New Delhi, June 23, 2023: The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has taken a significant step in simplifying and expanding the policy for the export of civilian drones and unmanned aerial vehicles (UAVs) from India. This move aims to promote industry growth, facilitate high-tech exports, and position India as a global manufacturing hub for drones.
The revised policy, in alignment with India’s Foreign Trade Policy 2023, emphasizes the export of domestically manufactured drones and UAVs for civilian purposes while ensuring compliance with international obligations related to non-proliferation. Previously, all drones and UAVs fell under the controlled/restricted category 5B of the SCOMET (Special Chemicals Organisms Material Equipment and Technology) list, requiring a SCOMET license for export. This posed challenges for the industry, particularly in exporting drones intended solely for civilian use.
After extensive consultations with stakeholders and the public, the policy on drones and UAVs for civilian use under SCOMET has been amended through DGFT Notification No. 14 dated June 23, 2023. The new rules simplify and liberalize the export process for drones and UAVs meeting specific criteria. Drones and UAVs not falling within the specified categories of the SCOMET list, with a range equal to or less than 25 km and a payload capacity of no more than 25 kgs (excluding software and technology), solely for civilian use, will now be subject to the General Authorization for Export of Drones (GAED). This onetime general license is valid for three years.
One of the significant advantages of this policy change is the elimination of the need for drone manufacturers/exporters with GAED authorization to obtain a SCOMET license for each export shipment of similar civilian drones within the three-year validity period. This streamlines the export process and reduces the compliance burden on the industry. However, certain post-reporting and documentary requirements still apply to ensure transparency and adherence to regulations.
The new policy is expected to have a positive impact on the drone industry in India. It facilitates the ease of exporting drones, creating a favorable business environment and boosting exports from the country. Furthermore, this policy revision positions India as a global manufacturing hub for drones and UAVs, attracting startups and new manufacturers to explore global markets and expand their operations.
By enabling Indian drone manufacturers to access larger markets and compete globally, this policy change is set to stimulate economic activity and promote innovation in the drone and UAV industry. The relaxation of export controls on drones opens avenues for technological advancements and encourages the development of cutting-edge solutions.
Detailed procedures for obtaining the General Authorization for Export of Drones (GAED) for civilian drones and UAVs have been outlined in DGFT Public Notice No. 19 dated June 23, 2023. Interested stakeholders can refer to the notice, which is readily accessible on the DGFT website, for comprehensive information on the export process.
With the simplified and expanded drone export policy, India is poised to strengthen its position in the global drone market and foster growth in the domestic industry, ultimately contributing to the country’s economic progress and technological advancements.
