Business

GST rate cut to boost drone production in India: Naidu

Big Boost for India’s Drone Sector: Government Slashes GST to 5%

New Delhi, Sep 9: India’s drone industry just got a major lift from the Narendra Modi government’s latest GST reforms. Civil Aviation Minister Ram Mohan Naidu shared the exciting news on Tuesday, saying these changes will supercharge the country’s fast-growing drone ecosystem.

Picture this: earlier, drones with built-in cameras faced an 18% GST rate, while those for personal use got hit with a whopping 28%. But now, things are changing for the better. The new rules bring a flat 5% GST on all drones—no matter if they have integrated cameras or not, and whether you use them for business or fun. This move fits perfectly with the government’s plan to build a strong, safe, and globally competitive drone world, Naidu explained.

"This is a game-changer," the minister added. "It positions India as a top player in cutting-edge tech like drones. The uniform 5% GST gives everyone clear rules, cutting out confusing debates over classifications. Plus, flight simulators and motion simulators—key tools for training pilots—are now completely GST-free. This will spark more training programs across India, helping airlines and academies save big on equipment costs."

Why does this matter? Clear guidelines and lower prices mean more people and businesses will jump on the drone bandwagon. Think about agriculture, where drones can monitor crops or spray pesticides. Or sectors like petroleum and mining for inspecting pipelines, infrastructure for mapping sites, logistics for quick deliveries, and even defence for surveillance. Affordable drones will make all this easier and more efficient.

These reforms tie right into big initiatives like Make in India and Atmanirbhar Bharat, pushing for homegrown innovation. They promise to create jobs in drone manufacturing, assembly, software development, data analytics, and on-ground operations. As Naidu put it, the updated GST rules make the system more friendly for growth in aviation and tech like UAVs (unmanned aerial vehicles). Drones aren’t just a business boom—they’re a smart strategy for India’s future. This simplified setup will light up the drone sunrise sector like never before!

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Sheetal Kumar Nehra

Sheetal Kumar Nehra is a Software Developer and the editor of LatestNewsX.com, bringing over 17 years of experience in media and news content. He has a strong passion for designing websites, developing web applications, and publishing news articles on current… More »

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