InvestorQ : Is it correct that Karnataka state is getting some big investments in the defence area?
Lavanya Subramanian made post

Is it correct that Karnataka state is getting some big investments in the defence area?

Anamika Sodhani answered.
1 year ago

Oh Yes, that is absolutely correct. In fact, a total of 34 defence and aerospace companies are expected to invest a total amount of up to Rs.2500 crore in various defence undertakings in the state of Karnataka. This investment is expected to be a boost for the aviation sector considering that the state already houses the best ecosystem for aviation in India.

It is expected that this proposed investment will create over 6400 direct jobs in the state. Of course, these are the direct jobs and we are not counting here the ancillary employment opportunities that it will provide in the form of support industries and services. If that is added up then the actual impact of the move could be much larger.

Among the big investors in the state are some familiar names and also some new names. One of the emerging defence companies, Abhyuday Bharat Defence, is expected to invest a sum of Rs.1000 crore in the aviation segment in Karnataka. In addition, Gopalan Aerospace will infuse Rs.438 crore while Alpha Design Technology and TESBL Aerospace Corp will also invest Rs.500 crore each. These will be the list of major investors in the state.

This move is also significant because it positions the state of Karnataka as a likely candidate for a centre for defence manufacturing exactly as it did to IT and BPO sectors. It must be remembered that Bengaluru is already a defence hub with several important manufacturing and research driven names like HAL, BEL, BEML, DRDO, ADE and ISRO. These organizations with the right manpower provide the right ecosystem.