AP eyes mobilising Rs.50K lakh crore to 1 lakh crore from investors in aerospace sector

The Aerospace and Defense Policy of Andhra Pradesh 4.0 for 2025-30 aims to attract an investment of Rs.50,000 crore to Rs.1 lakh crore In the next five years.

India’s annual defence product market is valued at Rs.1.27 lakh crore, with public sector enterprises accounting for 73% of production. The private sector contributes 21%, while public-private partnerships account for the remaining 7%. As of now, 23 companies have invested Rs.22,000 crores in Andhra Pradesh’s aerospace and defence clusters, creating employment for 17,000 people.

Chief Minister N. Chandrababu Naidu disclosed this at a high-level meeting here on Monday that the policy sets a bold target of attracting investments ranging from Rs.50,000 crore to Rs.1 lakh crore in the sector over the next five years to establish Andhra Pradesh as India's premier aerospace and defence manufacturing hub.

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 s.100 crore corpus fund and the inclusion of logistics subsidies in the new policy.

He 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 emphasized the importance of developing such technologies for both defence applications and improving daily lives.

Highlighting the future potential in national defence and internal security, Naidu said the new policy should play a key role in facilitating the establishment of industries aligned with these priorities and suggested several amendments to ensure national security remains a top focus. Aerospace and Defense Advisor Satish Reddy joined the review via video conference and offered suggestions.

“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.

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

Ministers Kondapalli Srinivas and TG Bharat attended the meeting along with Commerce & Industries Secretary, N. Yuvraj.