Aerospace & Defence

• The state ranks 2nd by population and 3rd by geographical area.
• As per 2011 census, Maharashtra had a population of 112 crs. having a literacy rate of 82.3% and a sex ratio of 929 (Females over per thousand males).
• It is one of the highly urbanized states of India having density of population as 365 (per sq. km).
• Maharashtra is India’s largest state economy contributing ~15% to India’s GDP.
• State is an Industrial Power House, contributing ~15.5% of India’s manufacturing, and ~15.7% of exports from the country.
• Maharashtra’s logistics & infrastructure profile includes:
  • 720 kms long coastline covered by 2 major (JNPT & MBPT) and 48 non-major ports
  • National Highways (18,366 kms) and state highways (30,465 kms); ~99.2% of villages are connected in the state
  • Railway length of ~11,631 kms capturing 9% of country’s railway network
  • 4 international and 8 domestic airports are operational along with 2 upcoming airports at Navi Mumbai and Pune (Purandar)
  • State ranks 2nd in terms of electricity generation installed capacity
  • 2.23 MMTPA of warehousing capacity along with 1.03 MMTPA of cold storage capacity
• The state boasts 292 industrial areas, 99 co-operative industrial estates, along with dedicated sectoral parks spread over 2.5 lakh acres land. In addition, state also has dedicated wine parks, silver parks, 9 SEZs, floriculture parks, food parks, textile parks and 27 IT parks.

India Level:

• GDP – The aerospace and defence sector contributes to around 3.3% of the GDP spend of India in 2023-24.
• In the Interim Union Budget 2024-25, allocation of Rs. 6.22 lakh crores representing a 13% share.
• Ministry of Defence has set a target of achieving of Rs. 1.75 lakh crores in A&D manufacturing by 2025, including Rs. 35,000 crores of exports.
• Exports – USD 2.63 billion of defence exports, which is all time high in 2023-24, representing 0.2% of global arms export.
• Rankings – India is 1st biggest arms importer in the world, 3rd largest aviation market on the world.

Maharashtra Level:

• GSDP – The sector contributes 1.7% Maharashtra GSDP
• Output – The state contributes 30% in India output of weapons and ammunitions. The state contributes 21% share in India’s output of aircrafts, ships, boats, etc.
• The aerospace and defence manufacturing are based out of the following regions in Maharashtra:
  • Nashik – Presence of PSU – Hindustan Aeronautics Limited and private player – Greaves Cotton
  • Nagpur – Presence of Boeing, Tata Advanced Systems Limited, Solar Industries & Brahmos, also Dhirubhai Ambani Aerospace park at MIHAN, defence cell at Vidharbha and Airforce Maintenance Command
  • Amravati – Presence of private player Bharat Dynamics Ltd.
  • Ahilyanagar – VRDE and DRDO
  • Pune – Presence of DRDO, Defence Institute of Advanced Technology, NDA along with private players like L&T, Tata Motors, Bharat Forge, Mahindra. Other organisations include Army Southern Command, Defence Equipment Manufacturers Association.
  • Mumbai – Presence of ports like Indian Navy Dockyard and Mazgaon Dockyard.
• The state has a dedicated Aerospace and Defence Manufacturing Policy, 2018 aimed to establish Maharashtra as a preferred investment destination for the aerospace and defence manufacturing industry.

Vision

To establish Maharashtra as the preferred investment destination for domestic defence and aerospace manufacturing, promote indigenous and modernized technological capabilities, develop world class skilled man power, and support MSMEs to be globally competitive in the Aerospace and Defence sector.

Mission

• To promote Maharashtra as the Aerospace and Defence manufacturing hub.
• To develop Maharashtra as the defence R&D and innovation centre.
• To develop Maharashtra as an export hub for Aerospace & Defence products.
• To develop industry ready skilled manpower for the Aerospace & Defence sector.
• To promote Maharashtra as globally recognized MRO hub.

Objectives

• To attract investments worth USD 2 billion in the next 5 years in the A&D sector
• To develop world class skilled manpower in collaboration with the industry stakeholders.
• To create 1 lakh employment opportunities over the next 5 years
• To promote the building of indigenous advanced A&D technology
• To promote defence MSMEs to compete at global level.

• Anchor Units – Anchor units are vital for cluster ecosystems. The State will offer fiscal and non-fiscal incentives to support these units.
• Nagpur MRO Hub – Develop Nagpur MRO into a global hub leveraging its location and existing facilities. Incentives like SGST rebates on service parts will attract low-cost carriers.
• Indigenous Technology & R&D Promotion – Support R&D institutions approved by the State. Fiscal/ non-fiscal incentives for Aerospace and Defence R&D Centers. Include testing facilities, incubation and innovation centers.
• Human Resource Development – Incentivise training to develop skilled manpower. Upgrade vocational training and engineering institutions.
• MSME Support – MSMEs to serve as suppliers to anchor units. Incentives for market development, certifications and patents.
• Public – Private Collaboration – Special support for units collaborating with public sector defence enterprises. Policy benefits extended to joint ventures.
• Defence Hubs – Establish hubs in Pune, Nagpur, Ahilyanagar, Nashik and Aurangabad.

The Aerospace and Defence Manufacturing Policy provides several incentives aimed at encouraging investments in the state.

• Eligible units under the PSI scheme will receive benefits, including higher incentives for MSMEs and Large Enterprises.
• Mega projects (Rs. 250 crore FCI or 500 jobs in A/B areas; Rs. 100 crore FCI or 250 jobs elsewhere) will receive incentives.
• Investment in test ranges, storage facilities, And R&D is part of admissible costs, with limits of 10-20% of project cost or Rs. 50-100 crore.
• Anchor units
  • Eligibility: Mega/ Ultra Mega status and USD 100 million order book
  • Up to 10 anchor units; incentives include discounted land rates and waivers on service charges.
• Industrial Townships
  • Develop integrated townships promoting walk-to-work for defence and aerospace parks and large units.
• Common Facilities
  • MIDC to assist in developing testing, training, and research labs, with 15% financial support capped at Rs. 15 crores.
• MSME Equity Fund
  • Rs. 1000 crore corpus for capital and working capital support
• Skill Development
  • Upgrade technical institutes and promote private partnerships for training.
• Marketing Assistance
  • Reimbursements for participants in international trade fairs, with limites of Rs. 3-10 lakhs.
  • Support for national/ internationals seminars in Maharashtra.
• Earmarked Land
  • Allocate 200-acre parcels for specialised aerospace and defence parks.