Andhra Pradesh Charts Flight Path to ₹1 Lakh Crore Defence Investment

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Andhra Pradesh has set its sights on becoming India’s next big aerospace and defence hub, unveiling a bold new policy aimed at attracting up to ₹1 lakh crore in investments over the next five years. The state government, led by Chief Minister N. Chandrababu Naidu, is betting big on advanced technology, manufacturing corridors, and a strong ecosystem for MSMEs to drive growth and innovation in these strategic sectors.

Key Highlights:

Massive Investment Goal: The Aerospace and Defence Policy 4.0 (2025–2030) targets ₹50,000 crore to ₹1 lakh crore in investments, aiming to transform Andhra Pradesh into a national leader in aerospace and defence manufacturing.

Cluster-Based Corridors: The policy maps out specialized manufacturing corridors across the state:

Visakhapatnam–Srikakulam: Naval systems
Jaggaiahpet–Donakonda: Missile production
Kurnool–Orvakal: Drone and UAV technology
Lepakshi–Madakasira: Aerospace electronics
Tirupati: R&D and a proposed DRDO Centre of Excellence

Support for MSMEs: An annual ₹100 crore fund and logistics subsidies are planned to boost micro, small, and medium enterprises, helping them enter and thrive in the aerospace and defence supply chain.

Early Traction: Already, 23 companies have invested ₹22,000 crore in the state’s aerospace clusters, generating 17,000 jobs. Bharat Forge and MMW are among those planning further expansion.

Policy Focus: The policy emphasizes national security, self-reliance, and technological innovation, with a push for local manufacturing, R&D, and value addition.

Challenges Ahead: The state will need to ensure land availability, maintain policy stability, and build a skilled workforce to realize its ambitious vision.

With this policy, Andhra Pradesh is positioning itself not just as a manufacturing base, but as a center for cutting-edge aerospace and defence innovation.

Source: India Today, Mathrubhumi, NDTV Profit, Telangana Today, Economic Times