Has Andhra Pradesh Set a Rs.1 Lakh Crore Investment Goal in Aerospace and Defence?
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Synopsis
In a bold move to cement its status as India's aerospace and defence manufacturing powerhouse, Andhra Pradesh aims to attract investments of up to Rs 1 lakh crore over the next five years, focusing on innovation and technology to transform the sector.
Key Takeaways
- Andhra Pradesh targets Rs 50,000 crore to Rs 1 lakh crore investment in aerospace and defence.
- Specialized manufacturing corridors will be developed across the state.
- Chief Minister emphasizes advanced technology and innovation.
- MSMEs will receive support to enhance quality and productivity.
- Investment is expected to create significant employment opportunities.
Amaravati, June 23 (NationPress) The government of Andhra Pradesh has established an ambitious goal of securing investments ranging from Rs 50,000 crore to Rs 1 lakh crore in the aerospace and defence sectors over the next five years, aiming to position the state as India’s leading hub for aerospace and defence manufacturing.
The administration has proposed the creation of dedicated manufacturing corridors throughout the state, focusing on naval systems, missile production, and drone technologies.
In a review meeting on Monday, Chief Minister N. Chandrababu Naidu assessed the Aerospace and Defence Policy 4.0 (2025–2030) at the Secretariat.
This policy outlines specific manufacturing corridors in Andhra Pradesh: Visakhapatnam-Srikakulam for naval systems, Jaggaiahpet-Donakonda for missile production, Kurnool-Orvakal for drone technologies, and Lepakshi-Madakasira for aerospace electronics. Additionally, Tirupati is set to become a research and development powerhouse with the establishment of a proposed DRDO Centre of Excellence.
Officials informed the Chief Minister that Bharat Forge and MMW are preparing to invest in the Madakasira cluster, with plans for a foundation stone ceremony to be held soon.
It was reported that a total of 23 companies have invested Rs 22,000 crore thus far in Andhra Pradesh’s aerospace and defence clusters, resulting in the creation of 17,000 jobs.
The current annual market value of India’s defence products is Rs 1.27 lakh crore, with public sector enterprises contributing 73% of production. The private sector accounts for 21%, while Public-Private Partnerships represent the remaining 7%.
Chief Minister Naidu stressed the importance of positioning the state as a center for advanced technology and innovation within the aerospace and defence sectors.
Referencing India’s deployment of modern technology during 'Operation Sindoor', he highlighted the increasing importance of technology in national defence. He also pointed out the necessity of developing such technologies for both defence purposes and enhancing everyday life.
Emphasizing the future prospects in national defence and internal security, he stated that the new policy should significantly contribute to the establishment of industries aligned with these objectives.
Furthermore, he proposed several amendments to ensure national security remains a key priority. Aerospace and Defence Advisor Satish Reddy participated in the review via video conference and provided valuable suggestions.
The Chief Minister highlighted the need to support MSMEs in this sector, asserting that Andhra Pradesh should excel compared to other states. He suggested an annual Rs 100 crore fund and the inclusion of logistics subsidies in the new policy.
“It is crucial to empower MSMEs. A benchmark for quality in allied industries must be established. Value addition and effective marketing and branding are essential. The vision of ‘One Family, One Entrepreneur’ must be realized,” he expressed.
Point of View
We recognize Andhra Pradesh's commitment to bolstering its aerospace and defence industries. This initiative not only presents significant economic opportunities but also aligns with national security interests. By prioritizing advanced technologies and supporting MSMEs, the state positions itself as a crucial player in India's defence landscape. This strategy reflects a holistic approach to development, ensuring that growth translates into tangible benefits for the community.
NationPress
23/06/2025
Frequently Asked Questions
What is the investment target for Andhra Pradesh in aerospace and defence?
Andhra Pradesh aims to attract between Rs 50,000 crore to Rs 1 lakh crore in investments over the next five years.
What are the specialized manufacturing corridors mentioned in the policy?
The policy designates manufacturing corridors for naval systems in Visakhapatnam-Srikakulam, missile production in Jaggaiahpet-Donakonda, drone technologies in Kurnool-Orvakal, and aerospace electronics in Lepakshi-Madakasira.
What is the role of MSMEs in this initiative?
The government emphasizes strengthening MSMEs in the aerospace and defence sectors to ensure quality and value addition, with a proposed annual fund of Rs 100 crore.
What is the current contribution of public and private sectors in India's defence production?
Public sector enterprises account for 73% of India's defence production, while the private sector contributes 21%, and Public-Private Partnerships make up the remaining 7%.
What is the significance of the proposed DRDO Centre of Excellence in Tirupati?
The DRDO Centre of Excellence in Tirupati is expected to enhance research and development capabilities, positioning the region as a hub for innovation in defence technologies.
