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Make in Andhra Pradesh Aerospace and Defence Manufacturing Policy 2026-2030

Empowering India's Defence Future

Make in Andhra Pradesh proudly presents the Andhra Pradesh Aerospace and Defence Manufacturing Policy 2026, a bold and transformative initiative aimed at positioning Andhra Pradesh as the leading destination for aerospace and defence manufacturing in India. Andhra Pradesh, with its advanced industrial infrastructure, strategic location, and rich talent pool, is uniquely equipped to drive the nation’s ambitions for self-reliance in defence production.

As India’s largest state economy, Andhra Pradesh has long been a hub for innovation, industry, and advanced manufacturing. The aerospace and defence sector is poised for significant growth, and Andhra Pradesh is committed to harnessing this potential by attracting investments, promoting indigenous research and development (R&D), and creating a world-class ecosystem of suppliers and manufacturers.

Aerospace and Defence Manufacturing

Vision for 2030
Andhra Pradesh as a Global Aerospace and Defence Manufacturing Hub

dedicated aerospace

By 2026, Andhra Pradesh aims to become the leading destination for Aerospace and Defence Manufacturing, both in India and globally. The state’s vision includes:

  • Attracting ₹25,000 crores in investments: Creating a favorable environment to attract manufacturers, suppliers, and ancillary businesses to the aerospace and defence sector.
  • Developing dedicated manufacturing clusters: Establishing aerospace and defence hubs in Vijayawada, Nagpur, and Nashik, with world-class infrastructure, innovation centers, and cutting-edge R&D facilities.
  • Building a robust ancillary ecosystem: Fostering collaboration and supply chain efficiency by developing a network of local manufacturers, suppliers, and vendors through a cluster-based approach.
  • Creating 50,000 jobs: Generating new employment opportunities in the aerospace and defence sector by implementing targeted skill development programs and forging industry partnerships.

Mission
Transforming Andhra Pradesh into a Defence Manufacturing Powerhouse

The Andhra Pradesh Aerospace and Defence Manufacturing Policy 2026 reflects Make in Andhra Pradesh’s commitment to building a world-class ecosystem that strengthens India’s aerospace and defence capabilities. The policy’s key objectives include:

  • Attract large-scale investments: Drive large-scale investments into the aerospace and defence manufacturing sector, fueling industrial growth in Andhra Pradesh.
  • Foster innovation and R&D: Promote cutting-edge aerospace and defence technologies through collaborations with national institutions like the Defence Research and Development Organisation (DRDO) and Hindustan Aeronautics Limited (HAL).
  • Establish dedicated clusters: Develop specialized aerospace and defence manufacturing clusters, encouraging the local production of advanced defence technologies.
  • Develop industry-ready manpower: Support skill development initiatives to cultivate a pipeline of engineers, technicians, and researchers specialized in aerospace and defence, ensuring a steady supply of skilled professionals for the sector.
aerospace capabilities

Key Objectives
Empowering Andhra Pradesh’s Defence Manufacturing Sector

The Andhra Pradesh Aerospace and Defence Manufacturing Policy 2026 aims to achieve the following ambitious goals:

  1. Attracting Investments: Andhra Pradesh targets ₹25,000 crores in domestic and international investments in aerospace and defence manufacturing by creating a conducive business environment that prioritizes ease of doing business.
  2. Building a Strong Ancillary Ecosystem: The policy focuses on establishing a resilient network of local manufacturers, suppliers, and vendors through a cluster-based approach, ensuring an efficient and reliable supply chain.
  3. Harnessing Institutional Potential: With the support of leading institutions like DRDO, HAL, and Ordnance Factories, Andhra Pradesh will drive the development of indigenous aerospace and defence technologies, catering to both domestic and global markets.
  4. Promoting R&D and Innovation: The policy fosters a thriving innovation ecosystem by encouraging R&D in cutting-edge aerospace and defence technologies, positioning Andhra Pradesh as a hub for indigenously developed solutions.

Fostering Skill Development: Andhra Pradesh is committed to advancing skill development in aerospace and defence manufacturing by partnering with industry leaders and academic institutions to cultivate a workforce ready to meet the demands of this growing sector.

Strategic Focus Areas
Pioneering Andhra Pradesh’s Defence Sector Growth

To realize its vision, Andhra Pradesh is adopting a focused strategy to build a vibrant aerospace and defence ecosystem:

Dedicated Aerospace and Defence Clusters

Andhra Pradesh will develop dedicated aerospace and defence clusters in strategic locations, including Nagpur, Vijayawada, and Nashik. These clusters will feature state-of-the-art infrastructure, advanced R&D centers, and incubation hubs to support start-ups and innovators in the defence sector. This initiative aims to foster collaborative innovation and establish Andhra Pradesh as a global leader in aerospace and defence manufacturing.

Aerospace and Defence Clusters
Innovation and Indigenous

Fostering Innovation and Indigenous R&D

Make in Andhra Pradesh aims to advance indigenous R&D by collaborating with leading organizations like DRDO, HAL, and Ordnance Factories, while leveraging the state’s robust academic and industrial ecosystem. These partnerships will accelerate the development of cutting-edge aerospace and defence technologies, including advanced missile systems, combat aircraft, and unmanned aerial vehicles (UAVs).

Skill Development for Industry-Ready Talent

Andhra Pradesh will drive skill development by partnering with premier technical institutions and global aerospace leaders. Collaborations with institutes such as IIT Bombay, VJTI, and centers of excellence will deliver specialized training programs in advanced aerospace technologies and defence manufacturing, creating a highly skilled workforce to meet industry demands.

Industry-Ready Talent
investment destination

Strengthening the Ease of Doing Business

Andhra Pradesh will enhance ease of doing business by introducing a fully integrated online Single Window Portal, streamlining regulatory approvals for aerospace and defence manufacturing units. This platform will enable seamless application submissions and clearance tracking, ensuring approvals are granted within stipulated timelines. The initiative positions Andhra Pradesh as a competitive and investor-friendly destination.

Incentives for Aerospace and Defence Manufacturing

The Andhra Pradesh Aerospace and Defence Manufacturing Policy 2026 provides a range of fiscal and non-fiscal incentives to attract investments, support R&D, and foster skill development.

Incentive TypeDetails
Capital Investment Subsidy25% subsidy on fixed capital investments (excluding land), up to ₹50 crores per project.
Land ConcessionsLand at concessional rates in dedicated aerospace and defence clusters in Nagpur, Vijayawada, and Nashik.
Tax Incentives100% reimbursement of SGST for the first 7 years for eligible units.
Power Tariff Subsidy30% reimbursement of electricity tariffs for 5 years, with additional incentives for renewable energy use.
R&D Grants50% reimbursement of R&D costs, capped at ₹2 crores per annum for successful technology development.
Skill Development Incentives50% reimbursement for skill development programs, up to ₹1 crore annually for aerospace and defence companies.
Recruitment Assistance₹15,000 per new recruit for a period of three years for local hires in aerospace and defence sectors.

Ease of Doing Business
Streamlined Approvals and Clearances

Andhra Pradesh will launch a Single Window Portal to streamline investments and operations in the aerospace and defence manufacturing sector. This digital platform will simplify application submissions, approval tracking, and clearance issuance. Backed by the Andhra Pradesh Right to Public Services Act, the state ensures all approvals are granted within stipulated timelines, fostering a business-friendly environment for investors.

Single Window Portal
Aerospace and Defence Industry

Conclusion
Andhra Pradesh Leading India’s Aerospace and Defence Industry by 2030

The Andhra Pradesh Aerospace and Defence Manufacturing Policy 2026 aims to position the state as India’s premier hub for aerospace and defence manufacturing. By driving innovation, supporting indigenous R&D, and cultivating a robust ecosystem of manufacturers, suppliers, and vendors, Andhra Pradesh is set to become a cornerstone in the nation’s journey toward self-reliance in defence production.

Make in Andhra Pradesh invites global investors, aerospace and defence manufacturers, and technology innovators to join this transformative journey and contribute to building a secure, self-reliant India.

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About Make in Andhra Pradesh

Make in Andhra Pradesh is on a mission to establish the state as a global leader in economic collaboration, driving strategic partnerships with key nations such as the USA, Europe, Australia, the African Union, KSA, China, India, Qatar, Saudi Arabia, Türkiye, and the UAE. Our focus spans critical sectors like energy, technology, agriculture, and finance, as we seek to integrate lessons from successful global economic models and adopt best practices for sustainable, inclusive growth. Our vision is to accelerate economic prosperity, diversify industries, and foster societal progress. We are committed to promoting sustainable economic practices that ensure long-term growth while enhancing Andhra Pradesh’s role on the global stage. By leveraging the state’s unique geographical advantage and infrastructure, Make in Andhra Pradesh is poised to drive transformative economic growth, ignite innovation, and elevate the state’s stature within the international economic arena. This aligns seamlessly with the government’s vision of building a technologically advanced, interconnected economy.

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