BENGALURU: The new Karnataka Aerospace and Defence Policy 2022-27 announced by the State Government aims to attract investments to the tune of Rs 45,000 crore (USD 6 bn) in the aerospace and defence sector in five years. The policy aims to create additional jobs, direct and indirect for 60,000 persons and develop Karnataka as the aerospace and defence manufacturing hub, including MRO and space applications for both the Indian market and exports.
The policy was approved by the state Cabinet recently and a Government Order (GO) was issued. While Karnataka was the first state to come up with aerospace policy, the new policy was announced at a time when the aerospace industrial corridors have come up in Tamil Nadu and Uttar Pradesh.
The policy and package of incentives and concessions that came into effect from August 26, 2022, will be valid for a period of five years or till a new policy is announced, the GO reads. The Indian aerospace and Defence market is projected to reach approximately $70 bn by 2030 and Karnataka is the leader in the sector.
Over 25% of India’s aircraft and spacecraft industry is based in Karnataka and 67% of all aircraft and helicopter manufacturing for Defence services is done in the state.The new policy aims to strengthen R&D infrastructure for achieving innovative and cutting-edge technologies and create an enhanced facilitation mechanism for ease of doing business through an industry-friendly policy framework.
Policy steps identified under new policy include aerospace and defence parks at five hubs, promoting common testing facilities, skill development, strengthening R&D infrastructure for promoting innovative and cutting-edge technologies and promoting development of Karnataka as a destination for manufacturing for space applications and continue thrust on MSMEs.