Make in India Drone Battery 2026 — PLI Scheme, MSME & Domestic Manufacturing

Published: May 2026  ·  By: Leolus Energy Editorial Team  ·  Read time: 7 min

India's Drone Battery Market in 2026

India's drone sector has undergone a structural transformation since 2021. The Drone Rules 2021, PLI (Production Linked Incentive) scheme for drones and drone components, and the Kisan Drone programme have collectively created one of the world's fastest-growing civil drone markets.

This growth is directly driving demand for domestically manufactured drone batteries. The agriculture sector alone is projected to deploy 100,000+ drones for crop spraying by 2027 — each requiring 4–6 battery packs with regular replacement cycles. The numbers are significant:

• 100,000 agriculture drones × 5 batteries per drone = 500,000 battery packs at initial deployment
• At 300-cycle replacement intervals, annual replacement demand of 300,000–400,000 packs at full scale
• Defence, surveillance, and delivery drone sectors add an equal volume of demand

The challenge: until recently, virtually all high-performance drone batteries in India were imported — primarily from China. PLI and Make in India policies are designed to change this.

PLI Scheme for Drones and Drone Components

The Production Linked Incentive (PLI) scheme for the drone sector, notified in September 2021, provides financial incentives for domestic drone and component manufacturers. Key aspects:

For drone battery manufacturers, PLI eligibility requires meeting value addition thresholds — meaning a significant portion of the battery's value must be created within India. This is where semi-solid state technology creates an additional advantage: the higher value-per-unit of semi-solid state packs means PLI incentives are proportionally larger.

Kisan Drone Programme — Agriculture Battery Demand

The Kisan Drone initiative, supported by the Indian Council of Agricultural Research (ICAR) and state governments, provides subsidies of up to ₹10 lakh for farmer groups and cooperatives to purchase agriculture drones. The subsidy covers drone hardware — and indirectly stimulates demand for spare battery packs.

Key battery implications of the Kisan Drone programme:

• Volume demand: With 15,000+ Kisan Drones deployed by end of 2025 and targets of 100,000+ by 2027, battery replacement volume is substantial
• Domestic preference: Government programmes increasingly require or preference Make in India components — directly benefiting Indian manufacturers
• After-sales ecosystem: Creating a demand for locally available drone batteries to avoid import lead times and customs delays

Defence Indigenisation — The Premium Market

India's defence drone battery market is arguably more valuable than the agriculture segment in revenue terms. Defence indigenisation policy (IDDM — Indigenously Designed, Developed and Manufactured) mandates that defence drone procurement increasingly favour Indian-manufactured components.

Leolus Energy's defence battery capability — custom 12S packs with specialised BMS, cold-temperature operation down to -20°C, and semi-solid state safety profile — directly addresses defence procurement requirements.

Why Semi-Solid State is the Right Technology for Make in India

India's manufacturing ecosystem faces a strategic choice in drone batteries. Standard LiPo/Li-ion battery manufacturing is a highly commoditised, China-dominated market where Indian manufacturers would compete on cost alone — a difficult position.

Semi-solid state battery manufacturing represents a genuine technology differentiation opportunity:

• Emerging technology: Global supply chains are still forming — India can compete at the frontier, not as a follower
• Higher value per unit: ₹25,000–₹60,000 per pack vs ₹8,000–₹15,000 for commodity LiPo — PLI and MSME incentives are more impactful at higher values
• Safety advantage: Indian regulatory environment is increasingly requiring safety certifications for drone batteries — solid-state chemistry has a structural advantage
• Export potential: Semi-solid state technology has export potential to Southeast Asia, Middle East, and Africa — markets where Chinese imports are facing increasing scrutiny

MSME Support for Drone Battery Manufacturing

Leolus Energy Private Limited is MSME registered. MSME registration provides several advantages for drone battery procurement:

• Government tender preference: MSME manufacturers receive price preference and quota reservations in government procurement
• Kisan Drone supply chain: Agriculture ministry supply programmes preference MSME components
• SIDBI and other financing: Access to specialised MSME lending for capacity expansion
• Credit guarantee schemes: CGTSME coverage for working capital — enables faster delivery capacity

What to Look for When Buying Make in India Drone Batteries

Not all "Made in India" drone battery claims are equal. Questions to ask:

1. Where are the cells manufactured? — A battery assembled from imported Chinese cells is not equivalent to one manufactured with Indian cells. Ask for country of origin for cells and BMS
2. Is the manufacturer MSME registered? — Verifiable via Udyam portal
3. What value addition percentage is domestically created? — Relevant for PLI compliance and government procurement
4. Is there a domestic warranty and service team? — Import-assembled batteries often lack after-sales support
5. What is the technology roadmap? — Semi-solid state investment demonstrates serious domestic R&D commitment