'Karnataka remains aerospace and defence capital of India'

M B Patil, Karnataka’s Minister for Large and Medium Industries and Infrastructure Development, dives into the state’s bold ambitions for the aerospace and defence sector in a conversation with Shantanu Hornad.

With the country’s 65 per cent defence and aerospace contribution coming from Karnataka, what is the goal in the coming years in terms of investment in this sector?

Karnataka remains the undisputed aerospace and defence capital of India, contributing 67 per cent of all aircraft and helicopter manufacturing for the Defence services and accounting for 65 per cent of the country’s aerospace exports. Supported by over 2,000 SMEs — comprising roughly 70 per cent of India’s supplier base for niche sub-contracting to Defence PSUs — the state’s ecosystem spans established clusters in Bengaluru and other growing hubs. Building on this robust foundation, the Government of Karnataka aims to attract Rs 45,000 crore in aerospace and defence investments by 2027, generating around 60,000 jobs. 

What will be the role of private players in contributing to this ecosystem?

Private enterprises are driving Karnataka’s aerospace and defence innovation through landmark manufacturing and space technology achievements. Tata Advanced Systems Limited (TASL) and Airbus have together established India’s first privately led final assembly line for the H125 helicopter in Kolar, Karnataka. Pixxel, a Bengaluru‐based hyperspectral imaging startup, secured a slot on NASA’s $476 million Commercial SmallSat Data Acquisition Program, positioning itself as the sole Indian firm selected to supply high‐resolution Earth observation data for both environmental monitoring and defence applications. Digantara launched its SCOT (Space Camera for Object Tracking) satellite aboard SpaceX’s Transporter-12 mission.

The Government of Karnataka actively promotes private sector involvement by facilitating access to testing infrastructure, incubation support, and collaborative partnerships with premier research institutions. As a result, Karnataka’s private aerospace firms are increasingly integrated into global supply chains, exemplifying how strategic support and industry–academic collaborations can translate homegrown expertise into world-class defence solutions.

Could you share more details about the defence corridor?

Karnataka does not currently have a formally sanctioned Defence Corridor, but our state is actively seeking approval based solely on merit. Despite defence corridors being approved for Uttar Pradesh and Tamil Nadu, Karnataka’s contribution of 65% to India’s aerospace and defence output makes it equally deserving. Our focus is to ensure that Karnataka’s robust manufacturing base—including Hindustan Aeronautics Limited’s facilities and over 2,000 specialised SMEs—receives the infrastructural recognition it merits. The proposed Defence Corridor is about creating a seamless ecosystem where design, prototyping, and production happen side by side.

Karnataka’s Aerospace and Defence Policy aims to attract Rs 45,000 crore in investments. How much of that has been specifically earmarked or attracted in the defence drone segment so far?

The policy does not earmark sub‐targets for specific segments. We explicitly identify drone technology as a focus subsector and offer incentives to foster drone innovation and manufacturing.

With Operation Sindoor highlighting the urgency of tactical drone deployment, how is Karnataka supporting the rapid development and deployment of indigenous defence drones?

Karnataka’s Aerospace and  Defence Policy places a strong emphasis on drones and avionics by offering some of the most competitive incentives in the country. Investors setting up drone or avionics manufacturing units can avail of a 25% subsidy on land acquisition and a 20% capital subsidy on plant and machinery, along with a production-linked incentive of 1% of their annual turnover for five years. In addition, we provide power tariff reimbursements, stamp duty and registration fee exemptions, and waiver of electricity duty—measures designed to lower the cost of doing business and accelerate the growth of these high-potential subsectors.

The Government of Karnataka fully supports drone production as a strategic priority and has taken steps to ensure manufacturers succeed. Through public–private partnerships, skill-development workshops, and regular industry events, we are fostering a robust ecosystem that supplies startups with funding, mentorship, and market linkages. By creating this enabling environment, Karnataka is set to become the premier destination for drone and avionics manufacturing in India.