India, Sept. 9 -- The Indian drone market is positioned for exceptional growth, estimated at USD 2.22 billion in 2023 and projected to reach USD 10 billion by 2035. The GST reform is the latest and, in many ways, most impactful component of a larger framework designed to foster a self-reliant drone ecosystem.

Before the recent reforms, the Indian drone industry was hampered by a complex and inconsistent tax structure. The previous GST framework created significant ambiguities and compliance challenges for manufacturers and operators.

Under this regime, drones with integrated cameras were subjected to a high GST rate of 18%, while personal drones could be taxed as high as 28%. A lower rate of 5% was applicable only to drones without came...