India’s drone sector, once touted as a sunrise industry, is facing a period of turbulence as several startups struggle to secure adequate funding to keep operations afloat. In response, many of these companies are now turning to government-backed initiatives such as the NaMo Drone and Digital Drone Initiative (DiDi) scheme for crucial support.

The NaMo Drone and DiDi programs, designed to boost domestic drone manufacturing, promote innovation, and ease regulatory bottlenecks, are emerging as a lifeline for these ventures. Industry insiders reveal that startups are actively applying for subsidies, exploring partnerships with public sector bodies, and lobbying for further policy support to keep their projects viable.

Funding for drone companies has slowed significantly in the past year as investors adopt a more cautious approach, prioritizing startups with proven revenue streams and scalable models. This capital crunch is forcing smaller players to seek alternate funding sources, including government incentives, in order to sustain operations, pay staff, and continue product development.

Analysts argue that a stronger push from the government could help revive confidence in the sector. Schemes like NaMo Drone and DiDi offer subsidies for drone purchases by farmers, encourage public sector adoption for mapping and surveillance, and create opportunities for pilot training and skill development. This ecosystem support could help bridge the gap until private funding picks up again.

With applications ranging from precision agriculture and infrastructure monitoring to defense and logistics, drones hold vast potential in India’s economy. If the current wave of startups can weather this challenging phase with government assistance, the sector could be poised for renewed growth and innovation over the next few years, aligning with India’s ambition to become a global drone manufacturing hub.