The National Association of Software and Service Companies (Nasscom) has questioned the need for the government’s proposed Civil Drone (Promotion and Regulation) Bill, 2025, saying it could undo the liberalisation achieved under the current regulatory framework.
What the draft Civil Drone Bill proposes
The Ministry of Civil Aviation released the draft Bill in September, seeking to establish a statutory framework for unmanned aircraft systems (UAS). The Bill is meant to replace the Drone Rules, 2021, and sets out provisions for:
- Registration and type certification of all drones, with no exemptions for small or hobby models.
- Mandatory safety and security features to be prescribed by the government.
- Compulsory third-party insurance for all drone operators.
- Criminal penalties for violations, including imprisonment of up to three years in some cases.
- Authority for law enforcement to detain drones and related equipment for up to seven days if violation is suspected.
- The Bill also introduces a compensation mechanism for drone-related accidents
Nasscom’s central argument is that there is “no clear justification” for a complete legislative overhaul. The industry body said the Drone Rules, 2021, together with the Bharatiya Vayuyan Adhiniyam, 2024, already provide a comprehensive framework for safety, accountability and oversight.
Instead of introducing a new statute, Nasscom argued, the government should focus on better enforcement of existing rules.
Illegal imports, unregistered operators, and unauthorized drone flights in restricted areas, it said, remain largely unchecked because of weak implementation by enforcement agencies.
“The need is not new legislation but better enforcement,” Nasscom noted in its submission.
What concerns industry the most
According to Nasscom, the proposed Bill could reverse India’s progress in simplifying drone operations. Its main concerns include:
- Exemptions for educational projects, hobbyists removed: The Bill removes earlier exemptions for nano drones, hobbyist models, and educational projects, forcing even students and researchers to obtain certification and registration.
- Criminalisation of minor offences: The framework prescribes imprisonment and criminal liability for procedural violations that may not involve safety risks.
- Lack of focus on innovation: Despite being titled a “promotion” Bill, it lacks provisions to support R&D, domestic manufacturing or export incentives.
Nasscom warned that these provisions could create uncertainty and discourage startups from entering the drone sector.
What the industry body recommends
Instead of scrapping the Drone Rules, 2021, Nasscom has suggested targeted amendments to strengthen enforcement and compliance mechanisms. Its proposals include introducing a graded penalty framework distinguishing between civil and criminal offences; establishing a drone claims tribunal for handling accident-related disputes; allowing digital levy and payment of penalties through online systems and so on.
Why this matters
India’s drone industry is projected to $USD 4.9 billion by 2030, growing at a compound annual rate of 44 per cent. Nasscom argued that the sector’s growth depends on regulatory certainty and ease of doing business.
The Ministry of Civil Aviation is yet to announce a timeline for finalising the Bill.
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