The Rise of Drone as a Service (DaaS) in India’s Industrial Landscape
The industrial drone market is undergoing a quiet revolution. Shifted by rapidly expanding sectors like agriculture, logistics, mining, infrastructure, and energy, drones are no longer relegated to mere toys for surveillance and photography. Their evolution into mission-critical assets has enabled them to reap the full benefits of Drone as a Service (DaaS) a model that operates based on monetization on demand rather than selling the units directly.
Given India’s massive agrarian sections and ongoing projects tied to the “Digital India” mission, the country provides abundant fertile ground for DaaS startups. Government and private operations are swiftly adopting drones for various usages, including crop spraying in Punjab, land surveying in Jharkhand, tower inspections in Gujarat, and even drone deliveries in Hyderabad.
While the drone hardware receives attention, the gaps left in service delivery drones represent precision service drones. Backed by trained operators, dependable hardware, and data analytics, these startups are optimally positioned to respond to India’s booming industrial demands.
In this article, we will delve into the impact of DaaS on the future of Indian industry, identify high-value sectors, and offer guidance to startups on crafting sustainable business models grounded in meticulous feasibility studies and implementation strategies.
India’s Industrial Drone Landscape: Why DaaS is a Business Opportunity
There has been a positive shift in India’s policies regarding drones with the introduction of the Drone Rules 2021, which reduced operational requirements for drones and fostered local innovation. Government initiatives like the PLI scheme for drone and parts production, along with use-case-driven applications in agriculture, mining, and disaster management, have significantly stimulated supply.
Despite these developments, owning and operating drones, including training, maintenance, compliance with the DGCA, and data processing, remains prohibitively expensive for private users or small institutions. This creates an opportunity for the Drone as a Service (DaaS) model, which eliminates the need for capital investment for drone ownership.
Under this model, clients do not buy drones but hire them for specific tasks, completing them through remote piloting or automation. These tasks include:
- Agricultural crop spraying drone services and monitoring plant health.
- Conducting surveys of land parcels using LiDAR or photogrammetry in infrastructure.
- Logistics deliveries in remote or time-critical scenarios.
Also included are the inspection of solar farms, wind turbines, telecom towers, and pipelines.
The model is appealing as it both improves accessibility for end users while ensuring drone service operators a steady income. As demand increases, specialized startups stand to reap the most benefit by offering drone services instead of generic drone sales.
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Industries Where DaaS Startups Have the Potential to Thrive
Among all possible drone applications, these three verticals – logistics, agriculture and surveying and mapping – offer the most potential for scalable and recurring DaaS revenue models.
1. Agriculture and Crop Monitoring
India has 150 million hectares of farmland waiting to be ‘dronified’. Drones equipped with multispectral or thermal cameras can generate NDVI and other vegetation indices to monitor crop health. Moreover, precision aerial application of fertilizers and pesticides drone sprayed allows a reduction of 30-40% in chemicals used while improving yield.
Under programs like PM-Kisan Drone Yojana, government FPOs (Farmer Producer Organisations) incentivize contracting DaaS providers over owning drones themselves. This is beneficial for operators as it ensures a reliable client base.
Services include:
- Crop health diagnostics
- Acreage estimation and insurance verification
- Health monitoring
- Soil diagnostics
- Pesticide and nutrient spraying
2. Infrastructure and Land Surveying and Mapping
Infrastructure projects like roads, rail and mining now have a constant need for progress surveys, volume estimation, and topographical mapping which can all be done at a fraction of the cost and time using drones. Moreover, the SVAMITVA scheme—Survey of Villages and Mapping with Improvised Technology in Village Areas—creates an ever expanding opportunity for drone-based cadastral mapping.
High resolution aerial data is used by:
- The State Revenue Department for landrecord maintenance
- EPC contractors for monitoring the progress of the project
- Operators in charge of mining for measuring stockpile volumes
- Terrain mapping done by real estate developers
(Dronelife) describes how in India, the remote area delivery system is still emerging, but drones are being implemented for vaccine delivery, disaster relief, and even last-mile delivery in hard to reach places. The Telangana government along with Skye Air and Redwing, is showing how drones can be used to transport high-value items with their “Medicine from the Sky” initiative.
Some of the services offered include:
- Emergency shipment of medical supplies
- Manned drone shipping in hilly or island regions
- Goods transferred from one campus to another
Startups for drone as a service are now free to operate due to the new Digital Sky Platform simplifying drone flight and DaaS (Drone as a Service) granting approval for logistics focused operations with BVLOS testing.
Five-Year Indian Prospect: “DaaS Opportunity”
The Indian market for these industrial drones is set for explosive growth, spurred on by government spending on infrastructure, expansion of agri-tech, and private sector logistics trials.
| Year | Estimated Market Size for DaaS (INR Cr) | Key Sectors Driving Demand |
| 2025 | ₹1,100 | Agriculture, SVAMITVA, EPC |
| 2026 | ₹1,750 | Agri clusters, private mining |
| 2027 | ₹2,500 | Pan-India crop spraying, BVLOS |
| 2028 | ₹3,300 | Drone deliveries in healthcare |
| 2029 | ₹4,200 | Integration in logistics chains |
Once the DaaS models are streamlined and widely accepted, gaining clients and securing renewals will become more straightforward, especially in rural and infrastructure-related areas.
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How to Build a DaaS Startup: Setup, Services, and Operational Planning
Launching a Drone-as-a-Service business requires deep planning spanning three different areas: technology operations, law regulations, and the business model itself.
- Select your core industry first. For instance, in crop spraying, one would need agricultural drones with large payload capacity; for survey operations, drones equipped with GPS, RTK, 3D photogrammetric cameras, and advanced software capable of real-time data processing. Drones used for logistics need endurance, thermal safety for battery powered systems, and in some cases, hybrid engines.
- Second, operations must comply with the DGCA’s methods of operations. Drones pilots have to undergo training through DGCA-approved institutions. All drones have to be registered and geo-fenced by UIN (Unique Identification Numbers). They need to be flight planed and submitted as per the Digital Sky. Airspace zones (green, yellow, red) are also important to understand.
- The business model also requires taking into account equipment sourcing, AMC (Annual Maintenance Contracts), the insurance policy, the payment of the pilot, DGCA fees, software mapping licenses, and customer acquisition. Billing can be done on a per acre, flight hour, delivery, or contract basis.
- Finally, differentiating value propositions such as reporting and data handling boosts value and client loyalty which includes generating MDVI reports, 3D maps, inspection logs, and thermal readings.
Although services are largely dependent on geographic locations, there is potential for a DaaS franchise model or regional clusters where a central office manages a network of certified operators in other states.
Why a Techno-Economic Feasibility Report (TEFR) is Crucial for Drone Startups
On the surface, drones may appear to be quick and easy to deploy, but the DaaS business model is far from informal operations. Institutional clients, especially government agencies, banks, or industrial buyers, will only work with providers who meet their standards for demonstrated operational capability, financing strategies, and regulatory compliance.
In this case, a bankable Techno-Economic Feasibility Report (TEFR) stands as a cornerstone.
An effectively structured TEFR includes:
- Mapping opportunities in your area and industry
- Technical designs and procurement for the drone equipment
- A training and licensing pathway for the pilots
- Comprehensive operational plan: service cycles, flight hours, payloads, and service cycles
- Modelling revenues and performing breakeven analysis
- Cash flow forecasts including various scenarios for profit
- Profitability forecasts with different growth scenarios
- Compliance checklist for DGCA and MoCA
Startups doing TEFRs have higher chances of getting loans under MSME schemes, PLI-linked vendor support, or even backing from startup incubators than those approaching banks, investors, or government bodies directly.
How NPCS Supports DaaS Entrepreneurs with Project Feasibility and Planning
Niir Project Consultancy Services (NPCS) offers customized Market Survey cum Detailed Techno-Economic Feasibility Reports for DaaS startups, tailored to sector, geography, and business scale. These reports help entrepreneurs navigate:
- Drone selection and sourcing based on sector needs
- Financial modeling (CAPEX, OPEX, ROI, DSCR)
- Licensing, flight permissions, and pilot training compliance
- Operational planning and manpower requirements
- Revenue forecasting based on acres mapped, hectares sprayed, or deliveries made
NPCS ensures that each report includes manufacturing process (if relevant), service flow, raw material/utility mapping, plant layout (for drone hubs), and financials aligned with funder expectations.
With a TEFR from NPCS, startups can confidently approach:
- SIDBI and state startup funds
- Drone PLI component suppliers or OEM partners
- Public sector clients looking for drone-based contractors
Conclusion: The Sky Is Not the Limit—It’s the Market
India is on the cusp of a drone services revolution. As industries, farmers, and governments look for faster, cheaper, and greener solutions to complex ground challenges, drones offer unmatched efficiency and scale. But the future will not be won by drone manufacturers alone. It will belong to the operators—the service providers who combine technical skill with industrial problem-solving.
For founders exploring DaaS, success depends on more than enthusiasm. It requires technical planning, financial rigor, and a professional blueprint that funders and clients can trust.
That blueprint is a Techno-Economic Feasibility Report—your drone startup’s launchpad into industrial service delivery.
Thinking of launching your DaaS venture?
Niir Project Consultancy Services (NPCS) can help you with:
- Drone startup feasibility reports for agriculture, survey, and logistics
- Operational layouts, compliance checklists, and cost projections
- Bank- and investor-ready documentation to unlock capital and contracts
Let us help you take your drone idea from flight test to full-fledged business.
