Tamil Nadu’s Roadmap for Low Altitude Economy Growth

Tamil Nadu is actively shaping its future as a hub for drones and advanced aerial mobility. The State Planning Commission is preparing a detailed infrastructure roadmap for the low-altitude economy (LAE). This emerging sector focuses on activities and businesses operating below 3,000 metres above ground. The state aims to leverage its existing aerospace and defence strengths to lead India’s LAE expansion.

About Low Altitude Economy (LAE)

LAE covers economic activities involving manned and unmanned aerial systems operating up to 3,000 metres. It includes drone operations and advanced air mobility technologies like electric vertical takeoff and landing (eVTOL) aircraft. Globally, LAE is seen as a transformative frontier with growth potential in logistics, surveillance, agriculture, and urban mobility.

Tamil Nadu’s Strategic Advantage

Tamil Nadu has a strong industrial base with aerospace and defence facilities such as HAL, BEL and DRDO. The state also hosts a 60-km automotive corridor nicknamed the ‘Detroit of Asia’. These factors provide a solid foundation for LAE infrastructure and innovation. Tamil Nadu established India’s first common drone testing centre at SIPCOT Vallam Vadagal with a Rs 45 crore investment.

Infrastructure and Ecosystem Development

The state is developing training, testing and operations facilities for beyond visual line of sight (BVLOS) drone flights at Chettinad Airport. The upcoming master plan will include vertiport development, drone corridors, certification pipelines, regulatory sandboxes and partnerships with industry players. International companies like Airbus, Boeing’s Wisk Aero and China’s EHang will participate alongside Indian startups such as Garuda Aerospace and Dhaksha.

Regulatory and Policy Support

India’s liberalised regulatory framework supports LAE growth. The Drone Rules 2021 and National UTM Policy Framework provide clear guidelines for drone operations. A $16 million production-linked incentive scheme promotes domestic drone manufacturing. Recent DGCA guidelines on eVTOL certification and vertiport standards demonstrate readiness for advanced air mobility technologies.

Market Growth and Global Trends

Globally, the LAE market is expanding rapidly. China’s market grew from $49 billion in 2021 to $65 billion in 2023 and may reach $450 billion by 2035. India’s drone market is smaller at $562 million in 2024 but is expected to nearly triple by 2033. Tamil Nadu aims to capture share of this growth through strategic investments and collaborations.

Collaborative Research Initiatives

Chennai-based Zuppa Geo Navigation Technologies, IIT Madras and the Indian Air Force’s 8 Base Repair Depot have signed an MoU for joint research. This partnership focuses on developing unmanned aerial and navigation systems for defence applications. It combines Zuppa’s UAV expertise, IIT Madras’s research capabilities and the Air Force’s operational experience.