Upping the ante on the manufacturing roadmap, Uttar Pradesh is eyeing an investment of Rs 50,000 crore in aerospace and defence (A&D) sector.
The Yogi Adityanath government 2.0 will showcase its UP Defence Industrial Corridor (UPDIC) to the domestic and foreign A&D manufacturing companies to set up their plants in the state.
Recently, the Yogi cabinet cleared the UP Aerospace and Defence Unit and Employment Promotion Policy 2024 with the aim of attracting Rs 50,000 crore investment, and generating employment for 100,000 youth.
The policy seeks to encourage establishment of artificial intelligence (AI) and software development centers in the A&D sphere.
Commenting on the policy, chief minister Adityanath said it will catalyse the growth of companies to align with India’s grand vision of self-reliance in the A&D sector.
The policy will offer upto 80 percent subsidy on land to the foreign firms investing in UP.
So far, nearly 5,000 hectares of developed land has been earmarked for allotment across six nodes of the Corridor viz. Aligarh, Agra, Kanpur, Lucknow, Chitrakoot and Jhansi districts.
Moreover, the government has reformed the UP Industrial Investment and Employment Promotion Policy to further accelerate defence firms and startups.
Since India is among the world’s largest defence and military ware importers, the UPDIC is aimed at boosting domestic production and paring import volumes going forward.
The new policy aims to position UP as a leading aerospace and defence hub, accelerating indigenous capabilities, fostering innovation, and promoting global collaboration to enhance national security.
It will strengthen the A&D domain by creating a robust, hi-tech, and efficient manufacturing ecosystem within the UPDIC, and attract investments for the development of state-of-the-art facilities.
The policy offers various incentives, including front-end subsidies for A&D units, land subsidies, stamp duty exemptions, and capital subsidies.
Additionally, the government will provide benefits like exemptions on transportation charges, with special provisions for women entrepreneurs to encourage their participation in the sector.
The Ministry of Defence (MoD) has set a target to double India’s A&D production to $25 billion and exports to $5 billion by 2025-26.
By 2047, the A&D manufacturing sector is expected to contribute 25 percent to India’s Gross Domestic Product (GDP). To achieve these goals, two defence industrial corridors have been established in India; one each in UP and Tamil Nadu.
Meanwhile, the Yogi cabinet also cleared the new Foreign Director Investment (FDI) policy.