At a Cabinet meeting chaired by Chief Minister Yogi Adityanath in Prayagraj on Wednesday, the Uttar Pradesh government approved 10 significant proposals to advance the state's development. Among the highlights was the introduction of the Aerospace and Defence Unit and Employment Promotion Policy 2024, an initiative designed to establish Uttar Pradesh as an aerospace and defence industry leader.

This ambitious policy targets investments worth ₹50,000 crore, potentially creating direct employment opportunities for 1 lakh youth across the state. The meeting was held at the Triveni Complex in Prayagraj.

The Uttar Pradesh Aerospace and Defence Unit and Employment Promotion Policy 2024 seeks to transform the state into a premier aerospace and defence hub. It focuses on maintaining indigenous capabilities, fostering innovation and encouraging global partnerships to strengthen national security while driving economic growth.

A core objective of the policy is to develop a modern, high-tech, and efficient aerospace and defence manufacturing ecosystem within the Uttar Pradesh Defence Industrial Corridor (UPDIC). The policy also aims to attract startups and significant investments to establish advanced facilities, driving innovation and technological progress in the sector.

The Uttar Pradesh government plans to establish common facility centres focused on aerospace and defence (A&D) within the UP Defence Industrial Corridor (UPDIC). These centres aim to enhance the skills and capabilities of startups and micro, small, and medium enterprises (MSMEs). The policy also seeks to attract major A&D manufacturing projects and Defence Public Sector Undertakings (DPSUs) while fostering research and innovation to solidify Uttar Pradesh's role in India's defence and aerospace sectors.

Chief Minister Yogi Adityanath is committed to advancing companies that align with India’s self-reliance goals in the A&D sector. The policy encourages the establishment of artificial intelligence and software development centres dedicated to aerospace and defence. It targets investments of ₹50,000 crore over the next five years, promising to create 1 lakh job opportunities for the state’s youth.

The policy offers a range of incentives, including front-end subsidies for A&D units, discounts on land costs, exemptions from stamp duty and capital subsidies. Additional benefits include waivers on transportation charges, with special provisions encouraging women entrepreneurs to participate in the sector.

At the national level, the Ministry of Defence has set ambitious goals to double A&D production to $25 billion and increase exports to $5 billion by 2025-26. By 2047, the sector is expected to contribute 25% to India’s GDP. To achieve these objectives, two defence industrial corridors have been established, one in Uttar Pradesh and the other in Tamil Nadu, positioning Uttar Pradesh as a key contributor to this vision of transformation.

In addition to the A&D policy, the Yogi Cabinet has approved a new Foreign Direct Investment (FDI) policy to encourage foreign industries to set up operations in Uttar Pradesh, spurring industrial and economic growth. Under the policy, the state government will provide foreign investors with subsidies of up to 80% on land costs. Furthermore, significant reforms have been introduced to the Uttar Pradesh Industrial Investment and Employment Promotion Policy to drive industrial development and create more employment opportunities.