Uttar Pradesh launched Aerospace and Defence Policy to Attract Rs.50,000 Crore Investment and Create 1 Lakh Jobs
The Uttar Pradesh government, led by Chief Minister Yogi Adityanath, has introduced a groundbreaking Aerospace and Defence Unit and Employment Promotion Policy 2024, aiming to attract ₹50,000 crore in investments and generate 1 lakh jobs over the next five years. The policy, approved during a cabinet meeting in Prayagraj, is part of a broader plan to accelerate the state’s industrial growth and economic development.
The new policy positions Uttar Pradesh as a leader in the aerospace and defence sector, focusing on:
- Enhancing Indigenous Capabilities: Promoting innovation and self-reliance in defence manufacturing.
- Global Partnerships: Encouraging foreign direct investment (FDI) through a new policy offering up to 80% land subsidies for foreign firms setting up in the state.
- High-Tech Manufacturing Ecosystem: Developing advanced facilities within the Uttar Pradesh Defence Industrial Corridor (UPDIC).
To attract investors and startups, the policy offers a range of incentives, including:
- Subsidies for aerospace and defence (A&D) units.
- Land and stamp duty subsidies.
- Capital subsidies for mega industrial projects.
The policy emphasizes skill development and innovation by establishing common facility centres within UPDIC. These centres will support startups and MSMEs in developing advanced manufacturing capabilities.
The initiative aligns with the Ministry of Defence’s goals of doubling India’s aerospace and defence production to $25 billion by 2025-26 and contributing 25% to the country’s GDP by 2047. Uttar Pradesh, one of India’s two defence corridors, is set to play a pivotal role in achieving these objectives.
The cabinet also approved major industrial projects:
- Ashok Leyland Ltd: Subsidy payments for a bus manufacturing facility in Uttar Pradesh with an annual capacity of 2,500 buses and an estimated investment of ₹186 crore.
- Triveni Engineering, Moradabad: ₹250 crore in capital subsidies approved under the Industrial Investment and Employment Promotion Policy 2022.
- Gallant Ispat Ltd, Mirzapur: ₹10,749 crore sanctioned as SGST reimbursement.
Special provisions under the policy aim to encourage women entrepreneurs to participate in the aerospace and defence sector, fostering inclusivity and innovation.
Chief Minister Yogi Adityanath highlighted that the policy reflects India’s broader vision of self-reliance in aerospace and defence. By fostering strategic investments, the policy aims to position Uttar Pradesh as a critical player in the nation’s industrial growth, contributing to economic prosperity and technological advancements.
