Andhra Pradesh Sets Sights on Becoming India's Aerospace & Defence Powerhouse
- Andhra Pradesh aims to attract Rs 50,000 Rs 1 lakh crore in aerospace and defence over five years to become India’s premier manufacturing hub.
- The state will develop dedicated corridors for naval systems, missiles, drones, and aerospace electronics, with Tirupati as an R&D centre.
- A Rs100 crore annual corpus fund and logistics subsidies will support MSMEs, with a strong push for innovation, quality benchmarks, and branding.
In a strategic move to transform Andhra Pradesh into the nation's leading aerospace and defence manufacturing hub, the state government has unveiled an ambitious plan to attract investments worth Rs 50,000 crore to Rs 1 lakh crore over the next five years.
Chief Minister N. Chandrababu Naidu reviewed the draft of the Aerospace and Defence Policy 4.0 (2025–2030) at the Secretariat on Monday. The policy envisions the development of specialised industrial corridors across the state to bolster capabilities in key sectors like naval systems, missile production, drone technologies, and aerospace electronics.
According to the proposed policy framework, the Visakhapatnam-Srikakulam corridor will focus on naval systems, while Jaggaiahpet-Donakonda is earmarked for missile manufacturing. The Kurnool-Orvakal belt will support drone technology development, and Lepakshi-Madakasira will host units focused on aerospace electronics. Tirupati is poised to emerge as a research and development powerhouse with the planned establishment of a DRDO Centre of Excellence.
Officials informed the Chief Minister that major companies such as Bharat Forge and MMW are set to invest in the Madakasira aerospace cluster, with foundation stone-laying ceremonies expected shortly. So far, 23 companies have already invested Rs 22,000 crore in the state’s aerospace and defence clusters, generating employment for 17,000 individuals.
India’s defence production market is valued at Rs 1.27 lakh crore annually, with public sector undertakings contributing 73%, private firms 21%, and Public-Private Partnerships (PPPs) covering the remaining 7%. Against this backdrop, Andhra Pradesh aims to secure a larger share of the market by enhancing its industrial ecosystem and technological capabilities.
Chief Minister Naidu emphasized the importance of positioning Andhra Pradesh as a hub of innovation and advanced defence technologies. Citing India's success in integrating modern tech during 'Operation Sindoor', he highlighted the relevance of such technologies for both national security and societal benefit.
He also proposed an annual Rs 100 crore corpus fund to support MSMEs in the sector and suggested including logistics subsidies in the policy. “MSMEs must be strengthened with quality benchmarks and value addition. Branding and marketing are just as critical. The vision of ‘One Family, One Entrepreneur’ must be realised”, he said.
Aerospace and Defence Advisor Satish Reddy also participated in the policy review via video conference and provided key recommendations.
