India's Union Budget 2026 to Introduce ₹10,000 Crore Drone Incentive Plan Benefiting Key Companies
India's Union Budget 2026 is set to introduce a ₹10,000 crore incentive scheme under the 'Drone Shakti' initiative to enhance domestic drone manufacturing. The program will feature a two-tier subsidy system aimed at improving cost-competitiveness and mandates a significant domestic content requirement to reduce import reliance. Key beneficiaries include Zen Technologies, Paras Defence and Space Technologies, and IdeaForge Technology, which are focusing on innovative drone applications and technologies.
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India's Union Budget 2026 is expected to launch a ₹10,000 crore multi-year incentive scheme aimed at bolstering domestic drone manufacturing under the 'Drone Shakti' initiative. This initiative will feature a two-tier subsidy system providing 10-15% on capital expenditures and a similar percentage linked to manufacturing output, aiming to enhance cost-competitiveness for locally made drones.
The program mandates 50-60% domestic content to reduce reliance on imports. Three companies poised to benefit are Zen Technologies, Paras Defence and Space Technologies, and IdeaForge Technology. Zen Technologies is shifting towards anti-drone systems, while Paras Defence is developing hydrogen-powered and anti-drone technologies.
IdeaForge is focusing on dual-use drone applications, despite facing recent revenue declines. The budget support is anticipated to significantly increase the market for these companies and boost domestic production capabilities.
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