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

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

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.

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.

Sector Contact

Smt. Manjula M.V.

Assistant Director

Email: [email protected]