Manufacturing

Aerospace & Defence

Defence corridors in Uttar Pradesh and Tamil Nadu, FDI up to 74% via automatic route, and a fast-growing private defence-manufacturing ecosystem.

Highlights

Two Defence Industrial Corridors: Uttar Pradesh (Aligarh, Agra, Jhansi, Kanpur, Chitrakoot, Lucknow) and Tamil Nadu (Chennai, Coimbatore, Hosur, Salem, Tiruchirappalli).
FDI up to 74% under the automatic route; beyond 74% via government approval where the investment is likely to result in access to modern technology.
Defence Acquisition Procedure (DAP) prioritises domestic sourcing (Buy Indian-IDDM category).
Drones notified as a PLI sector — incentive ~20% on incremental sales.
iDEX (Innovations for Defence Excellence) — startup-grant programme run by DDP / MoD.

iDEX (Innovations for Defence Excellence)
Defence-startup grants up to ₹1.5 crore for innovation challenges.
Open
Defence Industrial Corridors
Anchor investment + infrastructure across two state corridors.
Open

Want to suggest a correction? See our methodology or tell us.