The Karnataka Cabinet approved the Karnataka Aerospace Policy 2026-2031 on 9 September 2026. The policy covers aerospace, defence, aviation, and space research and development, and it seeks to expand the sector beyond Bengaluru. The state government set an investment target of ₹60,000 crore over five years.
Karnataka Aerospace Policy 2026-2031
The aerospace sector in India includes aircraft manufacturing, defence production, avionics, maintenance, repair, and overhaul activities. Karnataka already has a major aerospace base in Bengaluru, which hosts public sector and private sector units linked to aviation and defence production. The new policy is linked to industrial expansion in other districts of the state.
Industrial and Manufacturing Provisions
The policy refers to large manufacturing projects that may receive state incentives. Tata Advanced Systems has a plan to build 40 aircraft, and Hindustan Aeronautics Limited has a production plan for 97 Light Combat Aircraft. The policy also includes zone-wise capital subsidies, with different media accounts citing rates between 25% and 35%.
Related Cabinet Decisions
On the same date, the Cabinet cleared India’s first drone-testing facility in Chikkaballapur at an estimated cost of ₹42.83 crore. The Cabinet also approved the Shramika Nivas housing scheme for 10,000 houses near industrial workplaces, with land support from the Karnataka Industrial Areas Development Board. A ₹35-crore Artificial Intelligence hub was approved at the Indian Institute of Information Technology-Bengaluru as a step towards a planned AI University. The Cabinet also approved the Startup Policy 2026-2030, which allows eligible startups to present technological solutions valued up to ₹25 lakh directly to state departments.
Important Facts for Exams
- Karnataka is one of India’s major aerospace and defence manufacturing states, with Bengaluru as its principal industrial centre.
- Hindustan Aeronautics Limited is a public sector undertaking under the Ministry of Defence.
- The Light Combat Aircraft is an indigenous fighter aircraft programme developed in India.
- Drone-testing facilities are used for certification, trials, and controlled evaluation of unmanned aerial systems.
State Industrial Policy Context
Industrial policies in Indian states usually provide capital subsidies, land support, tax-related incentives, and sector-specific facilitation. Aerospace policies often cover manufacturing clusters, testing infrastructure, skill development, and supply-chain development. Karnataka’s policy framework now includes aerospace, drone testing, housing for workers, artificial intelligence, and startup support in one Cabinet meeting.
