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Aerospace & Defence
With 65% of India’s Aerospace related exports originating from Karnataka, the state is a preferred investor destination for Aerospace & Defence companies and the second highest producer of heavy electrical machinery in India. The state house country’s top research & design institutions like DRDO, ISRO, HAL, BEML. Today the state is home to all major global leaders like Airbus, Boeing etc. Bengaluru is among the top 3 global Aerospace cities in attracting foreign investments and 1st in terms of Aerospace FDI jobs created.
25%
of India’s aircraft and spacecraft industry is based in Karnataka
67%
of all Aircraft and Helicopters manufacturing for Defence services
70%
India’s A&D
2000+
SMEs with the capability to carry out niche sub-contracting work
Sector Incentives and Policy
Incentive Head | Sub Sector | ||
---|---|---|---|
4 Focus Sub Sectors | Electronic Components | Other Sub Secotrs | |
Capital Investment Subsidy | 20% On P&M | 20% On P&M | - |
20% On Land Up To 50 Acres | 20% On Land Up To 50 Acres | ||
Exemption/ Reimbursement | 100% | 100% | 100% |
Concessional Registration Charges | INR 1/- Per INR 1,000/- | 100% Reimbursement | INR 1/- Per INR 1,000/- |
Reimbursement Of Land Conversion Fee | 100% | 100% | 100% |
Subsidy For ETP | 50%, Up To INR 250 Lakh | - | 50%, Up To INR 250 Lakh 2 |
Power Tariff Reimbursement | - | INR 1 Per Unit For 5 Years | - |
Exemption From Electricity Duty | - | 100% For 5 Years | - |
Production Linked Incentive | 1% Of Annual Turnover For 5 Years | 1.75-2.25% Of Annual Turnover For 5-10 Years, Up To 25-60% Of VFA | |
Total Quantum Of Incentives | Up To 40-50% OfVFA | Up To 100% Of VFA | - |
Units providing integrated end assemblies for civil and defence aviation, maintenance repair & overhaul (MRO), units manufacturing for space applications including LEO satellites, composite manufacturing and 3D printing for aerospace & defence applications; minimum investment size for units providing integrated end assemblies for civil and defence aviation – INR 1,000 Cr, minimum investment size for MRO facility – INR 500 Cr
New initiatives & opportunities

North cluster
India’s first private Aerospace SEZ with ~250 Acres area situated in Belagavi for A&D manufacturing and assembly

Central cluster
Aerospace research and innovation Centre collocated with IISc at Chitradurga. Flying training school at Davangere

South cluster
Hi-tech Aerospace and Defence park with ~1000 Acre area situated in Devanahalli, Bangalore for access to vast A&D ecosystem in Bangalore

MRO
World class Maintenance, Repair and Operations (MRO) facility planned in Bangalore, Mysuru to leverage recently announced tax rationalization
Initiatives and Growth Drivers

Dedicated A&D Parks
Hi-tech Aerospace & Defence Park, Devanahalli (~2000 acres)and Aerospace and Defence SEZ, Belagavi (200+ acres) with manufacturing capabilities across forging, precision machining, surface treatment & aero assemblies

A&D Hubs
Government of Karnataka is also developing aerospace and defence hubs in Bengaluru, Belagavi, Mysuru, Tumakuru and Chamarajanagara

Center of Excellence
Karnataka has set up center of excellence in partnership with Dassault Systems to provide industry-ready manpower

Research and Technology Development
Bangalore is home to largest research and technology development centers for Airbus and Boeing, outside their home locations

Aerospace research and innovation centre
Collocated with IISc at Chitradurga. Flying training school at Davangere.
Sector Champions

Udayant Malhoutra
CEO & Managing Director
Dynamatic Technologies Limited
[email protected]
Dynamatic Technologies Limited designs and builds highly engineered products for Automotive, Aeronautic, Hydraulic and Security applications. With futuristic design, engineering and manufacturing facilities in Europe and India, the company is able to meet customers’ exacting requirements on 6 continents.

Salil Gupte
President
Boeing India
[email protected]
Boeing has been a strong partner of India’s aerospace sector for almost eight decades, both as the mainstay of India’s commercial aviation sector as well as an important partner in the mission readiness and modernization of India’s defense forces. Headquartered in Delhi, Boeing’s India operations include field service offices in Mumbai, Hindan, Rajali and New Delhi, and a rapidly growing Boeing India Engineering & Technology Center (BIETC) in Bengaluru and Chennai. The upcoming Boeing engineering and technology campus in Bengaluru, Karnataka will conduct core engineering and research for Boeing’s iconic products as well as future platforms. The campus will be one of the largest for Boeing, outside of the US.

















Sector Contact
Email: [email protected]
Phone: 9611548094