Prayagraj: The Uttar Pradesh government has approved a new policy aimed at boosting investment in the aerospace and defence sector and fostering foreign direct investment (FDI). The decision, taken during a cabinet meeting chaired by Chief Minister Yogi Adityanath in Prayagraj, seeks to position the state as a key player in India’s defence manufacturing ecosystem.
Key Highlights
Aerospace and Defence Policy 2024
The newly launched Aerospace and Defence Unit and Employment Promotion Policy 2024 targets investments worth Rs 50,000 crore over five years. It also aims to create 1 lakh jobs by developing a hi-tech manufacturing ecosystem within the UP Defence Industrial Corridor (UPDIC). The policy focuses on attracting large-scale A&D manufacturing projects, promoting startups, and establishing common facility centers to upskill micro, small, and medium enterprises (MSMEs). Chief Minister Yogi Adityanath stated that the policy aligns with India’s self-reliance goals in the aerospace and defence sector. Incentives include subsidies on land, stamp duty exemptions, capital support, and transport concessions. Special provisions have been introduced for women entrepreneurs.
FDI Reforms
To attract foreign industries, the state has also approved a Foreign Direct Investment (FDI) Policy offering up to 80% subsidies on land costs. This is part of broader reforms under the UP Industrial Investment and Employment Promotion Policy.
Industrial Initiatives Approved
The cabinet cleared a subsidy of Rs 106.51 crore to UPSIDA for land allotted to Ashok Leyland, which plans to establish a Rs 186 crore facility producing 2,500 buses annually. The policy changes aim to position Uttar Pradesh as a leader in defence and aerospace, contributing to India’s broader vision of doubling A&D production to $25 billion and exports to $5 billion by 2025-26.
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