In a Cabinet meeting chaired by Chief Minister Yogi Adityanath in Prayagraj of Uttar Pradesh on Wednesday, the state government approved 10 important proposals aimed at accelerating the development of the state. Among these, an important Aerospace and Defense Unit and the Employment Promotion Policy 2024 were launched to position Uttar Pradesh as a leader in this sector.
The policy aims to attract Rs 50,000 crore in investment, which has the potential to generate direct employment for 1 lakh youth across the state. The Cabinet meeting was held at Triveni Complex in Prayagraj.
The Uttar Pradesh Aerospace and Defense Unit and Employment Promotion Policy 2024 aims to position Uttar Pradesh as a leading aerospace and defense hub, accelerate indigenous skills, foster innovation, and encourage global collaboration to improve national security and economic prosperity.
This policy aims to strengthen the aerospace and defense (A&D) sector in Uttar Pradesh by creating a robust, hi-tech, and efficient A&D manufacturing system within the UP Defense Industrial Corridor (UPDIC). It also aims to attract start-ups and investment to develop quality institutions in the sector.
Standard A&D based institutions are planned to develop skills and capacity of startups and MSMEs in UPDIC. The policy also aims to attract large-scale manufacturing projects for A&D and DPSUs, while promoting research and innovation, ensuring that Uttar Pradesh makes a significant contribution to India’s national security and aerospace.
Chief Minister Yogi Adityanath aims to promote the growth of companies that align with India’s vision of self-reliance in the Aerospace and Defense (A&D) sector. The new policy encourages the establishment of artificial intelligence centers and software systems in A&D. It targets an investment of Rs 50,000 crore in the next five years and promises employment opportunities for 1 lakh youth.
The policy provides key incentives, including upfront financing for A&D units, land subsidy, stamp duty exemption, and capital subsidy. In addition, the Yogi government will provide benefits such as exemption from travel expenses, and special provisions for women entrepreneurs to encourage their participation in this sector.
The Ministry of Defense has set a target of doubling the country’s A&D production to $25 billion and exports to $5 billion by 2025-26. By 2047, the A&D manufacturing sector is expected to contribute 25% to the nation’s GDP. To achieve these goals, two defense industrial corridors have been established in India—in Uttar Pradesh and Tamil Nadu—positioning UP as a key player in this transformation vision.
The Yogi Cabinet also approved a new FDI policy to promote foreign investment in Uttar Pradesh to promote industrial and economic growth. Under this policy, the state government will provide subsidies of up to 80% of land to foreign firms that invest in the state. Additionally, major changes have been introduced in the Industrial Investment and Employment Promotion Policy to promote industrial development.