Aerospace & Defence

Initiatives

Union Government

The Union Government of India has implemented several significant initiatives to promote and strengthen the Aerospace and Defence sector in the country. These initiatives are aimed at enhancing self-reliance in defence production, encouraging research and development and fostering collaboration between domestic and international entities.

Here are some key Union Government initiatives related to the Aerospace and Defence sector:

Make in India

The “Make in India” initiative includes a specific focus on defence production. It encourages domestic manufacturing, promotes private sector participation and aims to reduce India’s dependence on defence imports.

Defence Procurement Policy (DPP)

The Union Government periodically revises the DPP to streamline and simplify the defence procurement process, making it more transparent and efficient for both domestic and international defence companies.

Defence Production and Export Promotion Policy (DPEPP)

This policy aims to promote defence exports, incentivize domestic defence production and facilitate collaboration between public and private sectors. It sets ambitious targets for defence production and export.

Strategic Partnership (SP) Model

The SP model identifies specific segments of the defence industry (aircraft, submarines, helicopters, armored vehicles and ammunition) where private sector companies can collaborate with foreign Original Equipment Manufacturers (OEMs) for technology transfer and indigenous production.

Investment Promotion

The government has raised the cap on foreign direct investment (FDI) in the defence sector, allowing for greater foreign participation and investment in Indian defence companies.

Defence Industrial Corridors

India has established two defence industrial corridors—one in Uttar Pradesh (Bundelkhand Defence Industrial Corridor) and one in Tamil Nadu (Southern Defence Corridor). These corridors aim to attract defence-manufacturing investments, create jobs and promote defence research and development.

Technology Development Fund (TDF):

TDF supports research and development efforts in the private sector by providing financial assistance for projects related to critical defence technologies.

Defence Research and Development Organisation (DRDO) Support

The Union Government continues to fund and support DRDO in its mission to develop cutting-edge defence technologies, including missiles, aircraft and electronic warfare systems.

Export Promotion

The government provides various incentives and support to promote defence exports, including participation in international defence exhibitions and the creation of a dedicated defence export promotion agency (DEPA).

Defence Procurement Procedure (DPP) Offset Policy

The offset policy requires foreign defence suppliers to invest a certain percentage of the contract value in India’s defence manufacturing and technology sector, leading to technology transfer and local production.

Indian Defence Technology Startups

Initiatives like the Innovations for Defence Excellence (iDEX) programme aim to foster innovation by collaborating with Startups and small and medium enterprises (SMEs) in developing defence technologies.

Skill Development

The government has launched skill development programmes to train the workforce in advanced Aerospace and Defence technologies, ensuring a skilled talent pool for the sector.

These initiatives of the Union Government collectively strive to boost indigenous defence production, enhance defence capabilities, encourage foreign investments and promote India as a major player in the global Aerospace and Defence industry. These measures align with India’s goal of achieving self-reliance and strengthening its national security infrastructure.

State Government

The Tamil Nadu Government has been actively promoting the Aerospace and Defence sector through various initiatives aimed at attracting investments, fostering innovation and creating a conducive business environment.

Here are some key government initiatives related to the Aerospace and Defence sector in Tamil Nadu:

Southern Defence Corridor

Tamil Nadu is a vital component of the Southern Defence Corridor, a government-led initiative that aims to promote defence manufacturing and related industries in the southern region of India. This corridor encompasses Tamil Nadu, Andhra Pradesh and Telangana, with focus on creating a defence-manufacturing ecosystem, attracting investments and generating employment opportunities.

Aerospace and Defence Policy

The Tamil Nadu Aerospace and Defence Industrial Policy, introduced by the State Government, provides a comprehensive framework for promoting the Aerospace and Defence sector. It offers incentives, concessions and support measures to encourage investment in research and development, manufacturing and export of Aerospace and Defence products.

Aerospace Parks and SEZs

Tamil Nadu has established dedicated aerospace parks and special economic zones (SEZs) to facilitate the growth of the Aerospace and Defence industry. These zones offer excellent infrastructure, tax benefits and a streamlined approval process for companies operating in them.

Skill Development Initiatives

The State Government has launched several skill development programmes in collaboration with educational institutions and industry partners. These initiatives aim to train and upskill the workforce in Aerospace and Defence-related technologies, ensuring a steady supply of skilled professionals.

Investor-Friendly Policies

Tamil Nadu offers a range of incentives, including tax concessions and subsidies, to attract Aerospace and Defence companies. These policies create a favorable business environment and reduce the cost of setting up and operating an industry in the State.

Ease of Doing Business

The State Government has implemented measures to simplify and expedite various administrative processes, such as land acquisition, permits and licences, making it easier for companies to do business in Tamil Nadu.

Research and Development Collaboration

The government encourages collaboration among defence companies, research institutions and educational establishments. It provides support for joint research and development projects, fostering innovation and technology transfer.

Infrastructure Development

Tamil Nadu has made significant investments in infrastructure development, including transportation, connectivity and utilities, to support the Aerospace and Defence industry’s growth.

International Collaboration

The State Government actively seeks international collaborations and partnerships in the Aerospace and Defence sector to bring in global expertise and investments.

Export Promotion

Initiatives to promote the export of Aerospace and Defence products and technologies are in place. These include support for participation in international trade shows and exhibitions.

These government initiatives collectively create an ecosystem that encourages Aerospace and Defence companies to invest, innovate and operate in Tamil Nadu. By providing incentives, infrastructure and a skilled workforce, the government aims to position the State as a prominent player in India’s Aerospace and Defence industry.

Resources

The Aerospace and Defence industry relies on a wide range of resources to operate effectively and stay at the forefront of technology and innovation. These resources encompass everything, from personnel and funding to materials, research facilities and regulatory frameworks.

Here is a breakdown of some key resources available to the Aerospace and Defence sector:

Talent and Workforce

• Skilled engineers, scientists, researchers and technicians are essential resources for designing, manufacturing and maintaining Aerospace and Defence systems.
• Universities and vocational institutions provide education and training tailored to Aerospace and Defence needs.

Funding and Investment

• Tamil Nadu saw ₹4,900 crore investment in the Aerospace and Defence sector in the last two years and the committed investment is ₹15,000 crore.
• Government funding, grants and contracts play a crucial role in financing research, development and procurement in the Aerospace and Defence industry.
• Private sector investment, venture capital and public-private partnerships also contribute to financial resources.

Materials and Manufacturing

• Advanced materials, such as composites, alloys and specialized coatings, are fundamental to building lightweight yet robust Aerospace and Defence systems.
• Manufacturing facilities, including aerospace-grade production plants and 3D printing capabilities, are essential resources.

Research and Development Facilities

• Aerospace and Defence companies often maintain their own research and development centers for innovation and testing.
• Government research agencies and laboratories provide access to cutting-edge facilities and expertise.

Supply Chain

• A robust supply chain network ensures the timely delivery of components, parts and materials.
• Suppliers and subcontractors are vital resources for meeting production demands.

Regulatory Frameworks

• Government agencies, such as the Federal Aviation Administration (FAA) in the United States, establish and enforce safety and certification standards.
• International agreements and organisations, like ICAO (International Civil Aviation Organisation), help to standardise regulations globally.

Testing and Certification

• Facilities for testing Aerospace and Defence systems are essential for ensuring safety and reliability.
• Certification authorities, like the FAA or EASA (European Union Aviation Safety Agency), provide the necessary approvals.

Information Technology and Data

• High-performance computing and data analytics are critical for simulations, modeling and data-driven decision-making.
• Cybersecurity measures protect sensitive data and intellectual property.

International Collaboration

• Collaboration with other countries and international organisations facilitates joint research, development and production efforts.
• Shared resources and expertise can lead to cost savings and innovation.

Infrastructure

• Airports, runways and air traffic control systems are essential for aerospace operations.
• Military bases and facilities are required for defense operations and testing.

Laws and Treaties

• International agreements and arms control treaties govern the export and use of defence-related technologies.
• Legal frameworks help in regulating arms sales and exports.

Training and Education

• Training centres and educational institutions provide ongoing education and skill development for industry professionals.
• Simulators and training aircraft are used for pilot and crew training.

Testing Ranges and Facilities

• Aerospace and Defence companies often use specialised testing ranges and facilities for flight testing and experiments.

Maintenance and Support

• Maintenance, repair, and overhaul (MRO) facilities ensure the long-term operational readiness of Aerospace and Defence systems.
• Support services include logistics, spare parts and technical assistance.

These resources collectively support the Aerospace and Defence industry’s ability to design, produce and maintain cutting-edge technologies and systems for both civil and military purposes. Collaboration among governments, private companies and research institutions is often key to advancing the sector’s capabilities.