India is considered to be a huge market for consumer drone however, it does not have regulations on use of drones within its borders. It is currently illegal for civilians to fly drones in India without the permission from concerned authorities.
The Directorate General of Civil Aviation (DGCA), in Oct 2014 announced that until proper rules and regulations are formulated, UAVs are restricted in Indian air space for any individual, non-government agency or organization. You can view the public notice here.
The Ministry of Home Affairs has asked the DGCA to regulate the use of drones, but it declined as it will be difficult considering the current available resources and unless the state government and police help them with.
DGCA official said, “With our current strength and reach, it will not be possible for us to regulate it (drone activity) across the country,”
The Defense Ministry and the IT ministry have supported to legalize the commercial operations of drones. Already Haryana Government is using drones for land record management and city planning in urban as well as in rural areas. Drones are also being used in Gurgaon for mapping a small grid project of 16 sq km area after taking multiple permissions from the administration.
As India is considered a huge market for consumer drones and private sector is already suffering due to India’s restrictions on its use. For example, Xiaomi has already launched a drone in China but it may face difficulties to bring it in India.