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CM Nara Chandrababu Naidu launches ambitious Rs.1 lakh crore aerospace defense investment strategy
Aerospace and Defense Policy
In a decisive move today, Hon’ble Chief Minister Shri Nara Chandrababu Naidu chaired a high‑level review to finalize a transformative Aerospace and Defense Policy aimed at attracting Rs 1 lakh crore investment into the sector over the next five years. This strategic initiative reinforces the government’s commitment to positioning the state as a national hub for aerospace and defense excellence.
Aerospace and Defense Policy aims
The Aerospace and Defense Policy centers on a comprehensive roadmap to stimulate private sector engagement, boost exports, generate employment, and accelerate technological innovation. CM Naidu emphasized that streamlining regulatory approvals, offering tax incentives, and creating infrastructure parks are key priorities.
Infrastructure support for aerospace sector
To support the Aerospace and Defense Policy, new aerospace and defense parks will be developed near major airports and industrial zones. These parks aim to provide plug‑and‑play facilities with ready‑built hangars, testing centers, and R&D labs to facilitate ease of operations for both startups and multinational corporations.
Fiscal incentives and regulatory reforms
Under the Aerospace and Defense Policy, fiscal incentives include capital subsidy up to 25%, GST reimbursement, and exemption on land use change charges. Regulatory reforms will establish a one‑window clearance system, reducing startup lead time and simplifying foreign direct investment processes.
Investment strategy and projected impact
The Rs 1 lakh crore investment strategy under this Aerospace and Defense Policy is expected to generate over 50,000 direct jobs and 100,000 indirect jobs. The policy targets key verticals such as satellite manufacturing, UAV development, avionics, and defense electronics, aligning with the national “Make in India” vision.
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High‑level review and stakeholder engagement
CM Naidu’s high‑level review convened industry veterans, defense experts, bureaucrats, and academia to refine the Aerospace and Defense Policy. Stakeholder engagement sessions highlighted global case studies, best practices, and the need for skill development programs to sustain the sector’s growth.
Technology and R&D thrust
The Aerospace and Defense Policy places R&D at its core. Partnerships with national research institutes and international collaborations are planned to foster innovation. Grants and innovation challenge funds will support startups and SMEs to develop cutting‑edge technologies in propulsion systems, materials, and avionics.
Export promotion focus
The Aerospace and Defense Policy includes export promotion cells to support domestic firms. The government will organize buyer‑seller meets, trade delegations, and joint ventures to lift export competitiveness. Special incentives will be offered for contracts secured in foreign markets.
Skill development and education initiatives
To build a talent pipeline under the Aerospace and Defense Policy, the state will collaborate with universities and training institutes to launch specialized diploma and degree programs in aerospace engineering, avionics, and defense technology. Apprenticeships and on‑the‑job training will be mandated for firms setting up operations.
Monitoring and evaluation mechanism
A dedicated aerospace and defense board will monitor implementation of the Aerospace and Defense Policy, ensuring milestones such as FDI inflow, job creation, infrastructure readiness, and export performance are tracked quarterly. This board will report directly to the CM for prompt decision‑making.
Regional and national significance
By unveiling the Aerospace and Defense Policy, CM Naidu signals the state’s ambition to become a strategic aerospace and defense manufacturing destination in India. Complementing national initiatives like “Aatmanirbhar Bharat” and “Defence Corridor,” the policy promises regional economic transformation and global market penetration.
The Aerospace and Defense Policy unveiled by CM Nara Chandrababu Naidu sets a bold and positive agenda. With its thorough investment strategy, infrastructure development, fiscal incentives, R&D thrust, export push, and skill building framework, this policy charts the course for a booming aerospace and defense ecosystem capable of drawing Rs 1 lakh crore in investment over five years. Its successful implementation could mark a watershed in India’s industrial history and position the state as a global manufacturing hub.
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