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India’s  Karnataka state government intends to include drones in its new aerospace and defense policy, and the state government wants to encourage investment in early technology for wider use.

The draft directive also outlines plans for new investments or expansion of existing companies in Bengaluru’s aerospace and defense sector, people involved in the discussion.

All recent government actions offer incentives and concessions only for investments in areas other than Bengaluru. This change in attitude indicates that the government wants to include national technology capital in its incentives. That’s because it’s home to a vibrant ecosystem of defense and aerospace industries, with a 1,200-acre cluster popping up near Kempegowda International Airport.

The Industry Department, in consultation with other departments, has completed the draft and it has been approved by the Cabinet.

Karnataka accounts for 40 percent of India’s defense electronic systems and products, Industry Minister Murugesh R. Nilani said. “Our stimulus package will continue to boost the sector,” he told ET, adding that the state targets $6 billion in investments for him over the next five years.

The new policy recognizes the changing dynamics of the sector and will be in line with the Aatmanirbhar program and emerging global trends. After the government established Hindustan Aeronautics Ltd in the 1940s, Bengaluru established itself as India’s largest aerospace cluster excluding the IT/BPO sector and had ambitions to become an aerospace hub in Asia. I am here.

At the Aero He India exhibition in Bangalore last year, the state government signed 34 MOUs with aerospace and defense companies.

The government plans to establish Bengaluru, Belagavi, Mysuru, Tumakuru and Chamarajanagara as aerospace and defense centers in the next five years, Mr Nirani said.

Aequs operates in Belagavi Aerospace Cluster, India’s first special aerospace economic zone, operated by Aequs Infra.

Karnataka’s new policy comes as the Center is building industrial corridors for defense in Uttar Pradesh and Tamil Nadu. State policy will focus on his four main areas of final assembly, aerospace, and defense-related electronics. maintenance, repair, overhaul. and additive manufacturing.

The policy will provide huge land and financial stimulus packages to space, defense and aerospace manufacturers and their subsectors, the minister said.

For example, the Electronic Systems Design and Manufacture Directive (ESDM) provides capital subsidies of 25% for land and 20% for factories and machinery, apart from 1% Production Linked Incentive (PLI) and other SOPs. We provide money to investors. Including electricity tax exemption and electricity rate discount. Aerospace and defense policies will have similar SOPs, but the numbers may differ, officials involved in the discussion said.