Aerospace and Defence
With 65% of India’s Aerospace related exports originating from Karnataka, the state is a preferred investor destination for Aerospace & Defence companies. Karnataka’s strong ecosystem blossomed with decades of presence of PSUs like HAL, DRDO, BEML. Today the state is home to all major global leaders like Airbus, Boeing etc.
25%
of India’s aircraft and spacecraft industry
67%
of all aircraft and helicopter manufacturing for Defence services
70%
supplier base for India’s A&D industry
2000+
SMEs with capability to carry out niche sub-contracting work
25%
of India’s aircraft and spacecraft industry
67%
of all aircraft and helicopter manufacturing for Defence services
70%
supplier base for India’s A&D industry
2000+
SMEs with capability to carry out niche sub-contracting work
Table of contents
Incentives
Investment promotion subsidy of upto 10% of turnover for 5 years for Micro & Small Industries (upto INR 1 Cr.) and upto 2.5% of turnover for Medium enterprises for upto 6 years (upto 40% of value of fixed assets)
Upto 100% exemption on stamp duty
Low concessional registration charges of 0.1%
Upto 100% exemption on electricity duty for 8 years
Reimbursement of cost of power paid at INR 1/unit for 3 years
50% subsidy on cost of ETP (Max INR 50 L)
5% interest subsidy on technology upgradation loan for upto 6 years
Upto 2.25% of turnover as investment promotion subsidy for 6-10 years upto 40-60% of fixed asset value
Upto 100% exemption on stamp duty
Low concessional registration charges of 0.1%
Upto 100% reimbursement on land conversion fee
50% subsidy on cost of CETP/ETP/STPs (upto INR 6 Cr.)
Investment subsidy for anchor industries of upto INR 10 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 opportunityz
Sector Champion
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.
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.
Growth drivers
Robust A&D ecosystem
Bengaluru is ranked among top 3 global Aerospace cities in attracting foreign investments – Aerospace cities of the future ranking by FDI intelligence
Strong adjacent industry support
Karnataka is also a leading innovator in Machine tools, Capital goods, ESDM and software sectors which provide un-paralleled advantage to A&D companies based in Karnataka
Pioneering research environment
India's first multi-skill training institute coming up in partnership with GoI, NSDC and BCIC
Centre of excellence
Government of Karnataka partners with Dassault Systems to set up the Center of Excellence in Aerospace and Defence.
