The policy aims to attract investments worth between ₹50,000 crore and ₹1 lakh crore over the next five years. It focuses on bolstering national security, promoting innovation, and generating employment across the sector.
Published Jun 23, 2025 | 6:39 PM ⚊ Updated Jun 23, 2025 | 6:39 PM
Andhra Pradesh Chief Minister N Chandrababu Naidu. (X)
Synopsis: Andhra Pradesh has unveiled an ambitious Aerospace and Defence Policy 4.0, aiming to attract up to ₹1 lakh crore in investment and transform the state into India’s foremost hub for defence and aerospace manufacturing. A key pillar of the policy is support for Micro, Small and Medium Enterprises, alongside a cluster-based development model that designates specific corridors for sectoral growth.
Andhra Pradesh Chief Minister N Chandrababu Naidu has unveiled an ambitious roadmap to position the state as India’s leading hub for aerospace and defence manufacturing.
The announcement came during a review of the Aerospace and Defence Policy 4.0 (2025–2030) at the State Secretariat in Velagapudi, Amaravati, on Monday, 23 June.
The policy aims to attract investments worth between ₹50,000 crore and ₹1 lakh crore over the next five years. It focuses on bolstering national security, promoting innovation, and generating employment across the sector.
During the review, Naidu highlighted Andhra Pradesh’s potential to lead in advanced technologies for aerospace and defence.
Referring to India’s deployment of high-end systems in missions such as Operation Sindoor, he said:
“Modern technology is critical for national defence and improving daily lives.”
He further stressed that the policy should prioritise industries linked to national security and internal safety.
The Chief Minister called for a sharper focus on these sectors, taking suggestions from Aerospace and Defence Advisor Satish Reddy, who participated in the meeting via video conference.
A key pillar of the policy is support for Micro, Small, and Medium Enterprises (MSMEs).
Naidu called them essential to outpacing other states and proposed a ₹100 crore annual corpus fund, along with logistics subsidies, to support these enterprises.
He underlined the need to establish strong quality standards across allied industries.
“Value addition, marketing, and branding are essential. We must realize the vision of ‘One Family, One Entrepreneur,’” he added.
The policy envisions a cluster-based development model, designating specific corridors for sectoral growth:
Additionally, Tirupati will host a DRDO Centre of Excellence to spearhead research and development.
India’s annual defence market, valued at ₹1.27 lakh crore, is currently dominated by public sector undertakings (73 percent), with the private sector (21 percent) and public-private partnerships (7 percent) playing relatively smaller roles.
Andhra Pradesh now aims to capture a significant portion of this market through the new policy.
Officials informed the Chief Minister that companies such as Bharat Forge and MMW plan to invest in the Madakasira cluster, with foundation stones to be laid shortly.
The state’s aerospace and defence sector has already drawn ₹22,000 crore in investments from 23 companies, creating around 17,000 jobs.
In a separate development, Municipal Administration Minister P Narayana announced fresh land allotments in Amaravati to rebuild investor confidence and reposition the city as a thriving economic hub.
He reviewed issues affecting the revival of the capital city, which, he said, had stalled due to the previous YSRCP regime’s “three capitals” policy.
“Mismanagement and confusion drove institutions away from Amaravati,” he said, adding that several organisations which were allotted land earlier are now hesitant to engage.
To address this, the Cabinet Sub-Committee on land allotments – chaired by Narayana and attended by Minister TG Bharat in person and Ministers Payyavula Keshav and Durgesh via video link – convened its 18th meeting earlier in the day. The panel approved 12 of 16 proposals.
These include:
Allotments made between 2014 and 2019 to Gail India Private Limited and Ambika Agar Batti Agro were cancelled due to non-compliance.
Furthermore, six new institutions were granted land. These include:
Narayana said that between 2014 and 2019, 1,270 acres had been allocated to 130 institutions, many of which later pulled out due to policy uncertainty. So far, 884 acres have been allotted to 64 institutions, with the latest decisions adding 10 more.
The Minister expressed optimism about the capital’s revival, stating that over 10,000 construction workers are currently active, and that this figure will rise to 20,000 after the monsoon.
“Allocated institutions will begin construction soon, driving rapid development,” he told media persons.
Ongoing consultations are focused on bringing back institutions that had earlier withdrawn, reinforcing Amaravati’s image as a stable and attractive destination for investment.
(Edited by Dese Gowda)
