The Karnataka Industries department has readied an Aerospace and Defence policy (2022-27) aimed at attracting investment for manufacturing in these sectors.
According to Industries Minister Murugesh Nirani, the policy is designed to attract investment to the tune of Rs 60,000 crore in the aerospace and defence sector during the policy period of five years.
“It will create additional employment opportunities of more than 70,000 and will develop state as manufacturing hub for both Indian market and exports,” the minister said in a release.
Nirani, who has piloted the policy, said that India’s current market size of approximately seven billion dollars is expected to reach 15 billion dollars by 2032.
“Karnataka contributes a major share of around 40% in producing defence electronics systems/products in the country. To boost it further, the policy will offer huge incentives packages for space, defence and aerospace manufacturers and allied sub-sectors,” he said.
Under the new policy, the state will develop five aerospace and defence hubs in Bengaluru, Belagavi, Mysuru, Tumakuru and Chamarajanagar. The policy will ensure comprehensive infrastructure facilities including roads, captive power generation, water supply, facilities for R&D, common training facilities, common warehouse facilities, plug-n-play facilities like manufacturing complex and built-in space for all precision manufacturing companies etc., according to Nirani.
Another key thrust of the policy is to focus on setting up of Defence Testing Infrastructure (DTI).
“Lack of accessible testing infrastructure is the main impediment for the domestic A&D production units. The DTIs will be set up under private sector with government assistance,” Nirani said.