Will Drones Disrupt the Logistics Industry in India?

12 Oct, 2021

While drone delivery has been a buzz in the global space for the last few years, is India all set for the take-off? As per the 2019 projections, India’s drone market was expected to grow up to $885 million by 2021. Where do we stand today? Let’s delve into the current scenario to understand the space better.

Currently, the drone market in India is preparing itself to get better equipped with the investments and regulations. There have been certain challenges due to which the adoption has been a little slow as compared to the market expectations. The investments that were required for this market to mushroom have not flown in due to regulation constraints. Before we jump into the challenges, let’s take a look at the potential of drone deliveries.

An ever increasing demand for timely medical and healthcare supplies couldn’t stress the importance of drones more. Drones are looked at as the future of last mile delivery and several countries have already started levering the drone technology. In some countries, drones are not only used in the medical supply chain but also for food deliveries. Top international supply chain services companies have realized the potential of drones in delivering cargo as well. Tapping into the versatile use-cases of drones would be the next big thing to watch for in the Indian landscape.

India has been conducting its trials in various states now since regulations are in place. However, the drone operators are of the opinion that although the technology is present, in terms of framework and approvals, India has a long way to go. Some of the international drone companies have been looking forward to government approvals to fly their drones in India but the process flow has been extremely lengthy for them. This poses as the major concern for these companies to operate their drones in India. Authorities in India are facing problems in the drones’ regulatory framework majorly due to the high population density in the nation.

Drones are believed to disrupt the logistical industry in the coming future if they could be used for carrying cargo. Many overseas companies have been experimenting with carrying loads and if these drones could be converted to cargo drones, it would prove to be a game changer for the logistics industry as a whole. Many Indian logistical experts and drone company owners in India are hopeful that the way things are progressing and evolving, cargo drones are no far from reality.

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