Karnataka Cabinet approves aerospace Policy, expecting bout ₹60,000 crore investment in five years
The Karnataka Cabinet has approved new policies for the aerospace and textile sectors, projecting significant investments over the next five years. Additionally, the government is launching initiatives for drone testing, AI development, and an international arbitration center.
Why it matters
These policy decisions signal a major push for industrial growth and technological infrastructure in the Indian state of Karnataka.
The State Cabinet on Wednesday approved the Karnataka Aerospace Policy 2026-2031, focusing on aerospace, defence, aviation and space research and development expecting about ₹60,000 crore investment over the next five years.
To encourage private sector invstements and to provide capital subsidy, the government has classified focus areas and non-focus areas with zones. The capital subsidy has been fixed at 30% in zone 1 and 25% in zone 3. While the previous capital subsidy was between 1.75% and 2.25% in the previous policy in the non focus areas, it has been hiked to 25% now.
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