Unlocking India’s Low Altitude Economy: Odisha’s vision for a national UAV test and innovation corridor at Rangeilunda, Berhampur admin Blog February 6, 2026 Unlocking India’s Low Altitude Economy | SRGF Insights SRGF INSIGHTS Download PDF Unlocking India’s Low Altitude Economy: A Vision for Rangeilunda Re-conceptualising 0-1,000 m AGL Airspace as National Infrastructure Historically, the airspace below 1,000 metres above ground level (AGL) has been treated merely as a safety buffer—a “residual” space to keep drones away from traditional aviation. Today, that perception is undergoing a radical shift. This low-altitude layer is emerging as a new infrastructure frontier, analogous to roads or radio spectrum. In this new paradigm, value is generated through structured access, throughput, reliability, and network effects rather than individual, episodic flights. The Low-Altitude Economy (LAE) refers to the economic activity enabled in this specific 0-1,000m layer using unmanned aircraft systems (UAS), emerging eVTOL platforms, digital traffic management, and automation. Unlike conventional aviation, which focuses on low-frequency, high-value movements at altitude, the LAE is defined by high-frequency, short-range operations conducted close to people, infrastructure, and frontline services. This characteristics shift the risk model from onboard passengers to a “ground-risk dominant” safety model. McKinsey & Company estimates that global drone-enabled services could generate USD 30-40 billion annually by 2030. However, this value depends less on technology alone and more on what the World Economic Forum calls “institutional readiness”—the ability of governments to convert latent capacity into productive infrastructure. India’s BVLOS Constraint: Moving from “Exceptions” to “Pathways” India’s regulatory journey on Beyond Visual Line of Sight (BVLOS) operations has reached a critical inflection point. While the Drone Rules, 2021 simplified classification and compliance through the Digital Sky platform, routine BVLOS remains structurally anchored in trial-based permissions and conditional exemptions. To move from pilots to permanence, we must address several structural bottlenecks: The Scalability Barrier: Manual Air Traffic Control (ATC) cannot scale to handle high-density drone traffic. Automation, telemetry, and digital coordination are essential prerequisites for throughput. High Transaction Costs: Under the current regime, mission-by-mission approvals require bespoke documentation and review. This “permission-centric” model reinforces episodic use and prevents the development of continuous, reliable logistics networks. The Infrastructure-Regulation Mismatch: There is a persistent gap between state-level readiness (land and assets) and central approval mechanisms. Without repeatable BVLOS pathways, even well-prepared state initiatives encounter binding regulatory constraints. The path forward involves moving toward performance-based pathways where low-altitude airspace becomes a continuous, networked system. Rangeilunda: A Regulatory Laboratory for the Next Generation The Rangeilunda Airstrip in southern Odisha is uniquely positioned to become a national-grade UAV testing, training, and validation ecosystem. It is a regulatory instrument designed to generate “regulator-usable evidence”. Rangeilunda offers: Anchor Aviation Infrastructure: Existing 3,000-foot paved airstrip under public authority. Coastal Operational Complexity: Validation for salt corrosion, wind shear, and GNSS variability. Low Surrounding Traffic Density: A “green-zone” for safe observation of loss-of-link behaviour. The Four-Layer Economic Stack: Where Value Migrates The LAE is a multi-layered economic stack where value migrates upward from hardware to services: Hardware (Airframes & Payloads): The entry ticket. Indigenous manufacturing is essential for strategic autonomy. Digital Infrastructure: The true enabler. Includes UTM, Remote ID, and geofencing. Applications: Where economic value is realized in logistics, disaster response, and agriculture. Services: The final layer where adoption becomes irreversible. Service models standardise accountability. A Phased Operational Roadmap EVLOS (Extended Visual Line of Sight) The primary “regulatory bridge” preserving human see-and-avoid while validating C2 links. BVLOS Corridors Managed volumes of airspace with mandatory digital services, emergency loiter zones, and recovery routes. Advanced Autonomy System-centric safety backed by digital UTM orchestration. Spillover Effects: Building National Strategic Capacity High-Skill Job Clusters Demand for safety managers, UTM operators, and compliance officers. Tech Anchors Localizing MSMEs and reducing brain drain to Tier-1 metros. Access the White Paper Please provide your details to download the full technical report. Full Name * Email Address * Phone Number * Business / Job Title (Optional) Submit & Download Details Submitted! A link to the white paper has been sent to your email. You can also download it directly below. Open PDF Now
