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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%

of the supplier base for
India’s A&D

2000+

SMEs with the capability to carry out niche sub-contracting work

Sector Incentives and Policy

Incentive HeadSub Sector
4 Focus Sub SectorsElectronic ComponentsOther Sub Secotrs
Capital Investment Subsidy20% On P&M20% On P&M-
20% On Land Up To 50 Acres20% On Land Up To 50 Acres
Exemption/ Reimbursement100%100%100%
Concessional Registration
Charges
INR 1/- Per INR 1,000/-100% ReimbursementINR 1/- Per INR 1,000/-
Reimbursement Of Land
Conversion Fee
100%100%100%
Subsidy For ETP50%, 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 Incentive1% Of Annual Turnover For 5 Years1.75-2.25% Of Annual Turnover For
5-10 Years, Up To 25-60% Of VFA
Total Quantum Of IncentivesUp To 40-50% OfVFAUp 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

Priyanka G Dammanagi