Andhra Pradesh is aggressively pursuing its ambition to become a global hub for defence manufacturing and aerospace technologies, unveiling a series of incentives and strategic initiatives to attract investments and foster growth in these sectors. The state government is particularly focused on establishing itself as India's premier aerospace and defence manufacturing hub, with a target of attracting ₹50,000 crore to ₹1 lakh crore in investments over the next five years.
Chief Minister N. Chandrababu Naidu recently reviewed the Aerospace and Defence Policy 4.0 (2025–2030), emphasizing the critical role of technology in national security and the need for Andhra Pradesh to be at the forefront of innovation in these fields. The policy includes a range of incentives, such as subsidized land and technology transfer subsidies, designed to make the state an attractive destination for aerospace and defence companies.
A key component of Andhra Pradesh's strategy is the development of specialized manufacturing corridors across the state. These corridors are designed to promote specialized production and create a comprehensive ecosystem for the aerospace and defence industries. The planned corridors include:
The government is also planning to establish five aerospace and defence hubs across the state to further consolidate the industry and promote collaboration. In addition, Tirupati is slated to become a research and development (R&D) powerhouse with a proposed DRDO (Defence Research and Development Organisation) Centre of Excellence.
To support the growth of Micro, Small, and Medium Enterprises (MSMEs) in the aerospace and defence sectors, Chief Minister Naidu has proposed an annual ₹100 crore corpus fund and the inclusion of logistics subsidies in the new policy. He stressed the importance of strengthening MSMEs and establishing quality benchmarks for allied industries. The government is also adopting the French model of defence clusters, where Original Equipment Manufacturer (OEM)-led clusters are key to developing the aerospace and defence manufacturing ecosystem.
Currently, 23 companies have already invested ₹22,000 crore in Andhra Pradesh's aerospace and defence clusters, creating employment for 17,000 people. Bharat Forge and MMW companies are preparing to invest in the Madakasira cluster, with the foundation stone to be laid soon. These investments demonstrate the growing confidence in Andhra Pradesh as a перспективен destination for aerospace and defence manufacturing.
Andhra Pradesh's proactive approach, coupled with its strategic location and supportive policies, positions it as a rising star in the Indian aerospace and defence landscape. By focusing on innovation, infrastructure development, and MSME support, the state aims to attract significant investments, create jobs, and contribute to India's national security objectives.
