UP government approves new aerospace and defence policy
The Uttar Pradesh government has approved a groundbreaking Aerospace and Defence Unit Policy aimed at attracting ₹50,000 crore in investments and creating 1 lakh jobs. The decision was announced during a state cabinet meeting chaired by Chief Minister Yogi Adityanath in Prayagraj on Wednesday. The meeting also cleared a new Foreign Direct Investment (FDI) policy and several other key proposals to accelerate the state’s industrial and economic growth.
The Aerospace and Defence Unit and Employment Promotion Policy 2024 seeks to position Uttar Pradesh as a leader in the sector by fostering indigenous manufacturing, promoting innovation, and strengthening national security. The policy focuses on developing a high-tech, efficient ecosystem within the UP Defence Industrial Corridor (UPDIC), attracting startups, large-scale manufacturers, and Defence Public Sector Undertakings (DPSUs).
Chief Minister Adityanath said the initiative aligns with India’s vision of self-reliance in the Aerospace and Defence (A&D) sector. The policy targets ₹50,000 crore in investments over five years and promises 1 lakh employment opportunities. Incentives include subsidies for A&D units, land and stamp duty exemptions, capital subsidies, and special provisions to encourage women entrepreneurs.
The government also aims to encourage artificial intelligence and software development centers in A&D, ensuring Uttar Pradesh becomes a critical player in India’s defence and aerospace industries. Additional plans include establishing common facility centers to support startups and MSMEs within the UPDIC and promoting research and innovation.
The cabinet approved the FDI Policy 2023 to attract foreign companies by offering up to 80% subsidies on land for new industrial setups. Reforms under the Industrial Investment and Employment Promotion Policy 2022 were also sanctioned to bolster mega industrial projects.
As part of these reforms, ₹250 crore was approved as a capital subsidy for Triveni Engineering and Industries Ltd in Moradabad, and ₹10,749 crore was sanctioned as SGST reimbursement for Gallant Ispat Ltd in Mirzapur. Additionally, ₹106.51 crore will be paid to UPSIDA for land provided to Ashok Leyland Ltd. under the front-ended land subsidy provision of the Incentive Policy 2023. Ashok Leyland’s upcoming facility, with an investment of ₹186 crore, will have a production capacity of 2,500 buses annually.
The Ministry of Defence has set an ambitious target of doubling India’s A&D production to USD 25 billion and increasing exports to USD 5 billion by 2025-26. Uttar Pradesh, alongside Tamil Nadu, is expected to play a pivotal role in achieving this vision with its established defence industrial corridor.
These policies and reforms reflect the Uttar Pradesh government’s commitment to driving industrial growth, fostering innovation, and generating large-scale employment opportunities in the state.
