• India
  • Jun 24

Govt eases policy related to export of drones for civilian uses

The government has eased norms for the export of certain categories of drones, meant for civilian-end uses, with a view to facilitating the outbound shipments of high-tech items.

The Directorate General of Foreign Trade (DGFT) said the export of drones/Unmanned Aerial Vehicles (UAVs) of certain specifications would be allowed under the General Authorisation for Export of Drones (GAED), a one-time general licence valid for three years.

What is the purpose of relaxation of norm?

• All kinds/types of drones/UAVs were earlier controlled/restricted for export under the SCOMET list.

• Exports of items under the Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) list are permitted only against an export authorisation issued on this behalf.

• This list deals with the category of items that are subject to specific regulations due to their potential dual-use nature, meaning they can have both civilian and military applications.

• SCOMET licence was required for the export of such items and the industry was facing challenges to export drones with limited capability which are only meant for civilian use.

• Based on the wider consultations held with all the stakeholders including seeking industry comments on the policy, the SCOMET policy of drones meant for civilian use has been amended through a DGFT notification to simplify and liberalise the policy for these exports.

• The export of Drones/UAVs not covered under the specified categories in SCOMET list and capable of range equal to or less than 25 km and delivering a payload of not more than 25 kg (excluding the software and technology of these items) and meant for only civilian end-use, will now be subject to GAED.

• This would further facilitate the drone/UAV manufacturers/industry to export drones with ease, thereby facilitating ease of doing business and promoting export from India.

• It will allow Indian drone manufacturers to access larger markets and compete on a global scale, ultimately boosting economic activity.

Directorate General of Foreign Trade (DGFT)

• Directorate General of Foreign Trade (DGFT) is an attached office of the ministry of commerce and industry. Right from its inception till 1991, when liberalisation in the economic policies of the government took place, DGFT has been essentially involved in the regulation and promotion of foreign trade. 

• Keeping in line with policies of liberalisation and globalisation and the overall objective of increasing exports, DGFT has been assigned the role of a “facilitator”. The transition has been from prohibition and control of imports/exports towards promotion and facilitation of exports/imports, keeping in view the interests of the country.

• This Directorate, with headquarters at New Delhi, is headed by the Director General of Foreign Trade. 

• It assists the government in formulation of Foreign Trade Policy (FTP) and is responsible for implementing the Policy and schemes under FTP with the main objective of promoting India’s exports. 

• Further, it is responsible for implementation of Foreign Trade (Development and Regulation) Act, 1992 and Rules and Regulations notified thereunder. 

• The DGFT also issues authorisations to exporters and monitors their corresponding obligations through a network of 24 regional offices.

Additional read:

PLI scheme for drones, drone components

The Union government approved a production-linked incentive (PLI) scheme for drones and drone components with an allocation of Rs 120 crore spread over three financial years. The drones and drone components manufacturing industry may see an investment of over Rs 5,000 crore over the next three years.

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