Why In The News?

• The Uttar Pradesh government has revealed a comprehensive Aerospace and Defence Unit policy aimed at attracting investments and creating employment opportunities.
• It aims to draw investments and generate jobs over the next five years.
• This initiative is part of a broader strategy to position Uttar Pradesh as a very important hub in the aerospace and defence sector.

Policy Objectives:

=> The Aerospace and Defence Unit and Employment Promotion Policy 2024 aims to enhance indigenous capabilities within the aerospace and defence sectors.

=> It focuses on encouraging innovation, promoting global collaboration, and ensuring national security while boosting economic prosperity.

Investment and Employment Goals:

=> The policy sets an ambitious target of attracting Rs 50,000 crore in investments.

=> It is designed to create direct employment for 1 lakh youth across the state.

=> This investment is expected to catalyse growth in the aerospace and defence manufacturing ecosystem.

FDI Policy:

=> To encourage foreign direct investment (FDI), the state government has introduced a new FDI policy.

=> This includes offering up to 80 per cent subsidy on land to foreign firms.

=> The aim is to enhance industrial growth and attract global players to Uttar Pradesh.

Development of the Defence Industrial Corridor:

=> The policy seeks to establish a robust and efficient aerospace and defence manufacturing ecosystem within the UP Defence Industrial Corridor (UPDIC).

=> It aims to attract large manufacturing projects and Defence Public Sector Undertakings (DPSUs) to boost the sector.

Support for Startups and MSMEs:

=> The government plans to create common facility centres focused on aerospace and defence to support startups and Micro, Small, and Medium Enterprises (MSMEs).

=> These centres will enhance skills and capacities, promoting innovation and entrepreneurship within the sector.

Focus on Artificial Intelligence and Software Development:

=> The policy encourages the establishment of artificial intelligence and software development centres specifically for the aerospace and defence industries.

=> This initiative aims to align with India’s vision of self-reliance in these sectors.

Financial Incentives and Benefits:

=> Significant financial incentives are part of the policy.

=> These include front-end subsidies for aerospace and defence units, exemptions on stamp duty, and capital subsidies.

=> The government also plans to provide benefits like transportation charge exemptions and special provisions for women entrepreneurs.

National Defence Production Goals:

=> The Ministry of Defence has set a target to double India’s aerospace and defence production to USD 25 billion and exports to USD 5 billion by 2025-26.

=> By 2047, the sector is expected to contribute 25 per cent to the nation’s GDP.

Conclusion on Industrial Development:

=> The Uttar Pradesh government’s initiatives under the Aerospace and Defence Unit and Employment Promotion Policy 2024 represent a strategic move to enhance the state’s industrial landscape.

=> With a focus on innovation, investment, and employment, the policy is poised to transform Uttar Pradesh into a leader in the aerospace and defence sectors.