India’s drone startups raise $39M in 2025 funding—what’s driving investor confidence?

India's drone startup ecosystem is witnessing a surge in investor confidence, with $39 million raised across 13 funding rounds in 2025 alone, according to Tracxn data.

This growth is propelled by the government's supportive Drone Rules of 2021, which have created a favorable regulatory environment. Demand is rising across multiple sectors, including agriculture, defense, and industrial applications, fueling innovation and expansion.

Garuda Aerospace, a leading drone manufacturer, projects revenue of Rs 117.57 crore for FY25 and aims to more than double that to Rs 250 crore in FY26. The company also expects a net profit of Rs 23.69 crore in FY25, highlighting strong financial health.

Meanwhile, IG Drones has experienced a remarkable 330% revenue growth in FY25, reaching Rs 22.4 crore. The startup increased its manufacturing capacity fivefold to produce 1,000 drones and plans to more than double production in FY26.

The combination of government policy, sectoral demand, and a maturing innovation ecosystem is driving this rapid expansion. Investors are betting on the potential of Indian drone startups to revolutionize industries and capture significant market share.

"India's drone technology sector is experiencing explosive growth, fueled by favorable policies like the Drone Rules of 2021, increasing demand across diverse sectors from agriculture to defense, and a maturing innovation ecosystem," industry analysts note.

With robust financials and ambitious production targets, these startups exemplify the sector's upward trajectory and the growing trust of investors in India's drone technology future.

Indian drone startups have raised $39 million in 13 funding rounds in 2025, driven by favorable policies, rising demand in sectors like agriculture and defense, and a maturing innovation ecosystem. Companies like Garuda Aerospace and IG Drones report strong revenue growth and ambitious production targets, reflecting robust investor confidence.