BENGALURU: The State Government is likely to announce a new aerospace and defence policy by the end of this year, Industries Minister Murugesh Nirani said as part of the new policy, the government is planning to offer enhanced incentives to Micro, Small and Medium Enterprises (MSMEs) to provide a level playing field and make them competitive.
Addressing business leaders at the Lockheed Martin’s 8th Annual India Suppliers Conference here, Nirani said that the government is in the process of setting up a 1,200-acre defence and aerospace park in Devanahalli.
A statement issued by Nirani’s office said that the new policy would concentrate on drawing original equipment manufacturers (OEM) to the state and the government is also looking to create clusters not only in Bengaluru, but elsewhere like Tumkuru, Chamarajnagar and Chitradurga.
Nirani said 25% of India’s aircraft and spacecraft industry is based in Karnataka and over 67% of all aircraft and helicopter manufacturing for defence services is done in the state, which contributes to
65% of the country’s aerospace-related exports. Karnataka is home to over 2,000 small and micro enterprises along with 70% of India’s supplier base which executes subcontracting work for the
Defence Public Sector Undertakings.
Karnataka was the first state in India to come out with an aerospace policy in 2013, and the proposed policy is intended to factor in developments in the sector in the last eight years as well as emerging sectors, read the statement.