Uttar Pradesh Defence Industrial Corridor Poised To Make India ‘Atmanirbhar’ In Defence Production

The Uttar Pradesh Defence Industrial Corridor (UPDIC) is witnessing significant progress, attracting major investments and demonstrating commitment to make India ‘Atmanirbhar’ (self-reliant) in the defence and aerospace sector.
Competitive and attractive incentives offered under the Defence and Aerospace Units and Employment Promotion Policy of Uttar Pradesh and creation of required infrastructure have resulted, so far, in attracting 114 investment intents with a proposed investment of ₹24,510.60 Crore and potential employment generation of 41,667.

Significantly, 34 investment projects worth ₹3585.85 crore are ready to be included in the upcoming ground breaking ceremony. These projects are spread across Aligarh, Jhansi, Kanpur and Lucknow nodes of the defence industrial corridor and would generate over 8,530 employment opportunities.
Among major companies which have proposed investment in defence industrial corridor include BrahMos Aerospace and Areolloy Technologies at Lucknow, Bharat Dynamics Ltd, Armoured Vehicles Nigam Ltd, Tata Technologies Ltd, Global Engineers Ltd and WB Electronics India Ltd at Jhansi, Adani Defence Systems & Technologies Ltd, Ananth Technologies and Genser Aerospace at Kanpur, Anchor Research Labs LLP and Amitec Electronics at Aligarh. These investors have either established their units or are in the process of implementing their projects.

It may be noted that establishment of Uttar Pradesh Defence Industrial Corridor was announced in February 2018 by the Hon’ble Prime Minister. The State government also moved fast in acquiring greenfield land parcels at Agra, Aligarh Chitrakoot, Jhansi, Kanpur, and Lucknow nodes, creating a total land bank of 1645 Ha in Phase-I.
The Government of Uttar Pradesh is investing in developing basic infrastructure across nodes, creating a conducive environment for investors. IIT Kanpur and IIT (BHU) Varanasi have been nominated as Centres of Excellence, conducting research and filling critical R&D gaps.

Ministry of Defence, Govt of India has launched the Defence Testing Infrastructure Scheme with an outlay of ₹400 crore for creating state of the art testing infrastructure in partnership with the private industries. A grant-in-aid of ₹117.06 Crore has been approved by Ministry of Defence, Govt of India for establishing three defence testing facilities in Kanpur and Lucknow.

UP Defence Industrial Corridor has collaborated with financial institutions to offer customized loans and cater to the specific needs of MSMEs and start-ups in the defence and aerospace sector.

The current surge in investment and investors aligns with the government’s indigenisation policy, emphasizing the manufacturing of 509 items on the positive list and 4,666 Line-Replaceable Units that will be compulsorily manufactured in India, translating into a total home-grown business of ₹1,75,000 crores.
UP Defence Industrial Corridor is transforming Uttar Pradesh into a major hub for defence and aerospace manufacturing, contributing to India’s self-reliance and economic growth. The Yogi government’s commitment to creating a supportive ecosystem and fostering innovation is attracting leading players and propelling the corridor’s success.

As India proudly transitions from a major import-oriented defence sector to a formidable exporter, Uttar Pradesh’s Defence Industrial Corridor stands as a beacon of progress, innovation, and self-reliance. The state is on the precipice of transforming into a major contributor to India’s trillion-dollar economy, solidifying its position as a key growth driver for the nation.