Amaravati: In a bid to position Andhra Pradesh as a leading hub for aerospace and defense manufacturing in the country, the state government has unveiled the “AP Aerospace-Defense Policy 4.0” for the period 2025–2030. The new policy aims to attract ₹1 lakh crore in investments and generate employment for one lakh individuals over the next five years.
Industries and Commerce Secretary N. Yuvaraj issued orders formalising the policy, which is expected to significantly boost industrial growth in high-technology sectors. The policy focuses on encouraging both large enterprises and MSMEs, including startups, to participate in the aerospace and defense ecosystem.
Cluster-Based Development Strategy
The government plans to establish multiple aerospace and defense clusters across the state under a “hub-and-spoke” model. Approximately 23,000 acres of land have already been identified for development. Special MSME parks will be created within these clusters, with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) designated as the nodal agency. These parks will be equipped with essential infrastructure such as approach roads, uninterrupted power supply, and water facilities. Both public and private lands will be utilised for setting up the clusters.
Single Desk Clearance and Incentives
To streamline approvals and facilitate faster implementation, the government will implement a Single Desk Approval system. The policy also outlines various fiscal incentives and concessions to attract investors. Authorities have assured that the policy will remain in force for five years from the date of issuance or until a new policy is announced, and that previously approved incentives will remain unchanged.
Officials expressed confidence that the new policy will strengthen Andhra Pradesh’s position in the aerospace and defense sectors while creating significant employment opportunities and attracting cutting-edge technology investments.
