New Aerospace & Defence policy will propel Karnataka as a defence manufacturing hub: Nirani

The Defence Ministry has set a target of 70 per cent self-reliance in weapons by 2027, creating huge prospects for industry players.

Published: 20th June 2022 11:50 AM  |   Last Updated: 20th June 2022 11:50 AM   |  A+A-

Minister for Large and Medium Scale Industries Murugesh R Nirani

Minister for Large and Medium Scale Industries Murugesh R Nirani. (Photo| EPS)

By Express News Service

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.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp