NEW DELHI, 23 April 2025: India’s drone startup ecosystem is charting a new flight path—moving beyond defence into sectors like agriculture, healthcare, logistics, and industrial monitoring, as companies look for faster scalability and more predictable revenues.
While players like ideaForge continue to serve the defence sector, they’re also developing their own Drone-as-a-Service (DaaS) model targeting enterprise security and law enforcement. “Diversification is important, but we’re targeting new verticals within the Forces,” said co-founder Ankit Mehta, adding that defence remains their core clientele. ideaForge is also exploring expansion into the U.S. homeland security market, though recent tariff changes have slowed progress. The company reported a sharp 80.6% year-on-year drop in Q3FY25 revenue to ₹17.6 crore.
On the other hand, startups like Skylark Drones and Skye Air Mobility are actively steering away from defence contracts altogether, citing payment delays and policy unpredictability in government deals. “You have to pay your team on day zero, but get paid months later by the government,” said Pushkar Singh of Tremis Capital, an investor in Skye Air.
Private Sector, Not Government, Is Driving Drone Growth
Skylark Drones, led by Mughilan Thiru Ramasamy, works exclusively with private players like Tata Steel, Hindustan Zinc, L&T, and Reliance Infrastructure, building solutions for mining inspections, industrial surveillance, and infrastructure audits.
Skye Air Mobility CEO Ankit Kumar emphasized that less than 5% of their revenue comes from government work. The firm has made inroads in drone-based medical deliveries, including contracts with six AIIMS hospitals, but views these as springboards into private-sector logistics. Their rapid delivery project in Bengaluru—a 7-minute drone drop—is being replicated across Delhi-NCR.
Meanwhile, Dhaksha Unmanned Systems, owned by Coromandel Industries, is pushing drones into precision agriculture, particularly for pesticide and fertilizer spraying, shifting away from its earlier defence-heavy focus.
Investors Betting Big on Industrial Use Cases
VCs are increasingly bullish on industrial applications of drones in power, mining, oil & gas, and infrastructure inspection. “Drones make hazardous inspections safer and faster, and are key to predictive maintenance,” said Vipul Patel of IIMA Ventures, early backers of ideaForge and now investors in Nabhdrishti Aerospace.
However, regulatory roadblocks continue to dog the sector. Despite 86% of India’s airspace being classified as open (green zone), drones still face local-level bans, often grounded by security agencies or weather conditions. Skye Air Mobility reported 75 non-operational days last year due to national holidays, VIP movement, and weather issues.
Fragmented Regulation, Unclear Red Zones
The DGCA regulates national policy, but state governments and police enforce their own rules. Even cities like Mumbai recently banned drones temporarily (April 4–May 5), citing security concerns around public safety and VVIP movements.
Despite red zones occupying only about 6-7% of urban areas, their unpredictability hampers business planning. “In Gurgaon, 93% is usable, so we focus there,” said Skye Air’s Kumar.
While some legal experts like Tony Verghese of J. Sagar Associates warn of startup overvaluation and regulatory blind spots, others like Ramasamy of Skylark urge a pro-growth mindset. “Let’s first enable scale. The real risk lies with those who don’t follow the rules anyway,” he said.
