UP Eyes USD 25 Bn Production & USD 5 Bn Export Target In Aerospace & Defense Sector By 2025-26

ENA State 2025-02-21 12:46:47 Lucknow, Feb 21 (KNN) Uttar Pradesh is implementing a comprehensive strategy to establish itself as a major hub in India's aerospace and defense manufacturing sector, with ambitious targets of reaching USD 25 billion in production and USD 5 billion in exports by fiscal year 2025-26. The state government's initiative centers on developing an extensive supply chain network through a dedicated defense MSME corridor, which will primarily support the Uttar Pradesh Defence Industrial Corridor (UPDIC). The state has already made significant progress toward its investment goal of Rs 50,000 crore, having secured more than Rs 30,000 crore in private investment across the corridor's six nodes located in Aligarh, Agra, Kanpur, Lucknow, Chitrakoot, and Jhansi. Notable investors include prominent organisations such as Bharat Dynamics Limited in Jhansi, Adani Defence System and Technology in Kanpur, and DRDO-BrahMos Aerospace in Lucknow. To facilitate this expansion, the state has allocated approximately 5,000 hectares of land across the six nodes, with the UP Expressway Industrial Development Authority having already acquired more than 1,500 hectares. Each node has been strategically designated for specific defense products: Aligarh focuses on drones and small arms; Kanpur specialises in military textiles and protective equipment; Jhansi concentrates on arms and ammunition; Lucknow develops aerospace technology and BrahMos missiles; and Agra houses non-polluting and electronics units. The state government, under MSME Minister Rakesh Sachan's guidance, has announced comprehensive support measures for entrepreneurs, including capital and land subsidies, stamp duty waivers, and state GST reimbursements. This initiative has been further strengthened by the recent approval of the Aerospace and Defence Unit and Employment Promotion Policy 2024, which aims to create 100,000 jobs and offers foreign investors up to 80 percent subsidy on land acquisition. Through these coordinated efforts, Uttar Pradesh is positioning itself to create a robust indigenous supply chain that will significantly contribute to India's defense manufacturing capabilities while simultaneously boosting the state's economic development through local vendor participation. (KNN Bureau) 41151 https://knnindia.co.in/news/newsdetails/state/up-eyes-usd-25-bn-production-usd-5-bn-export-target-in-aerospace-defense-sector-by-2025-26 2025-02-21 12:46:47 knnindia.co.in UP Eyes USD 25 Bn Production & USD 5 Bn Export Target In Aerospace & Defense Sector By 2025-26