The country’s first smart manufacturing hub may come up in Telangana if the Centre gives the green signal, said VK Saraswat, Member of NITI Aayog.

Describing the hub as vital for the country’s rapidly growing defence and aerospace sectors, Saraswat, said this would serve as a centre of excellence to support the growth of the manufacturing sector in the country. Development of aero structures including carbon frames and use of nano materials would provide immense opportunity in such a hub.

“I had proposed this earlier and, now as a NITI Aayog member, plan to take this forward and establish such a centre in Telangana, which has all the requirements and infrastructure to become the country’s major aerospace and defence manufacturing hub,” he said.

Speaking on the sidelines of the Second Defence & Aerosupply global conclave being hosted in Hyderabad, Saraswat said a detailed project report on the hub will be prepared soon.

The recent move to increase the FDI limit from 26 per cent to 49 per cent and higher in select cases in aviation and defence is bound to attract huge investments, he said.

India’s defence sector has the potential to attract investment of over $200 billion.

Referring to the maintenance, repair and overhaul (MRO) facility for the aviation sector, Saraswat said it has the potential to attract more than $2.6 billion investments. He hinted that a revised defence acquisition framework will be ready within a couple of months.

Itzhak Nissan, Chairman of Meteor Aerospace, and former CEO of Israel Aerospace Industries, said India’s regulatory environment needs to be further simplified to attract investments.

“Though a number of measures have been initiated by the government, we believe some more changes could be brought about to attract investments,” he said.

Aero park Rajeev Sharma, Chief Secretary, Telangana, said the State has created a large land bank of over 1.5 lakh acres and plans to attract investments in the aerospace segment. “We are planning to set up another economic zone spread over 1000 acres for aerospace and defence sectors,” he said.