India has prohibited the import of drones, thereby blocking a developing market for China's SZ DJI Technology Co., the world's leading drone manufacturer, while encouraging a nascent local sector to speed up production.

Import of some drone equipment would be permitted without prior clearance, according to an order issued by India's Directorate General of Foreign Trade. Drones used for research & innovation, military, and security will be exempt from the prohibition, according to the administration.

As the epidemic and global trade disputes increase the need to vary the distribution network and avoid risk, India is one of the numerous nations across the world looking at other options to China for parts and systems. India and China have been at odds for a long time over their disputed Himalayan boundary.

Drones have taken center stage in ongoing disagreements between China and the United States, as worries ground that Shenzhen-based DJI might be recounting sensitive information to Chinese intelligence services on everything from vital infrastructures like bridges and dams to personal information like heart rates and face recognition.