopter and quadcopter drones optimized for agricultural applications including precision spraying, crop monitoring, soil health analysis, and mosquito eradication. Marut Drones’ flagship products, the Agricopter designed for precision spraying and crop monitoring with intelligence capabilities, and the Hepicopter optimized for long-range delivery with heavy payloads, address the diverse needs of modern agriculture across different farm sizes and crop types. The company’s drones enable agriculturists to obtain detailed insights on soil health and nutrient levels, facilitating data-driven decisions about irrigation scheduling, fertilizer application, and pest management that can significantly improve resource efficiency and crop productivity.
Marut Drones has achieved impressive operational scale, growing to over 200 team members and deploying a fleet of 750 drones supported by more than 1,000 trained and certified drone pilots across 14 states in India. This nationwide presence enables the company to provide responsive service and support to agricultural customers across diverse agro-climatic zones. The startup operates Marut Drone Academy, a DGCA-approved pilot training organization that provides comprehensive training in drone operation, maintenance, and agricultural applications. The academy has played a crucial role in developing skilled drone operators and has actively collaborated with government initiatives including training women across India in operating agricultural drones under the Drone Didi scheme, which promotes women’s entrepreneurship in the drone sector.
The company’s strategic priorities for 2026 and beyond include developing advanced agricultural drones tailored to specific customer needs, expanding its channel partner network and service centers into Tier 2 and Tier 3 cities to better serve rural customers, establishing drone agriculture service hubs to offer Drone-as-a-Service with a partnership approach, and recruiting professionals across all verticals while fostering drone entrepreneurship.
Marut Drones plans to launch 17 new drone academies to train skilled professionals, enhance research and development efforts in partnership with leading institutions to create advanced applications like direct seeding and crop monitoring, and increase manufacturing capacity to 3,000 drones per annum. The company has set an ambitious revenue target of Rs 1,000 crore within the next five years, demonstrating confidence in the rapid adoption of drone technology in Indian agriculture driven by government subsidies and the proven economic benefits of precision agriculture.
6. Skye Air Mobility
Skye Air Mobility has established itself as India’s largest drone delivery company, operating at an impressive scale that sets industry benchmarks for autonomous logistics operations. Founded by Ankit Kumar, the company delivers over 200,000 monthly shipments in the National Capital Region and has recently expanded operations to Bengaluru and Mumbai, with the first phase of Mumbai’s residential drone delivery expected to commence in the first quarter of 2026. This rapid geographic expansion demonstrates Skye Air’s ability to navigate complex regulatory environments, establish operational infrastructure, and scale drone delivery services across India’s diverse urban landscapes.
Skye Air operates its flagship drone, Skye Ship One, which can lift 10 kilograms of shipment in a single flight and operate at speeds of 40 kilometers per hour. The company’s multirotor drone is IPX7 waterproof, enabling reliable operations even during Mumbai’s intense monsoon season when traditional delivery services often face significant challenges. The technological infrastructure supporting Skye Air’s operations includes advanced Skye-Pods for automated takeoff and landing, AI-based route optimization through Skye Unmanned Traffic Management systems, and coordinated drone corridors known as Skye Tunnel that enable safe and efficient high-density operations.
The company currently serves 27 pin codes in Gurugram, two each in Faridabad and Ghaziabad, and one in Bengaluru, offering deliveries in as little as seven minutes for urgent shipments. This ultra-fast delivery capability creates significant value for e-commerce platforms, food delivery services, and emergency medical supplies where speed is critical. Skye Air has raised $7.18 million across six funding rounds, with the latest being a $4 million Series A round in June 2024 that provides capital for geographic expansion and technology development. The company’s client portfolio includes major logistics players like Bluedart, DTDC, Shiprocket, Ecom Express, and SMILe, validating its technology and operational capabilities with established industry players.
Each Skye Air drone delivery saves 520 grams of CO2 emissions compared to traditional motorized delivery methods, demonstrating the company’s commitment to sustainable logistics while building competitive advantage through lower operating costs enabled by electric propulsion. Skye Air also operates two fixed-wing electric vertical take-off and landing models, StarLiner and Artemis, designed primarily for healthcare applications where longer range and higher payload capacity are essential. The company has successfully won ten government healthcare delivery tenders across India, positioning it to play a significant role in improving healthcare access in underserved areas through rapid delivery of medicines, vaccines, and diagnostic samples.
7. TechEagle Innovations
TechEagle Innovations stands as a pioneer in India’s drone logistics sector, having been founded in 2015 by alumni of the Indian Institute of Technology Kanpur at a time when the regulatory framework for commercial drone operations was still evolving. Based in Gurugram, the company specializes in on-demand drone delivery services with particular focus on healthcare products and supplies to rural communities where traditional logistics infrastructure is limited or unreliable. TechEagle’s early entry into the market and sustained focus on solving real-world logistics challenges has enabled it to develop deep expertise in long-distance autonomous flight operations.
The company’s flagship manufacturing achievement is the Vertiplane X3, a made-in-India hybrid electric vertical take-off and landing drone that represents cutting-edge indigenous technology. The Vertiplane X3 achieves a top speed of 120 kilometers per hour and can travel 100 kilometers on a single charge while carrying up to three kilograms of temperature-controlled cargo.
This temperature control capability is particularly crucial for delivering medicines and vaccines to remote areas where maintaining proper storage conditions throughout the supply chain can be extremely challenging due to unreliable electricity supply and lack of cold storage facilities. The drone’s hybrid electric vertical take-off and landing design combines the vertical takeoff and landing capabilities necessary for operating in areas without prepared landing strips with the efficiency and range of fixed-wing flight, offering the best of both worlds.
TechEagle’s technological approach emphasizes creating drones specifically optimized for India’s diverse operating environments, from dense urban areas where airspace is congested and landing zones are limited to remote rural regions with challenging terrain, extreme weather conditions, and minimal infrastructure. The company operates across both urban and remote areas with a commitment to zero carbon emissions, positioning itself at the intersection of technological innovation and environmental sustainability. This dual focus resonates strongly with government initiatives promoting both indigenous manufacturing and climate-conscious development.
The company’s expertise in long-distance drone logistics and its focus on healthcare and e-commerce deliveries have made it instrumental in numerous pilot programs and trials across various sectors. TechEagle has collaborated with government agencies, healthcare providers, and logistics companies to demonstrate the practical viability and economic benefits of drone deliveries in the Indian context. The startup’s proven track record in delivering practical solutions for challenging logistics scenarios, combined with its manufacturing capabilities for sophisticated hybrid electric vertical take-off and landing platforms, positions TechEagle as an important contributor to India’s drone ecosystem and a reliable partner for organizations seeking to integrate drone logistics into their operations.
8. FlytBase
FlytBase operates as a venture-funded technology enterprise that was incorporated in 2016 with the strategic intent to help enterprises automate and scale their drone operations through sophisticated software platforms. Unlike hardware-focused drone companies, FlytBase has positioned itself as a software and automation platform provider, enabling businesses to deploy and manage large fleets of drones without requiring deep technical expertise in robotics or autonomous systems. This software-centric business model creates opportunities to serve customers globally while benefiting from India’s competitive advantages in software development.
The company’s value proposition is built on a firm conviction in the commercial drone opportunity coupled with deep expertise in automation software, robotics, control systems, and machine intelligence. FlytBase is headquartered in Silicon Valley, California with significant development operations in Pune, India, enabling it to access both the technology innovation ecosystem of Silicon Valley and India’s deep engineering talent pool. The company serves customers across North America, South America, Europe, Japan, Australia, New Zealand, and Southeast Asia, building a truly global footprint driven by its intelligent, API-enabled, highly scalable software platform for unmanned aerial vehicles.
FlytBase’s platform enables enterprises to automate various aspects of drone operations including flight planning, autonomous execution, data collection, real-time monitoring, and post-flight analysis. The API-enabled architecture allows integration with existing enterprise systems, enabling drone operations to be incorporated into broader workflows such as inventory management in warehouses, security monitoring at industrial facilities, or inspection of infrastructure assets. This integration capability is critical for enterprise adoption where drones must fit into established operational processes rather than requiring completely new workflows.
The company has achieved significant recognition in the global drone ecosystem, winning the Global NTT Data Innovation Contest 2019 in Tokyo, Japan, which validated its technological innovation on an international stage. FlytBase graduated from the Cisco LaunchPad Accelerator Program in 2017, benefiting from Cisco’s mentorship, market connections, and validation. The startup was awarded the TiE50 Top-Startup award by TiE Silicon Valley, one of the world’s largest entrepreneurship organizations, demonstrating recognition from the global entrepreneurship community. These achievements have positioned FlytBase as a thought leader in drone automation and enterprise drone platforms, with the potential to capture significant market share as commercial drone adoption accelerates globally.
9. House Technologies (Dronearch Systems)
House Technologies, operating through its Dronearch Systems division, was founded in 2022 with a vision to address the critical need for indigenous drone technology specifically tailored for India’s defense and security forces. The company’s co-founder Shivam Gupta, a dropout from Delhi Technological University with a background in mathematical and computing engineering, leveraged his experience with other startups to establish House Technologies alongside a dedicated team including hardware expert Dilshad Habib from Jamia Millia Islamia and CFO Anshu Gupta. This founding team’s combination of technical expertise and business acumen has enabled the company to quickly establish itself in the competitive defense technology sector.
House Technologies identified a critical gap in the Indian defense market where there was significant lack of domestically produced, customizable drone technology tailored to meet the specific needs of Indian defense forces and security agencies. The existing market was dominated by foreign-made drones and products that did not fully align with the unique requirements of local defense operations, especially in terms of data security and adaptability to various mission profiles. This dependency on foreign technology posed risks to national security and limited operational efficiency, particularly given geopolitical tensions and the potential for foreign suppliers to restrict access to critical technologies or updates.
The company’s breakthrough came with the development of a Minimum Viable Product consisting of a micro-category surveillance drone featuring a proprietary video and data transmission system. One of House Technologies’ unique selling points is maintaining full control over drone systems and data transmission, eliminating vulnerabilities associated with third-party components and providing secure, reliable solutions where all data centers are located within India’s geographical boundaries. This approach resonates strongly with defense and security agencies that prioritize data sovereignty and protection against potential espionage or data breaches through compromised foreign components.
House Technologies’ drones are designed to meet the specific needs of Indian defense forces, supporting reconnaissance, surveillance, and security operations. The platforms are equipped with advanced features including integration with NavIC, India’s regional navigation satellite system similar to GPS, and strict compliance with data security norms required by defense forces. This integration with indigenous navigation systems provides operational independence from foreign satellite navigation systems that could potentially be denied during conflicts. The company has received funding from the NIDHI PRAYAS Fund, The Ciena and NASSCOM Foundation Program, and HDFC Parivartan CSR Grant, providing resources for continued research and development while validating the company’s technology and market potential through support from established institutions and corporate social responsibility initiatives.
10. BonV Aero
BonV Aero distinguishes itself as a pioneering logistics drone manufacturing company specializing in heavy-payload unmanned aerial vehicles engineered specifically for high altitudes and challenging terrains. The company’s deep-tech approach and intense focus on research and development set it apart in the Indian drone industry, addressing mission-critical requirements that conventional drones cannot fulfill. With a team of over 60 engineers and domain experts bringing more than a decade of combined experience in aerial mobility, autonomous drone technologies, and advanced aerospace systems, BonV Aero represents the cutting edge of indigenous heavy-lift drone manufacturing.
The company’s heavy-lift drones, with payload capacity up to 20 kilograms, are currently operationally deployed between 14,000 feet to 17,000 feet above mean sea level in some of India’s most challenging operational environments. BonV Aero has successfully demonstrated its 50 kilogram payload drone to the Indian Army at 6,500 feet above mean sea level, showcasing capabilities that extend well beyond commercial applications into defense logistics where the ability to rapidly resupply troops in mountainous border regions can be strategically critical.
This demonstration led to BonV Aero being selected by the Indian Army as a top venture in aerial logistics drones and receiving a grant of Rs 10 crore, validating both its technological prowess and strategic importance to national defense capabilities.
BonV Aero’s proprietary algorithm enables seamless drone operations in high-altitude environments including conditions with fog and snow, and extreme temperatures as low as negative 20 degrees Celsius. These capabilities are essential for operations in regions like Ladakh and Siachen where harsh environmental conditions severely limit conventional logistics while operational requirements remain constant. The propulsion system is specifically optimized for high-altitude operations where air density is significantly lower than at sea level, achieving desired torque and RPM with minimal energy consumption despite the challenging atmospheric conditions that dramatically reduce the efficiency of standard propulsion systems.
The company’s platforms feature fully autonomous operations with smart terrain-following capabilities that enable safe navigation through mountainous terrain, automatic return-to-home functionality if communications are lost or battery levels become critical, and emergency landing protocols that can identify safe landing zones and execute controlled landings in case of system failures. BonV Aero received the Next Gen Startup of the Year Award 2024, recognizing its technological innovation and market potential. The company continues to push boundaries in heavy-payload drone logistics for defense applications, disaster response where rapid delivery of emergency supplies to affected areas is critical, and commercial applications including delivery to remote infrastructure sites and scientific research stations in challenging environments.
The Future of India’s Drone Startup Ecosystem
India’s drone startup ecosystem stands poised for transformative growth driven by the convergence of supportive government policies, growing market demand across multiple sectors, and a vibrant community of innovative entrepreneurs willing to tackle complex technical and operational challenges. The approximately 526 drone-related companies including over 200 startups focused specifically on drone development create a competitive yet collaborative ecosystem where innovation flourishes and best practices rapidly diffuse across the industry. With 144 funded startups and 33 having secured Series A or later stage funding, the sector demonstrates healthy progression from early-stage ideation to scaled commercial operations.
The regulatory framework established through the Drone Rules 2021 has removed many bureaucratic barriers that previously constrained the industry, while the Digital Sky platform for simplified licensing and digital approvals has made it significantly easier for startups to obtain necessary permissions for testing and commercial operations.
The Production Linked Incentive scheme’s allocation of Rs 120 crore provides direct financial incentives for domestic manufacturing, while the reduction of GST to 5 percent in September 2025 improves the economic viability of drone purchases for commercial customers. The import ban imposed in February 2022 creates a protected domestic market that gives Indian startups time to develop competitive products without being overwhelmed by established foreign manufacturers who might otherwise leverage their scale advantages and mature supply chains.
The government’s allocation of Rs 540 crore for drone integration under the UDAN scheme to improve regional connectivity demonstrates strong policy commitment to building drone infrastructure and creating market opportunities for startups through government procurement and sponsored programs. These supportive policies, combined with India’s advantages in engineering talent emerging from world-class institutions, significantly lower manufacturing costs compared to developed markets, and proximity to major growth markets across Asia, position Indian drone startups to compete effectively not just domestically but globally.
The ten startups profiled in this article represent the vanguard of India’s drone technology revolution. From Raphe mPhibr’s military-grade platforms and NewSpace’s cutting-edge swarm technologies to Airbound’s ultra-low-cost delivery systems and The ePlane Company’s urban air mobility vision, from Marut Drones’ agricultural solutions and Skye Air’s scaled logistics operations to TechEagle’s healthcare focus, FlytBase’s enterprise software platform, House Technologies’ defense innovations, and BonV Aero’s high-altitude capabilities, each startup brings unique technologies and market positioning.
As the Indian drone market progresses toward the projected $23 billion valuation by 2030, these pioneering startups will continue leading the transformation, creating high-technology employment, developing valuable intellectual property, demonstrating Indian innovation capabilities on the global stage, and establishing India as a significant force in the global unmanned systems industry.
