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Abstract<\/span><\/strong><\/span><\/p>\n Drones or Unmanned Aircraft Systems have tremendous potential to boost India\u2019s economy and generate employment. Drones can contribute to all sectors of the economy, whether in defense, agriculture, medicine, transportation, or any other industry. Drones\u2019 ease of use, reach, and adaptability help develop India\u2019s remote and inaccessible areas. It has been predicted that India will be a<\/span>global drone hub by 2030<\/a>. India\u2019s talent in information technology, frugal engineering and innovation, and large domestic market substantiate the abovementioned prediction.\u00a0<\/span><\/span><\/p>\n India has devised the Drone Rules, 2021 for civil drones. These Rules shall streamline the process of registering drones while ensuring safety and security in operation. However, legal gaps such as privacy, drone operations beyond Visual Line of Sight, legal liability of manufacturers, and other similar problems still need to be addressed. Thus, in this Blog Post, the author shall discuss the features of the Drone Rules, 2021 while analyzing its benefits and legal gaps. Additionally, the analysis will be comparative, followed by a conclusion highlighting the provisions that India can adopt.<\/span><\/p>\n <\/strong><\/p>\n 1. Introduction to Drone Laws in India<\/strong><\/span>\u00a0<\/span><\/p>\n On 25 August 2021, the Ministry of Civil Aviation (Indian Government) notified the<\/span>Drone Rules 2021<\/a> (hereinafter 2021 Rules<\/strong>) under the<\/span>Aircraft Act, 1934<\/a>, balancing innovation, security, and safety. Its foundation lies in<\/span>touch monitoring, trust, and self-certification<\/a>. On 11 February 2022, the<\/span>Drone (Amendment) Rules 2022<\/a> (hereinafter 2022 Rules<\/strong>) were passed, replacing the requirement of a \u201cremote pilot license\u201d with a \u201cremote pilot certificate\u201d as per Rule 2 of the 2022 Rules. Earlier, as per Rule 31 of the 2021 Rules, individuals had to obtain a valid remote pilot license issued by the Director General of Civil Aviation (DGCA) for operating a drone. Now, as per Rule 2 of the 2022 Rules, a remote pilot certificate by the authorized remote pilot training organization permits individuals to operate a drone. This resultantly simplifies the process of obtaining the requisite approval.<\/span>\u00a0<\/span><\/p>\n The salient features of the amended 2021 Rules are as follows:<\/span><\/p>\n A. Scope<\/em><\/strong><\/span><\/p>\n According to Rule 3(i) and 3(zb) of the 2021 Rules, \u201cdrone\u201d means an Unmanned Aircraft System (UAS), i.e., \u201can aircraft that can operate autonomously or can be operated remotely without a pilot on board.\u201d According to Rule 5 of the 2021 Rules, UAS are categorized into five systems qua their maximum all-up weight including payload: (i) nano UAS (less than or equal to 250 grams), (ii) micro UAS (more than 250 gms but less than or equal to 2 kilograms), (iii) small UAS (more than 2 kgs but less than or equal to 25 kgs), (iv) medium (more than 25 kgs but less than or equal to 150 kgs), and (v) large UAS (more than 150 kgs). This classification eases the use of nano and micro drones with minimal permissions. A nano drone is exempt from a remote pilot certificate (as per Rule 36 of the 2021 Rules), a type certificate (as per Rule 13(2) of the 2021 Rules), and third-party insurance (as per Rule 44 of the 2021 Rules). Additionally, according to Rule 36 of the 2021 Rules, microdrones can be operated without a remote pilot license for non-commercial purposes.<\/span>\u00a0<\/span><\/span><\/p>\n According to Rule 2(1) of the 2021 Rules, the amended 2021 Rules apply to (i) all UAS registered in India; (ii) persons who own or possess, or are involved in leasing, exporting, transferring, or maintaining a UAS in India; and (iii) UAS already operating in or above India. It is pertinent to note that the 2021 Rules do not apply to UAS with a maximum all-up weight of more than 500 kgs (as the<\/span>Aircraft Rules, 1937<\/a>, shall apply as per Rule 2(2) of the 2021 Rules) or to those that belong or are used by the military, naval, or air forces of the Indian Government (as per Rule 2(3) of the 2021 Rules).<\/span><\/span><\/p>\n B. Single-window approvals platform and reduced compliances<\/em><\/strong>\u00a0<\/span><\/span><\/p>\n The Union Ministry of Civil Aviation has<\/span>set up<\/a> the \u201c<\/span>Digital Sky Platform\u201d<\/span><\/a> online, ensuring a single window for obtaining approvals. Additionally, it minimizes human interaction and generates approvals automatically. Every UAS operating in India must register on the Digital Sky Platform, obtain a unique identification number (as per Rule 14 of the 2021 Rules), and conform to a type certificate (as per Rule 6 of the 2021 Rules) by filling out the required online form (as per Rules 9 and 15 of the 2021 Rules). Further, these approvals<\/span>do not require a prior security clearance<\/a>.\u00a0<\/span><\/span><\/p>\n The Director General will determine the standards for obtaining the type certificate based on the recommendations of the<\/span> Quality Council of India<\/a> (QCI, i.e., an independent organization created with the support of the Indian Government and industry bodies to set quality standards for products, services and processes) or an authorized testing entity (as per Rule 8 of the 2021 Rules). This will help assimilate the industries\u2019 views and support and<\/span>ensure alignment<\/a> with international standards. Additionally, Rule 9 of 2021 Rules requires the grant of type certificate within fifteen days, ensuring its grant efficiently.\u00a0<\/span><\/span><\/p>\n Moreover, the number of forms<\/span>have been reduced<\/a> from 25 (which existed under the earlier legal regime) to 5. The government fee is a nominal amount of INR 100 either for obtaining a type certificate, obtaining or renewing a remote pilot certificate, or obtaining, transferring or de-registration of a unique identification number (as per Rule 46 of the 2021 Rules). Remote pilot training organizations must pay a government fee of INR 1,000 for obtaining or renewing their authorization (as per Rule 46 of the 2021 Rules).\u00a0<\/span><\/span><\/p>\n Further, according to Rule 13 of the 2021 Rules, manufacturers and importers of a drone do not need to obtain a type certificate. However, a manufacturer and importer can get a unique identification number for their drone<\/span>through<\/a> a self-certification route on the Digital Sky Platform. A type certificate is also not required for operating a model remotely piloted aircraft system as per Rule 13 of the 2021 Rules (i.e., remotely piloted aircraft weighing up to 25 kgs and used only for educational, research, design, testing, or recreational purposes and operated within a Visual Line of Sight as per Rule 3(n) of the 2021 Rules). The 2021 Rules also provide a simplified process for transferring a drone to another person (as per Rule 17 of the 2021 Rules), de-registering it in case of loss or damage (as per Rule 18 of the 2021 Rules), and obtaining a unique identification number for a drone manufactured or imported into India on or before 30 November 2021 (as per Rule 16 of the 2021 Rules).\u00a0<\/span><\/span><\/p>\n To encourage self-monitoring, the Indian Government shall<\/span>devise<\/a> Standard Operating Procedures (SoPs) and Training Procedure Manuals (TPMs). Drone operators<\/span>will not require<\/a> permissions unless they significantly depart from these SoPs or TPMs. Recently, the Ministry of Agriculture & Farmers Welfare<\/span>released an SOP<\/a> to be followed while using drones to spray pesticides or soil and crop nutrients. Operators will be allowed to use drones for spraying pesticides, irrespective of the drone\u2019s weight or use case, provided the discharge of the substance is approved in the Unmanned Aircraft Operator Permit (UAOP) issued by the DGCA. Thus, the reliability of drones used for spraying pesticides is ensured through the DGCA approval process.<\/span><\/span><\/p>\n C. Interactive Airspace and UAS traffic management<\/em><\/strong>\u00a0<\/span><\/span><\/p>\n The Digital Sky Platform<\/span>shall display<\/a> an interactive airspace map demarcating the drone flying zones into green, yellow, and red (as per Rule 19 and 20 of the 2021 Rules). According to Rule 21 of the 2021 Rules, before commencing the proposed flight plan, the remote pilot must check the interactive airspace map for any notification or restriction that may be applicable to the air space in which the remote pilot intends to fly. Further, according to Rule 22 of the 2021 Rules, drone operators require prior permission to navigate the red or yellow zone, while the green zone requires no prior permission.\u00a0<\/span><\/span><\/p>\n On 24 October 2021, the Indian Government<\/span>published<\/a> the \u201cNational Unmanned Aircraft System Traffic Management (UTM) Policy Framework,\u201d which lays down guidelines for tracking drones operating up to 1000 feet above ground level via a software-based automated UAS traffic management system. The UTM Policy Framework establishes the roles and responsibilities of stakeholders, monitoring the interaction of manned and unmanned aircraft, and laying down guidelines for integrating UTM systems with the<\/span>current Air Traffic Management System<\/a>.<\/span> Under the UTM Policy Framework, additional service providers<\/span>will facilitate safe drone flights<\/a> via airspace surveillance and obstacle and weather tracking services.<\/span><\/span><\/p>\n D. Safety Provisions<\/em><\/strong><\/span><\/p>\n Rule 12 of the 2021 Rules prescribes mandatory safety features for installation on a drone for its safe operation. These features must be installed on existing drones within six months from the date of notification of these safety measures. The measures include: \u201c(a) \u2018No Permission \u2013 No Takeoff\u2019 (NPNT) hardware and firmware; (b) Real-time tracking beacon that communicates the drone\u2019s location, altitude, speed and unique identification number; and (c) Geo-fencing capability.\u201d<\/span><\/p>\n To safeguard national security, drones cannot carry arms, ammunition, explosives, military stores, munitions and implements of war, and other similar items, within or over India without written permission of the Central Government (as per Rule 27 of the 2021 Rules). Drones cannot carry dangerous goods unless they comply with the<\/span>Aircraft (Carriage of Dangerous Goods) Rules, 2003 (India)<\/a> (as per Rule 28 of the 2021 Rules). It is illegal for drones to interfere in the Right of Way of a manned aircraft (as per Rule 29 of the 2021 Rules). Drones must be operated \u201cwithout, directly or indirectly, endangering the safety and security of any person or property\u201d (as per Rule 26 of the 2021 Rules). Reporting a drone accident within forty-eight hours to the DGCA is mandatory (as per Rule 30 of the 2021 Rules). Third-party insurance for compensating damage caused to life or property has been mandated for all drones (as per Rule 44 of the 2021 Rules).<\/span><\/span><\/p>\n Part VII of the 2021 Rules provides the legal framework for establishing a Remote Pilot Training Organization and Part VI of the 2021 Rules for obtaining a Remote Pilot Certificate. These measures are to ensure the safe operation of drones by trained individuals.<\/span><\/p>\n E. Promotion of Drones<\/em><\/strong><\/span><\/p>\n According to Rule 42 of the 2021 Rules, government research and development entities, government education institutions, start-ups, authorized testing entities, and drone manufacturers with a Goods and Service Tax Identification Number (GSTIN) are encouraged to use drones without permission for research, development, and testing purposes within the green zone. The 2021 Rules encourage establishing a framework for drone corridors for delivering goods (as per Rule 43(2)(a) of the 2021 Rules) and establishing a UAS Promotion Council (as per Rule 45 of the 2021 Rules). This Council shall formulate business-friendly regulations and promote incubators to develop UAS and counter-UAS technologies.<\/span><\/p>\n F. Foreign Drones and Import of Drones<\/em><\/strong><\/span><\/p>\n The 2021 Rules<\/span>do not restrict<\/a> the ownership of foreign-owned drones. The foreign regulator-approved drones are accepted by the Indian authorities and issued type certification on that basis (as per Rule 10 of the 2021 Rules). Although,<\/span>in February 2022<\/a>, the Indian Government banned the importation of drones, importing drone components is permitted to encourage the local manufacture of drones. Government entities and recognized Research and Development organizations<\/span>can import drones<\/a> for research and development, defense, and security purposes after government approvals.<\/span><\/span><\/p>\n G. Penalties<\/em><\/strong><\/span><\/p>\n According to Rule 49(2) of the 2021 Rules, operating a drone in a red or yellow zone without prior permission and carrying arms, ammunition, and explosives in a drone is classified as a cognizable and non-compoundable offense. This allows the police officer to arrest the operator without a warrant and immediately start the investigation. The penalty for violation is limited to INR 1,00,000 (as per Rule 50 of the 2021 Rules). Further, according to Rule 53 of the 2021 Rules, DGCA can cancel or suspend drone approvals for a person violating the 2021 Rules.<\/span><\/p>\n <\/strong><\/p>\n 2. Analysis<\/strong><\/span><\/p>\n A. Benefits<\/em><\/span>\u00a0<\/span><\/span><\/p>\n The 2021 Rules aim to balance technological advancement with safe and secure drone operation. The legal framework is based on minimum compliance and self-monitoring. The Digital Sky Platform has<\/span>eased<\/a> obtaining necessary approval via a single-window online platform. The concerned authorities<\/span>need to grant<\/a> a type certificate within specific timelines, enabling stakeholders to obtain certification efficiently and plan the business accordingly. In a heartening move, the Indian Government, in consultation with QCI (or an authorized testing entity), shall set quality standards for obtaining the type certificate in consultation with the industry. The onus lies on the operator to ensure the drone conforms to the valid type certificate (as per Rule 14(3) of the 2021 Rules). All drones must obtain a unique identification number, ensuring that the operator is responsible for non-compliance or accidents.<\/span>\u00a0<\/span><\/span><\/p>\n Safety and security are ensured by providing an interactive airspace map, dividing the airspace into zones requiring prior approval, and prescribing mandatory safety features requiring adoption by every drone. The publication of the UTM Policy Framework will enable the creation of automated software to monitor the interaction of unmanned and manned aircraft, track obstacles and weather conditions, and ensure safe drone flights. Provisions also ensure that neither directly nor indirectly safety and security of any person or property are endangered, and there is no carriage of dangerous goods or arms, ammunition, and explosives in the drones.<\/span>\u00a0<\/span><\/span><\/p>\n Drone operators are compulsorily required to obtain third-party insurance to compensate in case of damage to a person or property. Foreign investments are encouraged by allowing foreign-owned and controlled Indian companies to manufacture and operate drones. Promoting foreign companies to invest in India will help bring advanced drone technologies and know-how to India. Drones used for research and development do not have to procure a type certificate and can operate without permission within the green zone. This, in turn, boosts start-ups in the drone sector. The 2021 Rules promote the development of counter-drone technologies to promote national security. The establishment of the UAS Promotion Council promotes a business-friendly regulatory regime.<\/span>\u00a0<\/span><\/span><\/p>\n The<\/span>projected growth<\/a> of the Indian drone market is at a Compound Annual Growth Rate (CAGR) of 18% from 2017-23, with more than<\/span>5,000 civil and military drone pilots by 2025<\/a>. India\u2019s drone and counter-drone market potential is estimated to be<\/span>USD 40 billion by 2030<\/a>. The Indian Government is promoting the manufacture of drones and drone components through<\/span>the Production-Linked Incentive (PLI) scheme<\/a> released in September 2021, which is<\/span>expected<\/a> to attract an investment of over INR 5,000 crores over the next three years. The 2021 Rules ensure liberalizing the legal regime and promoting the drone economy. However, specific legal gaps require resolution to ensure the drone industry taps its full potential.<\/span><\/span><\/p>\n B. Unresolved Legal Issues<\/em><\/strong><\/span><\/p>\n i. Ambiguities in approval procedures<\/u><\/em><\/strong><\/span><\/p>\n There is no timeline with respect to specific approval procedures, such as obtaining a unique identification number and the procedure for transferring a drone and de-registering a drone. Thus, a timeline should be provided to ensure drone operators can make their business plans accordingly. There is<\/span>ambiguity<\/a> regarding the inspection of drones and applicants in person before issuing the unique identification number. The unique identification number<\/span>will be linked<\/a> with the unique serial number provided by the manufacturer. However, it is<\/span>unclear<\/a> whether the manufacturer will issue the unique serial number or it will be given to the manufacturer by the concerned authorities.<\/span>\u00a0<\/span><\/span><\/p>\n ii. Legal liability<\/u><\/em><\/strong>\u00a0<\/span><\/span><\/p>\n The legal liability is on the operator to ensure that the drone does not, directly or indirectly, endanger any person or property. However, manufacturers of drones are liability-free, while manufacturing defects can cause accidents with no involvement of the operator. Indian Drone Rules, 2021, do not impose any liability and compliances on the drone manufacturers. India could adopt the<\/span>ICAO UAS Model Regulations<\/a>, 2020 (hereinafter 2020 Model Regulations<\/strong>), requiring the manufacturer to meet safety and industry standards (as per Regulations 102.305 and 102.307 of the 2020 Model Regulations).<\/span>\u00a0<\/span><\/span><\/p>\n The<\/span>Rome Convention, 1952 on Damage Caused by Foreign Aircraft to Third Parties on the Surface<\/a> (hereinafter Rome Convention, 1952<\/strong>) applies to aircraft but can be adapted for drones too. The Rome Convention 1952 is an international treaty that limits the damages caused directly to persons and property on the ground in a contracting State by aircraft registered in a foreign State that is also party to this Convention. The Rome Convention, 1952 also imposes an aggregate and strict liability on the operator and registered owner of the aircraft. Despite the limitations of the Rome Convention, 1952, India could adopt its principles for the legal liability of drones, such as imposing strict liability on the operator, registered owner, or wrongful user without consent, upon proving damage.<\/span><\/span><\/p>\n A protocol for law enforcement agencies is needed, given the potential of this technology in surveillance. The authorities also need to be given guidelines regarding reasonable and unreasonable use to avoid the unaccountable use of drones. Simultaneously, countermeasures are needed to tackle the misuse of drones by the public and to bring down rogue drones.<\/span>\u00a0<\/span><\/p>\n Rule 30 of the 2021 Rules provides for mandatory reporting of an accident, yet the definition includes only severe or fatal injury to a person and<\/span> necessitates expansion<\/a> to include property damage.<\/span><\/span><\/p>\n iii.<\/strong><\/em> Safety Provisions<\/u><\/span>\u00a0<\/span><\/span><\/p>\n While the 2021 Rules ensure safe drone operations, specific issues require addressing. Illustratively, drones operate in green zones sans permission, yet guidance for operation in a densely populated green zone is absent. The requirement for compulsorily reporting accidents necessitates measures for preventing accidents. The<\/span>2021 Rules are quiet<\/a> about carrying articles except for dangerous goods. Regulation 101.19 of the 2020 Model Regulations prohibits dropping articles from the UAS. Therefore, the 2021 Rules<\/span>need to accommodate<\/a> such risks. The lack of a mandate for collision avoidance mechanisms is a serious concern.<\/span>NASA\u2019s Low Altitude Tracking and Avoidance System<\/a> (LATAS) can be a requirement in the 2021 Rules. The lack of a mechanism in force<\/span>for terrorist threat management<\/a> is another grave concern.\u00a0<\/span><\/span><\/p>\n Model Remotely Piloted Aircraft System (RPAS) are drones, not requiring type certification, weighing up to 25 kgs, and are used for education, research, and recreational purposes. The<\/span>lack of a definition<\/a> for \u201crecreational\u201d can lead to misuse. Drones for research and development purposes are exempt from certifications or permissions but can<\/span>weigh up to 500 kgs<\/a> and require approvals in place.<\/span>Given the risks<\/a>