Karnataka is announcing a new aerospace and defense policy

The Karnataka Department of Industry has announced a new aerospace and defense policy (2022-27) aimed at making the country the preferred investment destination for aerospace and defense production. Under the new A&D policy, the state will develop five aerospace and defense centers – Bengaluru, Belagavi, Missouri, Tumakuru and Chamarajanagara.

“The policy is aimed at attracting 60,000 kroner in investments in the defense sector over the next five years; creating more than 70,000 employment and development opportunities for the country as a manufacturing hub, including maintenance, repair and overhaul (MRO) and space applications for both the Indian market and exports, are some of the key features of A&D policy, ” said Muruges R Nirani, minister for large and medium-sized industries.

The policy is also focused on building a defense testing infrastructure (DTI). “The lack of an accessible test infrastructure is a major obstacle for local A&D production units. DTIs will be set up by the private sector with state aid, “Nirani added.

He also said that “Karnataka contributes a major share of 40 percent of electronic defense systems / products. To give further impetus, A&D’s policy offers huge land packages and financial incentives for space manufacturers, the defense and aerospace industries, and other subsectors.

As Karnataka manages foreign direct investment (FDI) with more than 40% of the country’s share, there is no doubt that the country will be the center of the defense and aerospace sectors, the minister said.

The policy encourages A&D parks, which will have a comprehensive infrastructure for research and development, common training facilities, etc. and built-in space for all manufacturing companies and the government to provide courses in the A&D sector, he added.

The second phase of the A&D park is already under development in Haralur, near Bengaluru International Airport, on over 1,200 acres. In addition, financial incentives are provided for A&D park developers in line with Karnataka’s industrial policy (2020-25).

Nirani said India’s current market size of approximately $ 7 billion is expected to grow at a compound annual growth rate (CAGR) of 7.5 percent to reach $ 15 billion by 2032, which represents a significant opportunity for defense electronics players in india to take advantage of. The Ministry of Defense has set a goal of 70% independence in weapons by 2027, creating great prospects for players in the industry.

The policy comes ahead of the upcoming Global Investors’ Meeting (GIM), scheduled for November 2nd, 3rd and 4th.

Posted on

June 19, 2022

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