Introduction

On September 16, 2025, the Government of India published the Draft Civil Drone (Promotion and Regulation) Bill, 2025 (‘Drone Bill’)[1] inviting suggestions from stakeholders and the general public. Through this Drone Bill, the Government seeks to revamp the existing regulation for Unmanned Aircraft Systems (‘UAS / Drones’) that are presently governed under the Drone Rules, 2021 and related amendments (‘2021 Rules’).[2] The new Drone Bill marks a paradigm shift for the civil UAS regulatory framework from delegated legislation to a separate standalone statute. Once enacted, it will replace the existing 2021 Rules.

The 2021 Rules were enacted under the erstwhile Aircraft Act, 1934[3] and are presently governed under its new parent legislation, the Bharatiya Vayuyan Adhiniyam Act, 2024 (‘Vayuyan Act’).[4] The Vayuyan Act replaced the Aircraft Act, 1934.

Existing Law – 2021 Rules

The 2021 Rules marked a landmark step that enabled widespread adoption of drones across different sectors on account of the simplified process of ownership and operations. It was considered a progressive legislation by startups and investors alike. In promulgating a “liberalised” set of rules, the government recognised India’s potential to be a global drone hub by 2030,[5] given the technology’s benefit to sectors like agriculture, infrastructure, surveillance, emergency response, transportation etc.

Drones were viewed as significant producers of employment and economic growth due to their ease of use and reach in India’s remote and inaccessible areas. However, the introduction of stricter penalties and several compliances under the Drone Bill may pose a setback to the progress made through the 2021 Rules.

Proposed Law – Drone Bill

The Drone Bill proposes a comprehensive legal framework for UAS in India, which will replace the 2021 Rules upon enactment. However, it makes registration and certifications mandatory, limits research and development exemptions, and introduces harsher penal provisions for imprisonment that ranges from three months to thirty six months. In addition, the authorities are also empowered to regulate on matters related to fees and tariffs which are purely commercial in nature.

Although the Drone Bill has enabling provisions to make exemptions, we have summarised the key industry impact basis the text of the Drone Bill as available.

Industry Impact

1. Applicability – The Drone Bill broadly applies to Indian and foreign citizens, as well as any person or entity involved in any stage of the drone ecosystem in India.[6] It also has extra territorial applicability for drones registered in India but owned or operated globally.[7] While the 2021 Rules did not expressly provide for extra territorial applicability, enforcement of penal provisions overseas would be challenging.
2. Exemption – Drones operated by the Indian Navy, Army, and Air Force were exempt from the Rules. The Bill takes this further by extending the exemption to the central armed police forces and other Indian armed forces—a welcome and pragmatic inclusion.[8]
3. Research and Development Exemption:  Under the 2021 Rules, research, development, and testing activities were exempt from UIN[9] and type certification requirements. The Drone Bill does not provide this exemption, thus creating significant challenges for manufacturers. Unless specific relaxations are notified, compliances will result in increased costs, as not all prototypes would be intended for sale, and the added burden could be particularly onerous for start-ups – potentially stifling innovation and slowing product development.
4. First Sale & Manufacturer Obligations – The Drone Bill stipulates the requirement of a UIN for ownership, which can be independent of operation. This implies that manufacturers may need to obtain a UIN even before the first sale.[10] Under the 2021 Rules, it could be argued that the UIN was tied to operations, allowing manufacturers to shift this obligation to operators – a flexibility that may no longer exist under the new regime.
5. Mandatory Safety & Security Features (MSSF) – All unmanned aircraft systems in India will be required to comply with Mandatory Safety and Security Features (MSSF).[11] While the Drone Bill does not yet specify these standards, compliance will become obligatory once they are notified or expressly exempted. Notably, the Drone Bill provides no exemptions / guidance based on drone weight or purpose. This warrants careful consideration, as uniform MSSF requirements should be calibrated to account for different categories of drones and their intended use cases while providing the necessary exemptions.
6. Remote Pilot Certificate – All drones would need to be operated by certified drone pilots unless exempted.[12] Currently, no exemptions have been provided for drone variants basis weight or purpose (such as research / development / recreation). As a result, even hobbyists and young enthusiasts flying drones for recreation in controlled environments may be required to obtain pilot certification.
7. Delegated Legislation – Several matters of drone operations are left to delegated legislation, which empowers the Government to make rules / exemptions on aspects such as drone classification, design and manufacturing standards, airworthiness standards, safety requirements, storage requirements, etc. However, more importantly, the Drone Bill empowers the government to regulate the economic aspects of drone services – including fares, tariffs and charges.[13] This marks a major policy shift and may restrict growth of the drone industry.
8. Excessive Penal Provisions – While the Drone Bill permits compounding of certain penal offences, it introduces harsher provisions where imprisonment ranges from three months to thirty six months.[14] Some of these penal provisions could get triggered for procedural non-compliances that may not result in any tangible loss, harm or injury. In contrast, the 2021 Rules primarily imposed monetary fines,[15] reserving imprisonment for serious violations such as unauthorised airspace use or carriage of dangerous goods.[16] Given the nascent stage of the drone industry, this punitive approach appears excessive and runs counter to the Government’s broader objective under the Jan Vishwas Act, 2023, which seeks to decriminalise offences.
9. Expert Examiner – A positive notable feature of the Drone Bill is the provision to designate an expert agency to advise courts and relevant authorities on drone-related matters.[17] This measure is expected to strengthen the enforcement framework by ensuring access to specialised technical expertise during adjudication and compliance proceedings.

Way Forward

In an effort to keep pace with rapidly evolving technology, the government has introduced multiple regulatory frameworks in quick succession – beginning with the Drone Rules, 2021, followed by the Bharatiya Vayuyan Adhiniyam Act, and now the proposed Drone Bill. While the intent is to strengthen governance, the introduction of a new framework with significantly higher compliance requirements could pose challenges for stakeholders, especially since the 2021 Rules were widely welcomed for their industry-friendly approach.

This raises an important question: Is a standalone Drone Act necessary? An alternative approach could be to introduce necessary / additional compliance obligations and penalties under the existing legal framework. The Drone Rules, 2021, read with the Bharatiya Vayuyan Adhiniyam, 2024, and the General Clauses Act, 1897,[18] already empower the government to amend or expand the Drone Rules. Incorporating new provisions through stakeholder consultation would have enabled a smoother transition while preserving the liberalised regime that has supported industry growth. Against this backdrop, the need for an independent enactment appears debatable.

---

[1] Draft Civil Drone (Promotion and Regulation) Bill, 2025, available at Press Release:Press Information Bureau.

[2] Drones Rules, 2021.

[3] Aircraft Act, 1934.

[4] Bharatiya Vayuyan Adhiniyam Act, 2024.

[5] Press Release:Press Information Bureau.

[6] Draft Civil Drone (Promotion and Regulation) Bill, 2025, Section 2.

[7] Draft Civil Drone (Promotion and Regulation) Bill, 2025, Section 2(1)(e).

[8] Draft Civil Drone (Promotion and Regulation) Bill, 2025, Section 2(2).

[9] Drones Rules, 2021, Rule 42; UIN means the unique identification number issued for registering an unmanned aircraft system in India.

[10] Draft Civil Drone (Promotion and Regulation) Bill, 2025, Section 6.

[11] Draft Civil Drone (Promotion and Regulation) Bill, 2025, Section 8(1).

[12] Draft Civil Drone (Promotion and Regulation) Bill, 2025, Section 23.

[13] Draft Civil Drone (Promotion and Regulation) Bill, 2025, Section 45(2)(aa).

[14] Draft Civil Drone (Promotion and Regulation) Bill, 2025, Section 27(8) and Section 34.

[15] Drones Rules, 2021, Rule 50.

[16] Drones Rules, 2021, Rule 42.

[17] Draft Civil Drone (Promotion and Regulation) Bill, 2025, Section 41.

[18] General Clauses Act, 1897.