Andhra sets Rs.1 lakh crore investment target in aerospace, Defence

The government proposed to develop specialised manufacturing corridors across the state for naval systems, missile production and drone technologies.

Chief Minister N. Chandrababu Naidu on Monday reviewed the Aerospace and Defence Policy 4.0 (2025–2030) at the Secretariat.

The policy designates specialised manufacturing corridors across Andhra Pradesh: Visakhapatnam-Srikakulam for naval systems, Jaggaiahpet-Donakonda for missile production, Kurnool-Orvakal for drone technologies, and Lepakshi-Madakasira for aerospace electronics. Tirupati will emerge as an R&D powerhouse with the proposed DRDO Centre of Excellence.

Officials briefed the Chief Minister that Bharat Forge and MMW companies are preparing to invest in the Madakasira cluster, with the foundation stone to be laid soon.

The Chief Minister was informed that 23 companies have so far invested Rs 22,000 crore in Andhra Pradesh’s aerospace and Defence clusters, creating employment for 17,000 people.

It was noted that India’s annual Defence product market is valued at Rs 1.27 lakh crore, with public sector enterprises accounting for 73 per cent of production. The private sector contributes 21 per cent, while Public-Private-Partnerships account for the remaining 7 per cent.

The Chief Minister emphasised the need to position the state as a hub for advanced technologies and innovation in the aerospace and Defence sectors.

Citing India’s use of modern technology during 'Operation Sindoor', he underscored the growing role of technology in national defence. He also emphasised the importance of developing such technologies for both Defence applications and improving daily lives.

Highlighting the future potential in national defence and internal security, he 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. Aerospace and Defence Advisor Satish Reddy joined the review via video conference and offered suggestions.

The Chief Minister underscored the importance of supporting MSMEs in this sector, noting that Andhra Pradesh should outperform other states in this regard. He proposed an annual Rs 100 crore corpus fund and the inclusion of logistics subsidies in the new policy.

“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,” he said.