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Andhra Pradesh sees surge in aerospace & defence investment proposals
Industry News- May 12,25
To support these developments, the Andhra government is finalising its Aerospace & Defence Policy 4.0 (2025–29), which includes tailor-made incentives and plans for four industrial clusters focusing on naval shipbuilding, MRO, missile and ammunition production, and defence electronics.
Andhra Pradesh is emerging as a promising hub for aerospace and defence manufacturing, with several OEMs—primarily MSMEs producing niche technologies—submitting proposals to set up facilities in the state. The state's recent appointments of G Satheesh Reddy Former Chairman, DRDO and former S Somanath, Chairman, ISRO as advisors have played a crucial role in boosting investor confidence.
A notable proposal includes a Taiwanese firm's interest in setting up a semiconductor plant in Kurnool under the India Semiconductor Mission. Domestic defence technology firms like Avantel Ltd and Astra Microwave Products Ltd are also exploring opportunities. Avantel, known for its communication systems for the Indian Navy, has sought land near Nuzvid in Eluru district.
Public sector firm Bharat Dynamics Ltd is looking to expand its Visakhapatnam SEZ unit, while Goa Shipyard and other defence PSUs are actively exploring investment options in the state.
To support these developments, the Andhra government is finalising its Aerospace & Defence Policy 4.0 (2025–29), which includes tailor-made incentives and plans for four industrial clusters focusing on naval shipbuilding, MRO, missile and ammunition production, and defence electronics. Inspired by France’s OEM-led cluster model, the policy aims to attract investments in Jaggaiahpet (due to its proximity to Hyderabad) and the Orvakal and Kopparthy clusters located in key industrial corridors.
(The Hindu)
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