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Afaik, you can take permission from local and central authorities to do experiments. It's usually private use of high grade drones that's banned.

Thanks for this info. How do they define "high-grade"?

BTW, there is a "drone festival" in Lucknow on June 19, I guess akin to the kite festivals around Sankranti. I plan to attend.

This article has some info:

I think the worst part of the empire for india was transplanting our civil service :-)