Chandrababu Naidu Seeks Up To Rs 1 Lakh Crore Investment In Andhra Aerospace, Defence Sector
Chandrababu Naidu also proposed an annual corpus fund worth Rs 100 crore, along with the incorporation of logistics subsidies in the new policy, according to a press release.
Andhra Pradesh's Chief Minister N. Chandrababu Naidu has set a target to court investments ranging from Rs 50,000 crore to Rs 1 lakh crore in the aerospace and defence sector over the next five years.
This was part of Naidu's policy review of the Aerospace and Defence Policy 4.0 (2025–2030) at the Secretariat. Aerospace and Defence Advisor Satish Reddy was also part of the review.
Naidu also proposed an annual corpus fund worth Rs 100 crore, along with the incorporation of logistics subsidies in the new policy, according to a press release.
The policy classified specialised manufacturing corridors across Andhra Pradesh: Visakhapatnam-Srikakulam for naval systems, Jaggaiahpet-Donakonda for missile production, Kurnool-Orvakal for drone technologies, Lepakshi-Madakasira for aerospace electronics and Tirupati for research and development with the proposed DRDO Centre of Excellence.
Bharat Forge and MMW are preparing to invest in the Madakasira cluster, with the foundation stone to be laid soon, according to the release.
Naidu emphasised the importance of supporting micro, small and medium enterprises. “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 realised,” he said.
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Naidu aims to position the state as a hub for the development of advanced technologies and innovation in the aerospace and defence industries.
He highlighted the use of modernised military technology during 'Operation Sindoor'. The applications for such innovations would also improve Indians' daily lives outside of defence, he said.
Naidu recommended several amendments to the policy to keep national security as the main focus.
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%, according to the release.
As of now, 23 companies have invested Rs 22,000 crore in Andhra Pradesh’s aerospace and defence clusters, creating employment for 17,000 people, it stated.
