NASSCOM Opposes New Drone Bill, Calls for Stronger Enforcement Under Existing Rules

The National Association of Software and Service Companies has questioned the requirement in the government’s proposed Civil Drone Bill, 2025, saying it could undo the liberalization achieved under the present regulatory framework.

What the Draft Civil Drone Bill Proposes

The Civil Aviation Ministry released the draft Bill in September, seeking to start a statutory framework for drones. The Bill will replace the Drone Rules, 2021 and sets out provisions for:

• Registration and Type Certification of all Drones, with no exemptions for small or hobby models.
• Compulsory safety and security features to be agreed upon by the government.
• Obligatory third-party insurance for all drone operators.
• Criminal consequences for violations, along with imprisonment of up to three years in some cases.
• Authority for law implementation to detain drones and related apparatus for up to seven days if a violation is suspected.
• The bill also establishes a compensation mechanism for drone-related accidents

Why NASSCOM says a New Law isn’t Needed?

NASSCOM’s central argument is that there is “no clear justification” for a complete legislative overhaul. The industry body said the Drone Rules, 2021, together with the Bharatiya Vayuyan Adhiniyam, 2024, already provide a comprehensive framework for safety, accountability and oversight.

Instead of introducing a new statute, NASSCOM argued, the government should focus on better enforcement of existing rules.

What the Draft Civil Drone Bill proposes

The Ministry of Civil Aviation released the draft Bill in September, seeking to create a statutory framework for drones. The Bill will replace the Drone Rules, 2021, and sets out provisions for:

• Drone Registration, with no exemptions for small drones.
• Mandatory safety and security features to be arranged by the government.
• Compulsory third-party insurance for all drone operators.
• Criminal penalties are levied for violations, including imprisonment of up to three years in some cases.
• Authority for law implementation to detain drones and related equipment for up to 7 days if a violation is suspected.
• The bill also introduces a compensation mechanism for drone accidents

Why NASSCOM says a New Law isn’t Needed

NASSCOM’s central argument is that there is “no clear justification” for a comprehensive legislative overhaul. The industry body said the Drone Rules, 2021, together with the Bharatiya Vayuyan Adhiniyam, 2024, already provide a comprehensive framework for safety, accountability, and oversight.

Instead of introducing a new statute, NASSCOM argued, the government should emphasize better implementation of current rules.

• Exemptions for Educational Projects, Hobbyists Removed: The Drone Bill eliminates earlier exemptions for nano drones, hobbyist models and educational projects, compelling students and researchers to get certification and registration.
• Criminalization of Minor Offences: The bill recommends imprisonment and criminal liability for procedural violations that may not include safety risks.
• Lack of Focus on Innovation: The bill lacks provisions to support R&D, domestic manufacturing or export incentives.

NASSCOM warned that these provisions could create uncertainty and discourage startups from entering the drone sector.

What are the Recommendations of the Industry Body?

Instead of scrapping the Drone Rules, 2021, NASSCOM has suggested targeted amendments to strengthen enforcement and compliance mechanisms. Its proposals include introducing a graded penalty framework that distinguishes between civil and criminal offences; establishing a drone claims tribunal to handle accident-related disputes; allowing the digital levy and the payment of penalties through online systems, and so on.

Why This Matters?

India’s drone industry will reach $USD 4.9 billion by the end of this decade, growing at a 44% CAGR. NASSCOM argued that the sector's growth depends on regulatory certainty and ease of doing business.

The Ministry of Civil Aviation is yet to announce a timeline for finalizing the Bill.