Andhra Pradesh new Aerospace and Defence Policy 4.0 (2025–2030) is aiming at attracting investments ranging from ₹50,000 crore to ₹1 lakh crore over the next five years to establish the State Pradesh as India’s premier aerospace and defence manufacturing hub.

In a review on the modalities of the new policy in Amaravati on Monday, Chief Minister N Chandrababu Naidu said there was a need to position the State as a hub for advanced technologies and innovation in the aerospace and defence sectors. 

Stating that the new policy would support MSMEs in defence and aerospace, Naidu said Andhra Pradesh should outperform other States in this regard. He directed the officials to work on setting up an annual ₹100 crore corpus fund for these two sectors for subsidies and including logistics in the new policy.

Clusters 

The new policy designated specialised manufacturing corridors across the State, namely, Visakhapatnam-Srikakulam for naval systems, Jaggaiahpet-Donakonda for missile production, Kurnool-Orvakal for drone technologies, and Lepakshi-Madakasira for aerospace electronics. Tirupati would be made an R&D powerhouse with the proposed DRDO Centre of Excellence.

According to officials, Bharat Forge and MMW companies were preparing to invest in the Madakasira cluster and foundation stone for the proposed projects would be laid soon. 

India’s annual defence product market is valued at ₹1.27 lakh crore, with public sector enterprises accounting for 73 per cent of production. The private sector contributes 21 per cent while public-private partnerships account for the remaining seven per cent. 

As of now, 23 companies have invested ₹22,000 crore in Andhra Pradesh’s aerospace and defence clusters, creating employment for 17,000 people.

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Published on June 23, 2025