Archive · 27 Dec 2025
India's 2026 Budget Push for Drones
The Indian government is planning to spend ₹10,000 crore over five years to help make drones in India.
This money will help companies set up factories and make drones cheaper.
Three companies, Zen Technologies, Paras Defence, and IdeaForge, are expected to benefit from this plan.
Zen makes parts and systems to stop enemy drones.
Paras makes special cameras and anti-drone systems.
IdeaForge makes drones for the military and other uses.
All three companies are working to make better drones and reduce India's need to buy parts from other countries.
The government wants more Indian companies to make drones and their parts locally.
In 2026, drone startups expect to grow more, get bigger contracts, and work more in defence, security, and civilian areas.
They also expect to use more local parts and better technology.
The Indian government plans to allocate ₹10,000 crore over five years to boost domestic drone manufacturing.
The scheme offers a two-tiered subsidy structure: 10-15% on capital expenditure and 10-15% on manufacturing output.
Zen Technologies focuses on anti-drone systems and has expanded through acquisitions to reduce reliance on imported components.
Paras Defence manufactures electro-optic cameras and anti-drone systems, aiming to lead the Indian market in these domains.
IdeaForge, the market leader in India's UAV market, develops drones for defence and civil applications, with a focus on extreme environments.
- Who
- Indian Government, Zen Technologies, Paras Defence, IdeaForge, Garuda Aerospace, IG Defence, Marut Drones
- What
- Announcement of a ₹10,000 crore incentive package for drone manufacturing and sustained growth in 2026
- When
- Upcoming Union Budget 2026
- Where
- India
- Why
- To scale domestic drone manufacturing, reduce dependence on imported parts, and support sustained revenue growth
- Budget Allocation
- ₹10,000 crore
- Scheme Duration
- 5 years
- Subsidy Structure
- 10-15% on capital expenditure and manufacturing output
- Domestic Content Requirement
- 50-60%
- Zen Technologies Revenue (H1 FY26)
- ₹332 crore
- Paras Defence Revenue (H1 FY26)
- ₹199 crore
- IdeaForge Revenue (H1 FY26)
- ₹54 crore
- IdeaForge Market Share
- 50%