Andhra Eyes ₹1 Lakh Cr Investment in Aerospace, Defence Sector

• Andhra Pradesh targets ₹50,000 cr–₹1 lakh cr defence investments.
• Special zones planned for naval, missile, drone tech.
• Focus on MSMEs, security, and ₹100 cr annual fund.

The Andhra Pradesh government has announced an ambitious plan to attract ₹50,000 crore to ₹1 lakh crore worth of investments in aerospace and defence over the next five years, with the aim of making Andhra Pradesh India’s leading manufacturing hub in aerospace and defence.

Andhra Pradesh’s latest aerospace and defence policy identifies specialised manufacturing corridors within the state to develop it as an advanced technology and innovation hub.

The Visakhapatnam-Srikakulam corridor will address naval systems, the Jaggaiahpet-Donakonda corridor will deal with missile manufacturing, the Kurnool-Orvakal corridor will address drone technologies and the Lepakshi-Madakasira corridor will address aerospace electronics. The government will also establish an R&D centre in Tirupati where the DRDO Centre of Excellence is proposed.

In a review at the Secretariat, Andra Pradesh's Chief Minister N Chandrababu Naidu stated that Andhra Pradesh needs to become a centre for advanced technologies and innovation in aerospace and defence. Officials highlighted that 23 companies had already invested ₹22,000 crore in the sector resulting in 17,000 jobs. Bharat Forge and MMW are getting ready to invest in the Madakasira cluster and are starting groundwork for this investment.

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India sets an estimated market value of ₹1.27 lakh crore on defence products every year, with 73% of production output being from public sector units, 21% from private sector companies, and 7% through Public-Private Partnerships.

The Chief Minister stated that it needs emphasis on Andhra Pradesh to be on the forefront when it comes to utilizing the latest cutting-edge technology for both defence and civilian purposes and pointed to modern technology having a role in missions following 'Operation Sindoor'.

He stated, "MSMEs must be strengthened. There should be a benchmark for quality in allied industries. Value addition is essential, and marketing and branding are equally important. The vision of ‘One Family, One Entrepreneur’ must be realized".

The Chief Minister asked for a policy embracing industries that would base their objectives towards the perceptions of national defence and security motives, and urged for corrective amendments to ensure national security is a driver. The Chief Minister also reiterated a need to enhance MSME participation, advocating for a yearly corpus fund of ₹100 CRORES along with logistics subsidies. Aviation and Defence Advisor Satish Reddy attended virtually and made additional suggestions.