Bengaluru, India (CU)_ In an attempt to boost the aviation industry of southern states, about 34 aerospace and defense companies have revealed interest to invest INR 2,464 crore to set up their firms in Karnataka. During the 13th edition of the Aero India 2021 expo on February 3-5 at the Yelahanka air base on the suburbs of the city, the contracts were signed.
An official of the Udyog Mitra’s Industry Department said, “In all, 34 aerospace and defense firms have signed an agreement with the state government to invest a total of Rs 2,464 crore in setting up their facilities, which have the potential to create 6,462 direct jobs”. Karnataka has been ranked first in the latest Innovation Index of the policy think tank NITI Aayog. This investment in Karnataka has a potential to create 6,462 direct jobs and will also attract other firms to invest in aerospace sector.
The aerospace and defense companies that invested in Karnataka are Abhyuday Bharat defense cluster with INR 1,000 crore investment plan, Gopalan Aerospace Ltd with INR 438 crore, Alpha Modeling Technology and Tesbl Aerospace Corporation with INR 250 crore each and others. Being the aerospace center of the nation, numerous state-operated and private companies such as the defense behemoth Hindustan Aeronautics Ltd (HAL), BEL, BEML, NAL, DRDO, ADA, ADE and ISRO are located in Bengaluru.
Jagadish Shettar, state’s Industries Minister, stated, “We have a vibrant aerospace and defense sector ecosystem, which enabled the state to contribute 65 per cent of exports from the country. The proposed investing firms will attract others to invest in the aerospace sector”. He added, “With an investor-centric approach, our new industrial policy (2020-25) offers incentives for investing in the state, with regulatory reforms for access to land and labor”.
Around 25% of the country’s aircraft and spacecraft industries that contribute to around 67% of aircraft and helicopters for defense services are based in Bengaluru. The state also follows an ancillary industry ecosystem with a committed aerospace procedure to assist state-operated defense units, R&D centers, scientific and technical institutes and 2,000 small, micro and medium-sized enterprises.
