“Uttar Pradesh’s new Aerospace and Defence Policy 2024 aims to transform the state into a global aerospace hub, attracting ₹50,000 crore in investments and creating 1 lakh jobs. With 177 MoUs signed and advanced manufacturing units operational, the UP Defence Industrial Corridor is boosting indigenous production and economic growth.”
Uttar Pradesh Emerges as India’s Aerospace and Defence Powerhouse
Uttar Pradesh is rapidly positioning itself as a cornerstone of India’s aerospace and defence sector with the approval of the Aerospace and Defence Unit and Employment Promotion Policy 2024. Unveiled in a cabinet meeting chaired by Chief Minister Yogi Adityanath in Prayagraj, the policy is designed to attract ₹50,000 crore in investments, with a target of generating direct employment for 1 lakh youth across the state. This ambitious initiative aligns with India’s broader vision of self-reliance under the ‘Aatmanirbhar Bharat’ campaign, aiming to make the state a global hub for aerospace and defence manufacturing.
The Uttar Pradesh Defence Industrial Corridor (UPDIC), a flagship project, has already made significant strides. As of August 2025, 177 Memorandums of Understanding (MoUs) have been signed, with 61 units allotted land and nine units commencing operations. An additional 15 units are slated to become functional by the end of FY 2026. These developments are fostering a robust ecosystem for high-tech manufacturing, particularly in the production of titanium and superalloy components, critical for both domestic and global defence needs.
A key player in this transformation is PTC Industries, which has committed ₹1,000 crore to establish four advanced manufacturing plants across 50 acres in the UPDIC. These facilities specialize in titanium and superalloy production, already supplying parts for BAE Systems’ M777 howitzers and attracting interest from global giants like Safran and Dassault. This investment underscores UP’s growing role as a preferred destination for aerospace manufacturing, leveraging its skilled workforce and strategic location.
The policy also emphasizes innovation, with plans for an Unmanned Aerial Vehicle (UAV) campus and an integrated testing facility near Kanpur. These facilities aim to support startups and Micro, Small, and Medium Enterprises (MSMEs) by providing state-of-the-art infrastructure for research and development. Additionally, the establishment of AI and software development centres is expected to enhance technological advancements in the sector, further strengthening UP’s position in the global supply chain.
The state’s existing infrastructure, including seven ordnance factories, four Hindustan Aeronautics Limited (HAL) units, and two small arms factories, provides a strong foundation for this growth. The new policy builds on this legacy by offering incentives to attract large-scale aerospace and defence projects, including those by Defence Public Sector Undertakings (DPSUs). The government’s focus on creating common facility centres within the UPDIC will also empower startups and MSMEs, enabling them to compete on a global scale.
India’s defence sector is witnessing unprecedented growth, with the Ministry of Defence setting a target of achieving ₹1.75 lakh crore in aerospace and defence manufacturing by 2025, including ₹35,000 crore in exports. UP’s proactive policies are expected to contribute significantly to this goal, with the state’s aerospace and defence sector projected to account for 25% of India’s GDP by 2047. The emphasis on indigenous production is also evident in the fifth Positive Indigenisation List, which includes 346 items worth ₹1,048 crore, aimed at reducing import dependency.
The policy’s focus on employment generation is a game-changer for UP’s youth. By fostering high-skill jobs in advanced manufacturing, AI, and UAV technology, the state is not only boosting its economy but also aligning with national priorities of self-reliance and innovation. As global aerospace giants like Rolls-Royce and Airbus expand their sourcing from India, UP’s strategic initiatives position it as a vital cog in the global aerospace and defence ecosystem.
Disclaimer: This article is based on recent news reports, official statements from the Uttar Pradesh government, and industry sources. Information has been compiled from credible platforms, including government websites and posts on X, but should be cross-verified for accuracy. The data reflects developments as of August 2025.