UAS – A Prospective Economic Growth Engine

Drones are expected to create huge employment potential and will turn out to be powerful contributor to India’s Gross Domestic Product and will be a prospective economic growth driver

Maj Gen G Shankarnarayan (Retd)

Opinion
UAV-Heron
Representative image

Much has been spoken about and written on the emerging markets for Unmanned Aerial Systems (UAS) based on its potentials for commercial as well as non commercial exploitation in India. In fact the veracity of these systems in the military domain has steadily gained ascendance as an indispensible instrument of state craft spanning the entire spectrum of operational art from strategic surveillance and pinpoint target acquisition and destruction, to operational and tactical usage in contact engagement with the adversary.

On the commercial front this technology has gained pre-eminence in operational time and cost reduction, the two single most important factors, for corporate profitability. Adjunct to these economic pointers, it stands to reason that India is expected to be one of the fastest growing markets for drones and UAVs in the years to come. According to the global market intelligence and advisory firm, BIS Research, India’s UAV market is expected to reach US$885.7 million by 2021. It is predicted that this growth will be coupled with new employment opportunities that will cut across sectors and industries particularly in manufacturing, services and training sectors.

However what is critically important is to explore the manner in which this exponential demand/ growth paradigm will be addressed both by the government and the industry. In this context it may be pertinent to recall that Ministry of Civil Aviation (MoCA), through Directorate General of Civil Aviation (DGCA), the regulatory body, has been instrumental in policy formulation besides evangelising guidelines for its implementation. The recent draft gazette notification on the Unmanned Aircraft System Rules, 2020 is actively under consideration for approval by the Central Government.

In addition the Government has taken measured steps to accord case by case exemption to the provisions of the CAR Serial 3 Air Transport Series X Part 1 to facilitate commercial operations within the parameters and guidelines stipulated therein which de-facto permits the use of non No permission – No Take-off (NPNT) compliant drones until the operationalisation of the Digital Sky platform. The natural fallout is an explosive demand for drone based services that concurrently accentuates demand for trained pilots.

Government has taken measured steps to accord case by case exemption to the provisions of the CAR Serial 3 Air Transport Series X Part 1 to facilitate commercial operations within the parameters and guidelines stipulated therein which de-facto permits the use of non No permission – No Take-off (NPNT) compliant drones until the operationalisation of the Digital Sky platform

A dispassionate evaluation of the current exemption status tends to suggest that so far Flying Training Organisations (FTO) are concerned, the exemptions are conditional and requires compliance to a host of inter departmental approvals before any formal training can take place. Whereas exemptions on the use of drones for COVID sanitisation, anti locust operation, oil & gas pipeline inspection, agricultural spraying activity , railway track mapping and solar & power grid inspection do not have any such elaborate conditional compliance requirement except that the drone operation will be executed under the supervision of local authorised authority requisitioning the service. Thus these exemptions have given the much needed stimulus to the UAS industry in general and drone operations in particular to make an earnest beginning leading to a wide scope for commercial drones operations albeit within the ambit of public safety.

Having stated the obvious, the next big issue is in the realms of its implementation. Reading between the lines one can gleam a few anomalies. It may be prudent to demystify these inherent concerns since it affects the entire commercial drone operations. The provisions of the CAR as well the UAS rules 2020 clearly states that drones above two kg fall within the small category and therefore require a UIN as well a trained licensed pilot to operate. While the need for a UIN has been temporarily condoned, based on the exemptions given, the operator permit and possession of a valid drone pilot license still stands. Therefore all operators have to mandatorily undergo a training capsule under the aegis of FTOs, who have been authorised to impart drone training, to enables them to apply for a DGCA license.

DGCA on its part has to verify these credentials of training certified by the FTO where upon the individual shall be eligible to appear for an online drone pilot examination. On successful qualification in the exam and being in the acceptable medical category, the individual is issued the license. Therefore it is incumbent that DGCA should also gear up to this process for issuance of license so as to be in sync with the FTOs churning out drone pilots across the country. But the moot point is that this process cannot follow traditional method of licensing warranting physical presence at the DGCA. Instead FTOs should be authorised to certify the prospective candidate for the drone flying proficiency as per laid down standards followed by a digital online process of documentation and examination and issuance of the licence by post on the lines of Pan card/ credit cards. However, considering the magnitude of the task involved, it may be prudent to outsource the task of online certification and licensing.

The next fundamental issue is the obvious reference to the government’s declaration that the Digital sky platform has geo-fencing coverage of almost 70 per cent of India’s land mass into green and yellow zones for drone operation. It implies that every time a drone operator wishes to fly a drone it shall be mandatory to obtain a flight permit through the digital sky platform. Therefore it is obvious that such permissions can be sought only if the drone is NPNT compliant. Hence in the larger sense these exemptions have little meaning for any commercial operations except for the operations of FTOs. However in the interest of the industry the exemption offered to FTOs can kick start the training process in right earnest. Given these metrics it may be worth the while to make an assessment of the projected requirements of drone pilots in the foreseeable future and its concomitant impact on the economy.

The global commercial drone market is expected to grow at a CAGR of 16 per cent to 18 per cent. This is based on the premise that drones are being seen as an effective tool in enhancing business operations besides saving precious time and cost

The global commercial drone market is expected to grow at a CAGR of 16 per cent to 18 per cent. This is based on the premise that drones are being seen as an effective tool in enhancing business operations besides saving precious time and cost. While a few developed nations are torchbearers, the rest of the world is soon catching up. In fact drone services are seen as a game changer in under developed third world countries to provide access to communities that remain isolated. Africa, Australia, Canada, South America and Asia have become hotbed of activity for drones contributing to further research and growth. Further the focus on technology driven solutions in drone applications is gradually making them an indispensible component of business. Thus commercial drone operations cuts across various sectors like construction, education, law enforcement, media and entertainment, precision agriculture, surveying , mapping, inspection and monitoring.

A PwC report suggest that the market value of drone-powered solutions in addressable industries is infrastructure 45.2bn, agriculture 32.4bn, transport 13.0bn, security 10.5bn, media & entertainment 8.8bn, insurance 6.8bn, telecommunication 6.3bn, and mining 4.3bn. The Indian Commercial Drone Market is the fastest growing drone market in the world, having increased in size exponentially since the legalisation of drone policy in 2018. The UAV sector holds tremendous opportunities and, has the potential to contribute almost four to five per cent to India’s GDP, due to its multiplier effect. A conservative estimate pitches the Indian UAV market to reach US$50 billion over the next 15 years. (FICCI-EY report 2019). Given these predictions the current usage of drones spanning several industries is infrastructure 35.5 per cent, agriculture 25.5 per cent, transport 10.2 per cent, security 8.2 per cent, media 6.9 per cent, insurance 5.3 per cent, telecommunication five per cent, and mining 3.4 per cent.

Drone
A file photo

It may be interesting to note that commercial use of UAVs was first recorded in the early 1980s in Japan, where they were used to spray pesticides on rice fields. Since then, drone technology has advanced significantly and has evolved applications for all major industries. In fact drones have effectively provided operating models in key sectors like Power, Railways, Road transport, Telecommunication, Agriculture, Urban development, Traffic management, Disaster management, Forest and wildlife, Healthcare, Security and Mining. They have enabled the capture of real-time, highly accurate data, in the most cost-effective manner. Some of the key functions in each of these industry verticals are Power • Power line and pylon inspections, solar farm security and surveillance • Solar panel inspections, Railways •Track inspections• Power line inspections• Yard security and surveillance, Telecommunication • Telecom tower inspections Agriculture • Crop health monitoring • Soil health assessment • Improved resource utilisation • City survey • Improved urban planning • Project monitoring • Project quality assessment Urban development Traffic management • Road surface condition monitoring • Improve traffic management • Traffic feedback Disaster management • Real time surveillance • Search and rescue • Delivery of essential goods Forest and wildlife • Wildlife conservation • Managing human wildlife conflict • Forest protection • Epidemic control • Cleanliness & hygiene • Healthcare delivery Healthcare Homeland security • Real time surveillance • Security planning • Drugs/Narcotics detection Mining • Mineral scouting • Managing encroachment • Contract monitoring. Needless to say that as the industry finds newer applications the growth is only a progression that will lay heavy demand on trained pilots.

In terms of employment opportunities the drone industry holds tremendous promise. An examination of the construction industry to access the requirement of skilled drone pilots is revealing and can be used as a benchmark. According to the Economic Survey 2018-19, construction industry employed a workforce of 50 million in 2018, and is projected to employ 67 million by 2022-24 (Planning Commission). However, over 80 per cent of those employed in the sector are either unskilled or minimally skilled. Therefore drones have the power to bring in a shift in this paradigm.

The Indian Commercial Drone Market is the fastest growing drone market in the world, having increased in size exponentially since the legalisation of drone policy in 2018. The UAV sector holds tremendous opportunities and, has the potential to contribute almost four to five per cent to India’s GDP, due to its multiplier effect

The demand for drones on construction sites is expected to trigger an exponential increase in the demand for skilled manpower in drone operations. This will include professionals for data collection (drone pilots) and data processing (with data scientists who use information collected by drones in various ways). The Construction Industry Development Council (CIDC) has conducted a study to assess the impact of drones on employment generation across 13 sub-sectors in the construction and maintenance industry. The study estimates the manpower requirement for people with UAV operating skills to be approximately 2.5 lakhs in the coming years, with highways, roads, bridges and housing taking the lead.

According to the CIDC, future deployment of UAV technology and its greater acceptance in a number of different applications across a diverse stakeholder base has the potential to boost the demand for professionals who are skilled in using this technology. Considering this as a rough yardstick it can be proportionately extrapolated to other industries based on the percentage drone usage stated above. This in effect translates into infrastructure 2.5 lakhs, agriculture 1.78 lakhs, transport 0.71 lakhs, security 0.57 lakhs, media 0.48 lakhs, insurance 0.37 lakhs, telecommunication 0.35 lakhs, and mining 0.23 lakhs totalling up to 7.01 lakhs by 2025. It is in this context that there is a need to evaluate the training infrastructure, available as on date.

Based on the approval given, there may be approximately 12 to 15 FTOs who will finally be permitted to carryout training as per DGCA guidelines. Each FTO can be expected to have a training capacity of 15 to 20 pilots per month amounting to approximately 250 pilots in a year. Therefore the total training capacity pan India may be in the region of 3600 to 4000 pilots per year. This is woefully inadequate to meet the demand projected. The obvious answer is to expeditiously approve the CAR authorising RPTO to conduct similar Drone Training.

It is no denying the fact that drones are expected to create huge employment potential and will turn out to be powerful contributor to India’s Gross Domestic Product (GDP). Drones, as we know and understand them, are set to unleash endless opportunities by enabling sectors to meet the growing demand. Today, this potential is uniquely positioned in terms of indigenous manufacturing capability contemporary to global standards. Consequently, the discernible benefits of using drones have begun to attract several players. Therefore, their efficiency and speed should ultimately translate to business efficiency and employment generation.

Furthermore, as consumption of drones grows, the demand for qualified and trained professionals who can handle these drones increases exponentially. Hence it is for the government to make the policy framework user friendly and foster a sense of confidence in ease of doing business. There is no doubt that the Indian Drone Industry will soon surpass and resonate throughout the global business arena and become the Drone Hub of the world.

-The writer is a former GOC-Indian Army and presently a Strategic Consultant & Principal Advisor. Views expressed are personal and do not necessarily reflect the views of Raksha Anirveda