As we approach Union Budget 2026, the UAV sector stands at a pivotal juncture. The Defence Procurement Manual 2025’s ‘build here, buy here’ emphasis has catalysed domestic manufacturing, where we are witnessing renewed momentum through increased defence allocations. To further catalyse India’s ambition as a global UAV hub, it is necessary that the budget addresses both opportunities and emerging regulatory challenges.

Announcement of INR 1 Lakh crore RDI fund signalled that the government is serious about strengthening R&D in the country and developing cutting-edge technologies and intellectual properties. As a deeptech organisation committed to serious in-house R&D, we welcome this move and urge the government to expedite the execution of the scheme and disbursement of funds in this and the coming financial year.

The drone domain today is utility-focused, where customers invest basis mission capability and reliability. While the recent Rationalisation and clarification on GST rates have helped to consolidate the progress that the industry has made and will make Indian products more competitive, the budget 2026 should expand the incentivisation framework for the industry through introducing the PLI 2.0 that rewards domestic component and UAV systems manufacturers to help with creating a robust domestic ecosystem that boosts greater assurances of cybersecurity and strategic autonomy.

While drones have captured the national narrative and remain at the center stage of modern-day defence strategy, it is imperative that the government plays the role of principal demand generator if we want to increase the adoption of the technology and make India a global drone hub. Introduction of Central Sector schemes across sectors like agriculture, urban planning, utilities, mining, etc., to make drones mandatory for security, governance & compliance, and infrastructure monitoring will be crucial to accelerate the adoption. It would be crucial to carve out dedicated budgets in both capital and revenue, procurements of various departments and functions of the government to boost drone adoption and technology building.

We hope that the Budget 2026 will make announcements on this front and position India as a defence technology exporter where ‘Make in India’ truly means ‘Made for the World’.

Ankit Mehta, CEO of ideaForge Technology