Uttar Pradesh Approves Aerospace and Defence Policy to Attract Investment and Create Jobs

The Uttar Pradesh government has approved a new Aerospace and Defence Unit policy aimed at attracting Rs 50,000 crore in investments and creating one lakh jobs over the next five years. The policy, which was approved by the state cabinet led by Chief Minister Yogi Adityanath, is designed to enhance the state's aerospace and defence sector by developing a manufacturing ecosystem within the Uttar Pradesh Defence Industrial Corridor (UPDIC).

Key provisions of the policy include subsidies for land and capital investment, as well as exemptions on transportation charges. The policy also targets the development of Artificial Intelligence and software development centers in the sector. Additionally, special incentives have been introduced to support women entrepreneurs.

The initiative is expected to promote indigenous capabilities, foster innovation, and encourage global partnerships in the aerospace and defence industry. It aligns with the Indian Ministry of Defence’s goal to increase the country’s aerospace and defence production to USD 25 billion and exports to USD 5 billion by 2025-26. The policy aims to contribute to India’s broader objective of making the aerospace and defence sector a significant contributor to the national economy by 2047.

In addition to the aerospace and defence policy, the Uttar Pradesh cabinet also approved a Foreign Direct Investment (FDI) policy offering up to 80 percent subsidy on land for foreign companies investing in the state. The cabinet also discussed a subsidy for Ashok Leyland Ltd. to support the establishment of a new facility for bus production, expected to have a capacity of 2,500 buses per year.

Furthermore, the cabinet approved measures to promote industrial development, including capital subsidies for specific companies and SGST reimbursements for others. The state has also sanctioned Rs 250 crore in capital subsidies for Triveni Engineering and Industries Ltd., and Rs 10,749 crore in SGST reimbursement for Gallant Ispat Ltd.

The cabinet also approved the creation of an independent Prosecution Directorate to ensure impartial prosecution in the state. The directorate will function under the Home Department and have a minimum of three years tenure for its director. The establishment of this directorate follows the Indian Civil Defence Code 2023, with each district in the state to have its own prosecution office.

These developments are part of the state’s broader push to boost industrial and economic growth through policy reforms and increased investment.