Strategic Intelligence: India Advances PLI 2.0 Framework to Establish Autonomous Drone Manufacturing Ecosystem

INTELLIGENCE ANALYSIS: The Indian government has finalized the Production-Linked Incentive (PLI) 2.0 scheme, marking a decisive step toward developing a self-sustaining domestic drone ecosystem. According to verified sources, the proposal has been formally submitted to the Finance Ministry, with an official announcement anticipated in the Union Budget for fiscal year 2027. This strategic initiative aims to reduce import dependency and position India as a global hub for drone technology and manufacturing. The enhanced PLI framework is designed to incentivize local production, foster innovation, and build a robust supply chain. Analysis indicates this move aligns with broader national security and economic self-reliance objectives, potentially catalyzing significant investment in advanced aerial systems. The formal budgetary inclusion underscores the government's commitment to long-term industrial policy, with implications for defense, agriculture, and logistics sectors. This development represents a calculated escalation in India's technological sovereignty efforts, with PLI 2.0 expected to create a competitive, indigenous drone industry capable of meeting both domestic and international demand.