The policy, as the minister pointed out, will offer enhanced incentives for MSMEs to facilitate and provide a level playing field in order to make them competitive
The government of Karnataka is preparing to launch the new Aerospace and Defence Policy by the end of 2021. The State’s existing policy on the vertical is valid till 2023.
“The new policy will be introduced as part of the government’s proactive approach to update our policy to provide a key push for this important sector,” noted Murugesh Nirani, Large and Medium Industries Minister for the State of Karnataka.
In draft stages, the policy most probably will be made public by the end of December 2021. The policy, as the minister pointed out, will offer enhanced incentives for MSMEs to facilitate and provide a level playing field in order to make them competitive as part of the new A&D policy.
The government of Karnataka is also developing a 1,200 acre defence and aerospace park in Devanahalli. The announcement of the same might also be made around the month of December 2021. Karnataka was the first Indian state to announce a A&D policy.
The minister also noted that 25 per cent of India’s aircraft and spacecraft industry is based in Karnataka. “More than 67 per cent of all Aircraft and Helicopters production for Defence services is done in Karnataka and it contributes to 65 per cent of the country’s aerospace related exports. We are home to more than 2000 Small & micro enterprises along with 70 per cent of India’s supplier base which execute subcontracting work for the Defence PSUs,” he said.
The government of Karnataka has recently also requested the central government to include chip design under a production linked incentive scheme (PLI). C N Ashwath Narayan, IT&BT and S&T Minister, Karnataka, while speaking about the upcoming Bengaluru Tech Summit- 2021 (BTS) noted that the centre has responded well to the request made by the government of Karnataka.
