Here is why China exports 1000 drones a day and India does not even produce 1000 a year
Srinath Mallikarjunan 17 August 2017
There was a genuine expectation that with the Bharatiya Janata Party (BJP)-led government coming in at the Centre, there would be an effort to have clear and simple rules that would enable any company to get on with it’s primary tasks (product development, and sales). Instead the time and energy of most technology companies continues to be wasted on figuring out “what the rules are”, with no clear answers available anywhere. 
 
Take a look at the drone industry and the problems it faces in India. I have highlighted the problems in various emails to myriad ministries, but there has been no effort to address them. It is worth noting that while India does not even produce 1000 drones a year, Chinese companies are exporting over 1000 drones a day. The largest company in this field, DJI is the world leader in consumer drones. This market domination by the Chinese has happened because it’s government did not actively sabotage it’s own industry by placing arbitrary restrictions on everything. This is what India does. Now in this season of heightened tensions with China, India is in an unenviable position of having no domestic drone of any significance and having to depend on a Chinese company, DJI, for commercial applications if and when the Indian commercial market is opened up. Primary problems faced by the industry are:
 
  • It is not possible to export drones from India without going through an inter-ministerial panel due to restrictions under the Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) list. This is completely unviable, in a rapidly evolving market where customers expect delivery in days not years
  • Sale of drones for commercial non-government applications is banned in India.
  • Government tenders have a very long gestation period (several years) and the proposals are framed very poorly, partly because the people framing such requirements have no idea of what is possible & what isn’t.
  • It is not possible to import components (motors, propellers, batteries) required to assemble a drone (even for demonstrations). When such components are imported, they invariably get seized by customs
  • The Directorate General of Civil Aviation (DGCA) is apparently working on draft guidelines for the last two years. They might take a few more years to release the same. (After all we live in a world without time!)
  • There is no clarity from the Department of Industrial Policy & Promotion (DIPP) on how to apply for a drone manufacturing license even though license seems to have been given to a couple of industries.
  • The drone industry is unlike any other industry. There is constant innovation, which requires testing and research and development (R&D). Otherwise the product becomes obsolete. Currently, flight-testing a drone always involves a risk of the product being seized.

 

Due to all of the above self-imposed constraints, an industry that could have been a multi-billion dollar industry generating employment for tens of thousands has been hobbled and India is in the unenviable position of having to use Chinese technology in critical applications in the future. All the points mentioned above have been mentioned in various communications with the relevant ministries for the last several years, but there seems to be no resolution in sight. Here is what needs to be done…

  • Ask companies involved in the production of unmanned aerial vehicle (UAV) avionics to register themselves with one agency in a simple registration process. Care should be taken that this doesn’t degenerate into a license/quota raj type system
  • These companies have to maintain records of parts (motors, propellers) that they import for either demonstration pieces, research or for salesman samples. 
  • Allow these companies to fly in vast tracks of vacant land available with various Universities and public sector companies spread all over the country.
  • Inform the customs of the above procedures so that items may be procured hassle free
  • Allow sales of complete units to only authorized buyers, with the requisite flying licenses.

 

The above steps will remove a large number of handicaps faced by industry. It is imperative that these steps are put in place immediately or the technology gap that needs to be overcome will be insurmountable. For the sales side, since the government has hobbled the industry for so long, the following incentives may be considered…

  • Companies with unique technologies and indigenous autopilots may be given exemption from goods and service tax (GST). They have been through enough without having to deal with this additional headache of classification etc. Besides, since most such sales will be business to business (B2B), there will be no net GST payable in any case.
  • Common facilities for small batch prototyping may be created and placed at the disposal of a pool of companies
  • Have a “safe list” of countries to which drones may be exported. If necessary, a geographical lock feature may be placed on the drones.
  • UAV companies should be treated on par with research organizations and avail research grants currently available only to Universities. This is necessary because the domestic market has been closed as a matter of govt policy.
 
Globally the drone industry is moving ahead at a rapid pace and unlike other sectors, it is industry that is at the forefront of innovation. It is high time that our industry is unshackled so that we may compete on a level playing field.
 
(Srinath Mallikarjunan is founder of Unmanned Dynamics, an advanced guidance system company)
Comments
Deepak Narain
8 years ago
Govt should proceed as suggested in this article.
MIKE
8 years ago
In India technology is limited to common people like us. If we had access to it then we might develop from scratch and even export. Alash! this can't be because it is not available in the market. They may be developed by a handful of people in this vast population with lots of talented peoples. Moreover for a starter nothing is not cheap when it comes to raw materials, equipments and machines all of this is so expensive in India. I guess manufacturing companies are trying to make profit rather than developing India. Now its time to realised ourself that we are sourrounded by enemies. You may survive with your wealth creation. But what about the rest of population? In such atmosphere we had no option to shunt our aspiring ideas and thoughts. We can do much better than them.
suneel kumar gupta
8 years ago
Besides government's farsightedness, issue of labour is critical. Due to labour laws, people ,inspite of so much unemployment, people don't work to their full potential.
SuchindranathAiyerS
8 years ago
India is nowhere because of it's "Reservations" (Divide to Rule) and Extortion (Shake the Pagoda Tree) Constitution and laws.

In 1947, India had a tryst with disaster. The still unfolding colonial "Shake the Pagoda Tree" tyranny, and grotesque "Divide to Rule" Constitution. Aptly described by Bandit Jabberlal Neckscrew in the immortal words of his Harrow Master exiting the Staff Toilet: as, "Not fully, but substantially".

The Government of India Act (1935) that was modified by Sir Maurice Gwyer for Nehru and Ambedkar to plagiarize into the Indian Constitution envisaged that the Governor General representing the British Crown would attend to Defense, National Security and Foreign Policy, while the Council of Princes (now known as Rajya Sabha) would maintain stability and cultural continuity. But with their abolition, India has enjoyed a vacuum in all these spheres since 1949.


One symptom is that India looks to foreign countries for leadership and initiatives in these areas while focusing on Loot, Rape, and Persecution (including reservations) within the Country instead of on becoming powerful.

The British were ruthless. They did everything the Nazis did before the Nazis did. But they won and the winners write History. But they did have certain redeeming features which is why they were able to get so many natives to build their empire for them. One such quality was a deep sense of fair play that had been inculcated in them since the days of Elizabeth the First, built on the much earlier foundation of the Magna Charta which not only helped them escape the rigours of proletariat revolutions that took place in Russia, or France but build a powerful nation.


This is why, to weaken and enslave India, they induced the enshrinement of inequality under law, exceptions to the rule of law and "many nations" in India's Constitution, thus taking away their principal contribution that had stolen away men's hearts and minds from the Sultans and the Rajas, to risk and sacrifice their lives for them. In other words, with this one deft stroke of Constitutional legerdemain, they returned India to what they had found. A patch work quilt of raping, looting petty potentates.


They accelerated the transformation by inspiring their stooges who ruled India after them with "Social Engineering" and turned the pyramid upside down to put power in the hands of those least capable and keep it away from merit and integrity. Thus it is that we see India today, a law less Nation in a constant state of Civil War, reduced to 135 out of 172 countries (and below Sub-Saharan Africa) in the Global Human and Social Development Index (UNDP – 2015) and 143 rd out of 172 countries in internal Peace and Stability (UNDP – 2015) , home to 30% of the World’s poor (World Bank 2016) and with the highest number of Bomb Blast in the World 2016) pushing Iraq to a lowly second place with just half as many; in just 67 years.

When the British pushed "reservations" as part o their divide and rule policy into Mysore through the Maharaja, the Diwan, Sir M. Vishweshwaraya who has done more for ALL the people of Mysore than any man save Sir Mark Cubbon, resigned.


The words in his resignation letter were as prophetic in its way as Sir Winston's prognosis for India. "Only the very best competence and integrity can help raise the wretched of the earth to the status of human beings. There is no short cut. You cannot elevate the wretched and expect them to do the work that the most talented and competent find arduous" Today Mysore has been more thoroughly trashed than any other state of the Indian Union because there was so much more to trash.

Debashis Basu
Replied to SuchindranathAiyerS comment 8 years ago
Fascinating
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