BENGALURU: With just about four months left for the Global Investors Meet (GIM) which is scheduled for November 2, 3, 4, Karnataka industries department is ready with the Aerospace & Defence policy (2022-27) which aims to establish the state as the preferred investment destination for Aerospace & Defence manufacturing destination. The Defence Ministry has set a target of 70 per cent self-reliance in weapons by 2027, creating huge prospects for industry players.
“To attract investments to the tune of Rs 60,000 crore (USD 6 billion) in the aerospace & defence sector during the policy period of five years. Creating additional employment opportunities of more 70,000 and developing the state as a manufacturing hub including MRO and space applications for both Indian market and exports are some of the key features of A&D policy,” noted Large & Medium Industries Minister Murugesh R Nirani on Sunday in a media release.
Nirani who has piloted the policy said that India’s current market size of approximately USD 7 Bn is expected to grow at a CAGR of 7.5% to reach USD 15 billion by 2032 presenting a significant opportunity for defence electronics players in India to capitalise upon. “Karnataka contributes a major share of 40% of defence electronics systems/products. To give a further boost, the A&D policy offers a huge land & financial incentives packages for space, defence & aerospace manufacturers and other sub-sectors.”
Electronics is the primary capability in modern warfare systems with a value contribution being more than 40% across leading platforms. The growth in demand for electronics in Indian A&D is driven by the modernisation of weapon platforms, introduction of state-of-art weapons, impact of indigenization and make in India initiative.
Under the A&D policy, the state will develop five Aerospace & Defence hubs -- Bengaluru, Belagavi, Mysuru, Tumakuru & Chamarajanagara. “The policy promotes for A&D parks which will have 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, government ITIs to provide courses pertaining to the A&D sector to create a strong pool of talent for the companies setting up their units within the parks,” Nirani said.
The department is already developing phase 2 of the A&D park in Haralur, near Bengaluru International Airport on over 1,200 acres. Financial incentives have been earmarked to A&D park developers as per the Karnataka Industrial Policy (2020-25).
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 the private sector with government assistance,” he said.