The Andhra Pradesh government has launched its ambitious Aerospace and Defence Policy 4.0 (2025–2030), aiming to transform the state into a global hub for aerospace innovation, manufacturing, and defence R&D. Unveiled by Chief Minister N. Chandrababu Naidu, the policy targets ₹1 lakh crore in investments and the creation of one lakh jobs over the next five years.
🚀 Key Objectives of the Policy
- Position Andhra Pradesh as a national leader in aerospace and defence manufacturing
- Attract investments ranging from ₹50,000 crore to ₹1 lakh crore
- Promote MSMEs, startups, and technology transfer through fiscal incentives
- Establish specialised industrial clusters aligned with logistics corridors and airports
🏭 Strategic Clusters Across the State
| Cluster Location | Focus Area |
|---|---|
| Visakhapatnam–Srikakulam | Naval systems |
| Jaggaiahpet–Donakonda | Missiles and ammunition |
| Kurnool–Orvakal | Unmanned aerial systems (drones) |
| Lepakshi–Madakasira | Aerospace and electronics |
| Tirupati | R&D and DRDO Centre of Excellence |
Each cluster will span 3,000–5,000 acres, with anchor investors receiving land at 25% of market value, and others at 10%.
💰 Incentives and Support Measures
- 25–45% investment subsidies and 100% SGST reimbursement
- ₹100 crore annual corpus for MSMEs and startups
- 50% subsidy on technology acquisition (up to ₹1 crore)
- Tailor-made incentives for mega investors (₹500 crore+)
- Single-window clearance and export facilitation body
📌 Why It Matters
- Reinforces Andhra Pradesh’s vision to become a defence-tech powerhouse
- Encourages decentralised industrial growth and regional employment
- Aligns with India’s broader goals of self-reliance in defence production
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