The Government of Karnataka has announced the Karnataka Aerospace and Defence Policy 2022-27 to increase investments and establish Karnataka as the preferred investment destination for aerospace and defence manufacturing.
It aims to attract investments of ₹45,000 crore in the aerospace and defence sector during the policy period of 5 years. It also intends to create additional employment opportunities (direct and indirect) for 60,000 people and develop Karnataka as the Aerospace and Defence manufacturing hub, including maintenance, repair, and operations for both the Indian market and exports. Lastly, it wants to strengthen the R&D infrastructure for achieving innovative and cutting-edge technologies and create an enhanced facilitation mechanism for ease of doing business through an industry-friendly policy framework.
Competitive technologies
The policy will also help in the development of indigenous and advanced technologies in manufacturing for space-related applications, develop world-class skilled manpower, and support Micro, Small and Medium Enterprises (MSMEs) in the supply chain with increased technological access to globally competitive technologies.
Karnataka was the first state to announce the Aerospace and Defence policy in 2013. Over the years, the state has established a strong aerospace and defence ecosystem with 25 per cent of India’s aircraft and spacecraft industry based in Karnataka and 67 per cent of all aircraft and helicopters manufactured for defence services are done in Karnataka and contribute to 65 per cent of the country’s aerospace-related exports from India.
The Aerospace and Defence Policy 2022-27 and a package of incentives and concessions are into effect from 26.08.2022 and will be valid for a period of 5 years or till a new policy is announced.