UP Defence Policy: In a Cabinet meeting held in Prayagraj under the leadership of Uttar Pradesh Chief Minister Yogi Adityanath, the state government approved 10 key development proposals. One of the major highlights was the introduction of the Aerospace and Defence Unit and Employment Promotion Policy 2024.
This ambitious policy is designed to transform Uttar Pradesh into a leading hub for the aerospace and defence (A&D) sector. It sets a target to attract Rs 50,000 crore in investments while generating direct employment for 1 lakh youth across the state.
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As per India Today, the policy emphasizes creating a robust and advanced A&D manufacturing ecosystem within the Uttar Pradesh Defence Industrial Corridor (UPDIC). It aims to enhance indigenous capabilities, foster innovation, and promote global collaboration to boost national security and economic growth.
The initiative will encourage the development of state-of-the-art facilities, attract startups, and support research and innovation in the A&D sector. A&D-based common facility centers are also planned to strengthen the skills of startups and MSMEs within the UPDIC.
To support these efforts, the policy offers a range of incentives, including front-end subsidies, land subsidies, stamp duty exemptions, and capital subsidies. Special provisions have been made to encourage women entrepreneurs, along with exemptions on transportation charges for businesses. The policy also focuses on establishing artificial intelligence and software development centers to modernize the A&D sector further.
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“An investment of Rs 50,000 crore and fresh job creation of 250,000 are expected to take place across the six nodes of the Corridor,” a senior UP government official said last year, according to Buisness Standard.
The Ministry of Defence has set ambitious goals to double the country’s A&D production to $25 billion and exports to $5 billion by 2025-26. By 2047, the A&D manufacturing sector is expected to contribute 25% to India’s GDP. Uttar Pradesh, with its dedicated defence corridor, is poised to play a key role in achieving these targets.
Additionally, the Yogi Cabinet approved a new Foreign Direct Investment (FDI) policy to encourage foreign industries to invest in Uttar Pradesh. This includes offering up to 80% land subsidies for foreign firms, along with reforms in the UP Industrial Investment and Employment Promotion Policy to further industrial and economic development. These measures aim to position Uttar Pradesh as a vital contributor to India’s self-reliance and growth in the A&D sector.
