Uttar Pradesh’s Unveils Aerospace and Defence Policy 2024

January 23, 2025

The Uttar Pradesh government has revealed a comprehensive Aerospace and Defence Unit policy aimed at attracting investments and creating employment opportunities. It aims to draw investments and generate jobs over the next five years. This initiative is part of a broader strategy to position Uttar Pradesh as a very important hub in the aerospace and defence sector.

Policy Objectives

The Aerospace and Defence Unit and Employment Promotion Policy 2024 aims to enhance indigenous capabilities within the aerospace and defence sectors. It focuses on encouraging innovation, promoting global collaboration, and ensuring national security while boosting economic prosperity.

Investment and Employment Goals

The policy sets an ambitious target of attracting Rs 50,000 crore in investments.
It is designed to create direct employment for 1 lakh youth across the state.
This investment is expected to catalyse growth in the aerospace and defence manufacturing ecosystem.

FDI Policy

To encourage foreign direct investment (FDI), the state government has introduced a new FDI policy.
This includes offering up to 80 per cent subsidy on land to foreign firms.
The aim is to enhance industrial growth and attract global players to Uttar Pradesh.

Development of the Defence Industrial Corridor

The policy seeks to establish a robust and efficient aerospace and defence manufacturing ecosystem within the UP Defence Industrial Corridor (UPDIC). It aims to attract large manufacturing projects and Defence Public Sector Undertakings (DPSUs) to boost the sector.

Support for Startups and MSMEs

The government plans to create common facility centres focused on aerospace and defence to support startups and Micro, Small, and Medium Enterprises (MSMEs). These centres will enhance skills and capacities, promoting innovation and entrepreneurship within the sector.

Focus on Artificial Intelligence and Software Development

The policy encourages the establishment of artificial intelligence and software development centres specifically for the aerospace and defence industries. This initiative aims to align with India’s vision of self-reliance in these sectors.

Financial Incentives and Benefits

Significant financial incentives are part of the policy. These include front-end subsidies for aerospace and defence units, exemptions on stamp duty, and capital subsidies. The government also plans to provide benefits like transportation charge exemptions and special provisions for women entrepreneurs.

National Defence Production Goals

The Ministry of Defence has set a target to double India’s aerospace and defence production to USD 25 billion and exports to USD 5 billion by 2025-26. By 2047, the sector is expected to contribute 25 per cent to the nation’s GDP.

Infrastructure Projects and Initiatives

Recent cabinet approvals include subsidies for land allotted to industrial projects, such as Ashok Leyland Ltd., which plans to establish a facility with a production capacity of 2,500 buses annually. This project is part of a broader push to attract Fortune 500 companies to the state.

Conclusion on Industrial Development

The Uttar Pradesh government’s initiatives under the Aerospace and Defence Unit and Employment Promotion Policy 2024 represent a strategic move to enhance the state’s industrial landscape. With a focus on innovation, investment, and employment, the policy is poised to transform Uttar Pradesh into a leader in the aerospace and defence sectors.

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