The Rajasthan government has announced a comprehensive Rajasthan Aerospace and Defence Policy, positioning the state as a key hub for aerospace and defence manufacturing and services, with a focus on boosting investment, accelerating economic growth and creating new employment opportunities.
Under the leadership of Chief Minister Bhajanlal Sharma, the state government said it is pursuing a multi-dimensional development strategy to achieve the vision of a Viksit Rajasthan. Significant policy decisions have already been taken across sectors such as agriculture, energy, drinking water, education, infrastructure, healthcare and industry. The new aerospace and defence policy is aimed at strengthening self-reliance in the sector while enhancing Rajasthan’s contribution to India’s growing aerospace and defence manufacturing ecosystem.
The policy seeks to promote defence and space technologies in the state and attract large-scale investments, while also nurturing MSMEs, startups and an innovation-driven ecosystem. It is expected to provide a major push to economic development and job creation. The policy encourages the establishment of manufacturing units, equipment and component manufacturers, suppliers, precision engineering units, and Maintenance, Repair and Overhaul (MRO) facilities in the aerospace and defence sector.
Project Classification Defined
Under the policy, manufacturing and service sector projects will be classified into three categories based on investment size.
For manufacturing projects, investments ranging from ₹50 crore to ₹300 crore will be categorised as Large, ₹300 crore to ₹1,000 crore as Mega, and investments exceeding ₹1,000 crore as Ultra Mega projects.
In the service sector, projects with investments between ₹25 crore and ₹100 crore will fall under the Large category, ₹100 crore to ₹250 crore as Mega, and those above ₹250 crore as Ultra Mega.
Incentives for Manufacturing and Services
Eligible aerospace and defence manufacturing and service enterprises set up in A&D Parks will receive investment support in the form of 75% reimbursement of state taxes for seven years as an asset creation incentive.
