India Slashes Drone GST to 5% Under GST 2.0, Boosts Industry Growth

In a major boost to the drone sector, India has introduced a uniform 5% GST rate on all drones under the GST 2.0 reforms, down from up to 28%, regardless of configuration or use. Announced by Civil Aviation Minister Ram Mohan Naidu, the move aims to make drones more affordable and simplify compliance for manufacturers. The reform is expected to accelerate drone adoption across agriculture, mining, logistics, defense, infrastructure, and petroleum sectors. Additionally, GST exemptions on flight simulators will reduce pilot training costs, making certification more accessible. The policy is projected to spur growth in drone manufacturing, software development, data analytics, and field operations, generating significant employment. By streamlining taxation and supporting skill development, the government aims to position India as a global hub for drone innovation and production.