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Elevating Innovation, Strengthening Defense

Empowering India's Aerospace and Defense Ecosystem

Semicon City (Semicon City) is positioned to become a powerhouse in India’s aerospace and defense manufacturing landscape. With India’s escalating defense budget and the “Make in India” initiative driving local defense production, Semicon City provides an unmatched environment for creating robust manufacturing clusters. From seamless logistics via port connectivity to world-class infrastructure for precision manufacturing, Semicon City offers everything needed to thrive in the aerospace and defense sectors.

Growth Drivers

  • Rising Defense Expenditure:
    India’s defense budget, one of the highest globally, fuels demand for indigenous production and advanced manufacturing capabilities.
  • Focus on “Make in India”:
    Government policies promoting indigenization and FDI inflows into defense manufacturing create a favorable business environment.
  • Growing Aerospace Market:
    India’s aviation market is projected to become the third-largest globally, driving demand for aircraft manufacturing and MRO services.
  • Global Export Opportunities:
    Semicon City’s proximity to Semicon City Port makes it an ideal hub for exporting defense and aerospace components to Europe, ASEAN, and GCC countries.

What Makes Semicon City Unique?

Integrated Aerospace and Defense Cluster:
Semicon City fosters collaboration among global OEMs, SMEs, and startups to create an integrated ecosystem for aerospace and defense manufacturing.

Port-Enabled Logistics:
Semicon City Port’s capabilities in handling heavy machinery and specialized equipment simplify transportation and exports.

Talent and Research Synergy:
Semicon City ensures nearby colleges offer specialized programs in aerospace and defense technologies, creating a skilled talent pool for investors.

Global Collaborations:
Semicon City facilitates partnerships with global aerospace giants and defense firms to accelerate technology transfer and innovation.

Government Initiatives Supporting Aerospace and Defense

  • Make in India for Defense:
    • 100% FDI in defense under the automatic route for up to 74%, with higher investments requiring government approval.
    • Focus on indigenization of defense production and reducing import dependency.
  • Defense Production Policy:
    • Targets $25 billion in defense manufacturing by 2025, including $5 billion in exports.
    • Financial incentives for defense manufacturing clusters.
  • Offset Policy:
    • Mandates foreign defense contractors to invest 30% of contract value in India’s defense sector, fostering local industry growth.
  • PLI Schemes for Manufacturing:
    • Provides financial support to companies investing in aerospace and defense manufacturing under the Production-Linked Incentive scheme.