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A.P.'s new policy targets ₹1 lakh crore investment in aerospace & defence, says Naidu
Andhra Pradesh Chief Minister N. Chandrababu Naidu on Monday unveiled an ambitious vision to transform the State into a major hub for aerospace and defence industries, setting a five-year investment target of ₹1 lakh crore under the upcoming Aerospace & Defence Policy 4.0 (2025–2030).
During a high-level review meeting held at the State Secretariat in Amaravati, the Chief Minister emphasised the need for Andhra Pradesh to capitalise on the growing national and global demand for defence technology and innovation. He stated that the new policy aims to attract investments ranging between ₹50,000 crore and ₹1 lakh crore over the next five years, positioning the State at the forefront of aerospace and defence manufacturing.
'Andhra Pradesh must become a nucleus for innovation in aerospace and defence. We must not only adopt cutting-edge technology for national security but also commercialise it for broader use,' Mr. Naidu said, noting the increasing role of advanced technology in modern warfare and operations like 'Sindoor'.
To decentralise growth and ensure regional participation, the policy proposes establishing dedicated defence and aerospace clusters across the State.
Highlighting the future potential in national defence and internal security, Mr. Naidu said the new policy should play a key role in facilitating the establishment of industries aligned with these priorities. He suggested several amendments to ensure national security remains a top focus.
The Chief Minister gave special attention to promoting MSMEs within the aerospace and defence ecosystem. He announced a proposed annual corpus fund of ₹100 crore to support MSMEs, alongside logistics subsidies and branding support. 'MSMEs must be empowered to become globally competitive. Quality benchmarking, value addition, and branding are key. Our vision is to realise the dream of 'One Family, One Entrepreneur',' he added.
Dedicated corridors
The policy designates specialised manufacturing corridors across Andhra Pradesh. The government plans a Naval cluster between Visakhapatnam and Srikakulam and missile and weapon manufacturing between Jaggayyapeta and Donakonda. Similarly, unmanned aerial vehicles and drone production at Kurnool–Orvakal, and aerospace and electronics cluster at Lepakshi–Madakasira. Tirupati to emerge as a research and development hub with a proposed DRDO Centre of Excellence. Private giants like Bharat Forge and MMW are ready to invest in the Madakasira cluster, with foundation works expected soon.
According to State officials, Andhra Pradesh already houses 23 aerospace and defencecompanies that have invested a total of ₹22,000 crore, generating employment for around 17,000 people. Nationally, the defence production value stands at ₹1.27 lakh crore, with public sector units contributing 73%, private players 21%, and the rest through PPP models.
Ministers Kondapalli Srinivas and T.G. Bharat, and Commerce & Industries Secretary Yuvaraj were present. Defence Advisor Satheesh Reddy also joined the discussions via video conference, offering strategic inputs for the new policy.
