India's metro regions are ready for the next stage of drone-enabled services, but the low-altitude airspace above them is not. As the range of applications for drones expands to include deliveries, healthcare logistics, emergency response, and infrastructure monitoring, cities will need a shared digital layer to detect, manage, and coordinate drone traffic management.

This whitepaper examines the strategic imperative, market opportunity, regulatory environment, social and economic impact, and financial case for a shared low-altitude airspace. It also proposes a practical city-level implementation model that brings together public oversight with private-sector investment, technology, and operating capabilities.

Key highlights

Why cities need a new infrastructure layer

India's major cities are seeing massive population growth and a corresponding spike in demand for digital commerce and logistics, all of which is being hampered by a severe lack of road infrastructure. In many of the metros, a 10km journey can take over 30 minutes. This obviously impacts the delivery of goods as well as the movement of blood, lab samples, medicines, and emergency equipment. Drones won't be a replacement for road transport, but can be a useful complementary channel for the movement of light, time-critical, and urgent goods.

The missing piece is a common system for the low-altitude airspace infrastructure. Individual operators can obviously run their own fleets, but city authorities will require a much broader picture, and multiple operators will need a safe way to share busy urban routes. A city network would provide detection and tracking, a common operating picture, drone traffic management, and controlled data sharing with the appropriate authorities.

Hours lost in rush-hour traffic per driver, 2025

The urban market opportunity

Delivery is likely to be the area of highest recurring demand for metro airspace. India's quick commerce market was reportedly processing 7.8 million orders per day by early 2026, and the country had over 270 million online shoppers in 2024. The whitepaper's demand model takes the metro population, middle-class growth, online shopping penetration, and delivery activity and converts them into estimates of potential drone-eligible orders under both accelerated and conservative adoption scenarios.

Delhi NCR is by far the largest potential market (32.7 million deliveries per year in 2045 under the accelerated adoption scenario), followed by Mumbai MMR and Bengaluru at 18.4m and 17.2m respectively. Demand is, however, spread across all eight metros, so a network-based approach is the way to go rather than one based on individual operators' infrastructure.

Potential economic and societal value

The international evidence is strongest in healthcare and emergency logistics. There are documented programmes that have demonstrably reduced the time required to move blood, vaccines, medical samples, and defibrillators. Indian pilots have seen the same effect with vaccine flights in Manipur, reducing from several hours by road to under 15 minutes by drone.

The broader benefits would include improved logistics reliability and lower delivery costs (a single operator can look after several aircraft), skilled employment, demand for domestic manufacturing, and several targeted reductions in road travel. The report's illustrative case suggests that drone deliveries could avoid some 139m km of road travel per year across the 8 metros by 2035, rising to some 791m km by 2045 under the accelerated adoption scenario. The actual benefits will, of course, be a function of route design, payload, the electricity mix, and the extent to which road travel is replaced by drone flights.

Delivery time by drone and by road

A practical delivery model for metropolitan airspace

The proposed network is a hybrid of physical and digital assets: surveillance sensors, communications links, drone ports, charging and support infrastructure, a city airspace command centre, and a common digital platform. Given the scale of investment required over the long term (for systems integration, ongoing operations, and regular tech refreshes), the report recommends establishing a city airspace SPV through a competitive public-private partnership.

Under a DBFOT (design, build, finance, operate, and transfer) structure, the SPV would finance, deploy, and operate the network in accordance with the specified performance criteria. The public authorities would provide the sites, coordinate the various statutory interfaces, and provide the anchor demand through the public sector. The sovereign functions (aviation regulation, airspace control, security, enforcement, and counter-drone) would remain with the relevant government authorities.

Closing perspective

A proper urban drone infrastructure can enable faster public services and commercial logistics and set the stage for advanced air mobility in the future. The opportunity isn't just about allowing more drones to fly. It's about creating a shared system that makes high-volume operations visible, coordinated, safe, and scalable. The cities that put governance in place, secure strategic sites, and start with controlled deployment will be best positioned to benefit from India’s emerging low-altitude economy.

Opening up India’s urban skies
Read the report

Opening up India’s urban skies

Shared low-altitude airspace infrastructure for drone services in India’s metro cities

October 2026