India's Medical Drone Landscape in 2025

Dr Ruchi Saxena
Jul 20, 2025
7 min read

India's Medical Drone Landscape 2025: A Comprehensive Analysis

Executive Summary

India's medical drone sector is experiencing explosive growth, with the broader drone market valued at ₹57 billion in 2024 and projected to reach ₹123 billion by 2029 (1). The medical drone segment specifically is expected to grow at a remarkable 31.2% CAGR, making it one of the fastest-growing segments globally (2). This growth is driven by India's vast terrain, challenging infrastructure, and the government's push for equitable healthcare access through technological innovation.

Who is Doing What: Key Players and Their Roles:

Dedicated Medical Drone Service Providers

TECHEAGLE (Gurugram) focuses on Beyond Visual Line of Sight (BVLOS) medical corridors. Their hybrid e-VTOL drone "Vertiplane X3" completed India's longest medical delivery flight, transporting TB medicines from AIIMS Rishikesh to remote Uttarakhand areas (4). They won a competitive bid for a 104-kilometer drone delivery corridor with AIIMS Guwahati, the longest in India (4).
REDWING Labs (Bengaluru) specializes in long-range medical transport for challenging terrains, particularly in the northeastern states. They've completed over 700 flights delivering 12,000 medical consignments in Arunachal Pradesh under the "Medicine from the Sky" initiative (4). In Odisha's Rayagada district, they completed 2,300+ drone flights benefiting over 15,000 people in hard-to-reach areas (4).
TSAW Drones (Bengaluru) specializes in urban medical logistics, particularly time-sensitive deliveries. They completed 43,000+ healthcare deliveries and demonstrated oncological tissue transport between Karnataka hospitals in just 16 minutes versus 60 minutes by road (4).
Skye Air Mobility (New Delhi) leads India's medical drone delivery services with $5.7 million in funding from Chiratae Ventures and others (3). The company operates across Kerala, Maharashtra, Haryana, and Meghalaya, completing 2,150 flights covering 11,500 km and delivering 7,500 kg of medical supplies (3). In September 2023, they partnered with Cipla for drone-powered medicine deliveries in Himachal Pradesh, covering 50 kilometers in under 25 minutes (4).

General Drone Companies with Medical Applications

ideaForgeTechnology-inc dominates India's UAV market with a 50% share (5). While primarily focused on defense and surveillance, they've participated in select medical missions in Uttarakhand and CSR healthcare initiatives (6).
Garuda Aerospace Private Limited has a limited medical presence through their "Sanjeevani" drone partnership with Narayana Health for biomedical sample transport across 21 hospitals in Bengaluru (6).

Currently Operational Projects:

Paid Commercial Operations

Skye Air Mobility Cipla Partnership: Operational medical deliveries in Himachal Pradesh with defined commercial terms
TECHEAGLE AIIMS Guwahati: 104-km commercial corridor for medical supply delivery
TSAW Drones: Urban medical logistics services in Karnataka with hospital partnerships

Pilot and Research Projects

Medicine from the Sky Initiative ( World Economic Forum): India's largest medical drone research program with:
- Phase 1 (Telangana): 300+ vaccine delivery trials completed
- Phase 2 (Arunachal Pradesh): 650+ flights delivering 8,000+ medical products to 200+ patients (4)
AIIMS (All India Institute of Medical Sciences, New Delhi) Network: 15 All India Institute of Medical Sciences institutions identified for drone services, with trials completed in 12 institutes (7).

State-Level Pilots:

Odisha: SAMRIDH-USAID supported program with 2,300+ flights
Uttarakhand: TB medicine delivery supporting Pradhan Mantri TB Mukt Yojna
Kerala: Aster DM Healthcare trials from Kozhikode to Areekode
Rajasthan: TECHEAGLE 's tribal area medicine delivery trials

Current and Pipeline Policies

Implemented Regulatory Framework

1) Drone Rules 2021 (August 25, 2021): Liberalized India's drone sector with:

Simplified registration through Digital Sky platform
No flight permission required up to 400 feet in green zones
90% of Indian airspace designated as "green zones"
Elimination of security clearance for registration
No pilot license required for micro-drones (8)

2) Production Linked Incentive (PLI) Scheme: ₹120 crores allocated with 20% incentives on value addition for drone manufacturers (5).

3) Drone Amendment Rules 2024: Eliminated passport requirements for registration, accepting government-issued ID and address proofs (7).

Pipeline Policies

Drone Shakti Initiative: Encouraging drone-as-a-service (DaaS) solutions across sectors (5).

Healthcare Integration Framework: Ministry of Health and Family Welfare identifying specific institutions for drone services integration (7).

Import Restrictions: Complete ban on foreign drone imports (implemented February 2022) to stimulate domestic manufacturing (9).

Manufacturing Ecosystem

Current State

India's medical drone manufacturing ecosystem is service-heavy and manufacturing-light. Unlike defense drones, medical drone companies primarily adapt commercial platforms rather than developing purpose-built medical systems.

Component Landscape:

Bengaluru: Avionics and flight controllers
Hyderabad: Composite materials and airframes
Noida: Battery pack assembly
Pune: Cold-chain integration systems

Key Manufacturing Players:

ideaForge: Proprietary autopilot systems and BlueFire software stack
Paras Defence & Space Technologies Ltd.: ₹3,911 crore valuation with ₹300 million net profit in FY24 (5)
Throttle Aerospace Systems Pvt Ltd: Component manufacturing focus
General Aeronautics Pvt Ltd: Platform development

Challenges and Gaps

Subsystem Dependencies: Heavy reliance on imported components, particularly from China, despite government indigenization push (10).
Certification Framework: No specific framework for certifying medical drone subsystems or modules (10).
Scale Limitations: Most manufacturers operate at pilot scale rather than commercial production volumes.

Funding and Investment Landscape

Overall Drone Sector Funding

India's drone startups have raised over ₹12 billion ($140 million) since 2014, with 200+ drone startups in operation (**1 5)**.

Medical Drone Specific Investments

Skye Air Mobility: $5.7 million from Chiratae Ventures, Mount Judi Ventures, Venture Catalysts++ | India's 1st Multi-Stage VC , and Windrose Capital (3).

Government Funding: Significant support through:

PLI scheme allocations
SAMRIDH Healthcare Blended Finance Facility (USAID-supported)
State government pilot program funding

Corporate Partnerships: Direct investment from pharmaceutical companies like Cipla and healthcare providers like Narayana Health , Apollo Hospitals and Aster DM Healthcare.

Expansion Activities

Geographic Expansion

Skye Air Mobility: Expanding from initial Delhi operations to Kerala, Maharashtra, Haryana, and Meghalaya3.
TechEagle: Scaling from Rajasthan pilots to Uttarakhand and Assam operations4.
Redwing Labs: Expanding from Telangana base to Arunachal Pradesh and Odisha4.

Service Portfolio Expansion

Companies are diversifying from basic medicine delivery to:

Temperature-controlled pharmaceutical transport
Diagnostic sample collection and delivery
Emergency medical supply deployment
Bi-directional medical logistics

New Players and Market Entrants

Emerging Startups

Corporate Entrants still on the Horizon

Barriers and Facilitators

Key Facilitators

Government Support: Liberalised policies, PLI schemes, and import restrictions creating favorable environment (**8, 5)**.
Healthcare Need: India's vast terrain and infrastructure challenges driving demand (2).
Economic Viability: 31.2% CAGR making medical drones attractive for investment (2).
Regulatory Clarity: Clear guidelines through Drone Rules 2021 providing operational framework (8).
Regulatory liberalisation (digital permissions, green zones)
PLI incentives and state-level drone missions (e.g., Telangana, Maharashtra)
Public-health procurement by MoHFW, AIIMS network, state NHM
Blended finance (USAID SAMRIDH, World Bank credits) funnelling concessional capital

Major Barriers

Component Dependencies: Heavy reliance on imported subsystems limiting indigenization (10).
Skilled Workforce Shortage: Lack of trained professionals slowing adoption (5).
Regulatory Complexity: Multiple approval processes across aviation and healthcare domains (4).
Infrastructure Limitations: Insufficient charging networks and maintenance facilities in remote areas.
Cost Considerations: Higher per-unit costs compared to traditional delivery methods (6).
BVLOS approvals still case-by-case, slowing scale-up beyond pilots
Insurance gaps for high-value payloads; only three underwriters offer drone cover
Last-mile cold-chain reliability in > 40 °C summer flights; battery derating in Himalayas
Public perception on noise/ privacy in dense towns, requiring micro-routing and community “drone ambassador” schemes

Projections and Vision

Market Projections

Size Growth: Medical drone market expected to reach significant scale within India's projected ₹123 billion drone market by 2029 (1).
Unit Growth: From 10,800 drones in 2024 to 61,000+ by 2029 (1).
Economic Impact: The drone industry adding $23 billion to India's economy by 2030 (9).

Government Vision

Global Hub Ambition: India targeting to become a global drone hub by 2030 (9).
Healthcare Integration: Complete integration of drone services across India's healthcare system.
Manufacturing Leadership: Reducing drone component imports by 75% through Bharat Drone Stack initiative (10).

Key Stakeholder Visions

Ministry of Civil Aviation: Positioning India as drone manufacturing and services leader
Ministry of Health: Ensuring equitable healthcare access through drone technology
Private Sector: Scaling successful pilots to commercial operations
State Governments: Leveraging drones for rural healthcare delivery

Next Steps

Building a Framework and Operational Guidelines for Grassroots adoption of medical drones at different levels for different use cases for different stakeholders
Capacity Building program targeting medical institutions covering awareness, education, training, certification, processes, self-checks, authorization systems, governance, ethics, and audits
Facilitating discussions and concept papers for accelerating medical drones and air ambulances in urban, semi-urban and remote/ rural health systems for integrating with public and private healthcare network
A sentiment analysis from those who have worked with medical drones - tech teams, medical teams, and beneficiaries - to understand the real impact, potential and challenges in deploying, operating and scaling medical drones
Supporting design and implementation of policies that favour medical drones ecosystem - dedicated corridors, emergency response, payload insurance, automated flight permissions, standard design, operational and safety protocols
A deep understanding and analysis of the 'Need', 'Gap' and 'Opportunity' - what problem will medical drones actually and promisingly solve
What's the best way to reduce the costs of manufacturing and operations
Facilitating cross-border research and implementation partnerships

Conclusion

India's medical drone sector represents a unique convergence of technological capability, policy support, and market need. While the ecosystem is currently service-driven rather than manufacturing-focused, the rapid growth trajectory and government support suggest a maturing market poised for significant expansion. The success of current pilots and the entry of new players indicate a sector transitioning from experimental to operational, with the potential to become a global leader in medical drone services by 2030.

The key to success lies in addressing current barriers, particularly component dependencies and skilled workforce shortages, while building on the strong foundation of government support and demonstrated operational capabilities. As the sector matures, India's medical drone industry is positioned to serve both domestic needs and global markets, contributing significantly to the country's broader healthcare and technological objectives.

Disclaimer:

This article is written without any endorsements or sponsorships, by fetching and aggregating only the publicly published open information. If you find that I have missed out on something important or there is something else that can be included, or to be a part of my thought process for the future steps, please drop me a DM or write to me at hello@ruchisaxena.com. Thank you!