Draft law could send Indian drone sector into a spin

If you’ve been anywhere near India’s drone ecosystem lately, you’ve probably sensed the tension in the air. The Ministry of Civil Aviation’s Draft Civil Drone (Promotion and Regulation) Bill, 2025 has landed like an unexpected thunderstorm on what was, until recently, a sky full of optimism.

For an industry that finally began spreading its wings after the 2021 Drone Rules loosened the shackles, the new draft has triggered a collective, justifiable anxiety. The draft bill proposes stricter registration requirements, mandatory pilot certifications, and hefty penalties – including imprisonment ranging from three months to three years. It also gives authorities the power to confiscate drones for various violations.

To be fair, the government’s motives are not difficult to understand. Security agencies have raised alarms about the proliferation of unregistered and often imported drones being used near sensitive zones, critical infrastructure and public gatherings. But key players and entities like The National Association of Software and Service Companies (Nasscom) and the Drone Federation of India have flagged problems with the draft and suggested amendments.  Major law firms which analysed the draft also have raised concerns.

In Kerala, major players say there is a need for a regulatory framework as unregulated players have been operating across the country, mostly by importing Chinese made drones. But they say even as this problem needs to be tackled, the proposals in the current form could act as a deterrent to innovators and startups.

Shifting Sands: India’s drone regulations have swung wildly over the past few years. In 2018, rules were so restrictive that even basic experimentation became nearly impossible as dozens of papers had to be filed. Meanwhile, countries like China had actively encouraged private drone innovation, giving its startups a massive jumpstart.

The 2021 liberalisation had led to spurt in activities and drone companies began to mushroom. Even investors were beginning to dip their toes in the sector. But the proposed new regulations could close the door on all that. 

It proposes that all drone operators get a unique identification number, insurance worth up to 2.5 lakh rupees and certified drone pilot licence  before they can operate one, all of which were exempt for drones below 2kg  till now. Moreover, the penalties proposed in the draft include impounding of materials in case of suspicious activity, an ambiguous definition that could make any would-be startup founder think twice.

The drone community wasn’t expecting this sharp turn. Especially as this came just a week after the government slashed GST for drone manufacturers to a flat 5 percent, down from the earlier 18–28 percent range. The message from the tax cut was clear: go build, innovate, scale.

India today has over 100 certified drone manufacturers, spanning logistics, agriculture, defence and remote sensing. Many of these firms took off only after the 2021 rules removed the bureaucratic clutter. So, the new draft has caused more than just heartache.

Call for Clarity: CEO of KSPACE, G Levin sees value in the intent behind the draft but highlights the missing pieces: “I think it is a good initiative. But the accompanying rules on design, quality standards, certification etc need to be made without delay.”

He also stresses the need for a 3D spatial map so operators know where they can fly: “Licensed parties must be allowed to operate drones within the safe flying zone. For yellow and red zones alone specific clearance can be mandated.”

It’s a simple point, and an important one. The problem right now isn’t over-regulation; it’s regulation without a navigational map. Without clearly demarcated airspace, innovators risk being punished for mistakes they couldn’t even see coming. And that fear is what threatens to dampen the excitement among Kerala’s young drone builders.

Regulatory Lab: Governments across the world struggle to keep pace with technological development as  rules often act as impediments to innovation and ideations. But India can learn from examples other countries have set in such cases, says MP Rajasekharan, head of Kochi-based TechBharat Aviation and an expert in ATC, airspace management and safety systems.

He believes India needs a smarter, more collaborative approach: “India needs regulatory labs where all stakeholders sit together and shape policies to keep pace with technologies instead of rolling out draft bills that catch the industry by surprise.”

These aren’t theoretical suggestions. He points to Dubai’s UAE Regulations Lab, where academia, industry, government and security agencies sit together to evaluate risks, run experiments, and co-design rules that evolve with technology.

Different Strokes: Such forward looking government vision remains a mirage in India, but at least a better coordinated action between different ministries would be a good start. A quick look at the draft gives a feeling that it is misaligned with earlier commitments from ministries promoting India as a global drone hub by 2030.

Also, it would be good to remind New Delhi that our big neighbour to the north, China, had already put in place a “low altitude economy” policy. Beijing has brought all economic activities conducted using drones and electric vertical take-off and landing (EVTOL) aircraft in airspace below 1,000 metres under this policy.

While other countries like the United States and European nations also have regulations for drone operators, most allow hobbyists and R&D activities carry on without complicated regulations.

Hopeful Wait: Lt Cdr Arun Sivapalan, President & COO of AXL Drone in Kochi says the draft seems to treat drones the same way aviation standards regulate commercial aircraft. “The civil aviation ministry seems to have applied the same safety standards that regulate civil aviation jets, where any change in structure goes through stringent rules.”

For a young, dynamic industry where customers often request customised drone prototypes, this is simply unworkable. If every minor alteration means restarting the licensing process, innovation becomes impossible.

Despite the alarming clauses in the draft, Sivapalan remains optimistic: “I am hopeful better sense will prevail as different stakeholders have given their input and officials will consider them and change some of the clauses that look ominous for drone startups now.”

The civil aviation ministry had called for feedback on the draft and the sector has answered with depth and urgency. What happens next will decide whether the country continues to ascend in this space or finds its ambitions grounded by its own rulebook.

Agnikul war chest to boost future plans

Agnikul Cosmos is back in the headlines, this time after raising about 150 crore rupees in a fresh funding round. The startup, co-founded by Srinath Ravichandran and Moin SPM, says the new capital will accelerate its work on reusable launch architecture and fast-track development at the private launch site ISRO is building at Kulasekarapatnam, near Tuticorin. Reading that, one can’t help but sigh – Kerala’s own space park, KSPACE, announced in 2022, is still waiting for a permanent home.

Now, more on the interstellar visitor 3I/Atlas. Indian scientists have also captured images of 3I/Atlas using the Physical Research Laboratory (PRL) 1.2 m telescope at Mount Abu, Rajasthan. They observed a bright coma and, using spectrum analysis, found different forms of carbon molecules being emitted by the comet. Nasa also recently released more pictures and held an online meeting to explain the significance of each. But some social-media users didn’t take kindly to their blurry pictures and demanded better results. No wonder Indian space scientists keep away from such outreach efforts and stick to press notes.

Kerala gets a game creation school

Game development enthusiasts in Kerala have something to look forward to. Tiltedu and Datsi School for Storytellers have announced plans to launch GameCraft Pro, a one-year professional programme in game design and development beginning January 2026 at Datsi’s Trivandrum campus at the Kinfra Film & Video Park. Their aim is to offer a practice-based programme combining game design, storytelling, and technology. Selected students will spend three months on a capstone project developing original game concepts ready for publishing and investor pitches, say the organisers.

A million-dollar marketing ploy

Y Combinator–backed startup Multifactor has developed a new kind of “password manager” built for humans and AI agents, and to prove its safety they made their real corporate bank account (with 1 million US dollars in it) available to view, but not to transfer or do anything destructive. They even put up a billboard in Times Square advertising the link. The company, co-founded by Vivek Nair, a former CIA officer and PhD in Computer Science, and Colin Roberts, a former Nasa scientist and PhD in Mathematics, escaped without damaging its reputation or losing the money. But some Reddit users say the link was live only for a short time to test it properly, though reportedly a thousand people tried to transfer the funds.

Three cheers to the champs

Hats off to the ultimate aviator champs who just wrapped up a 5,400-kilometre marathon – and mind you, each one weighs barely 150 grams. Researchers tracking the Amur Falcon’s mind-blowing migration monitored three of them using satellite tags attached to the birds. From deep in the Manipur jungles, these falcons blasted their way from India to Africa, clocking nearly 1,000 km a day. Supriya Sahu, assistant chief secretary of Tamil Nadu’s Environment, Climate Change & Forests department, even posted regular updates on their route, calling it an epic journey – and honestly, that feels like an understatement.