In order to spur industrial growth in Aerospace and Defence sector and to place emphasis on creation of end-to-end ecosystem for Aerospace and Defence sector development, Haryana state cabinet recently approved the Haryana Aerospace and Defence Production Policy, 2022. The Policy aims to attract investments of at least 1 billion USD, generate employment opportunities of around 25000 persons and will position the state as country’s leading Aerospace and Defence Manufacturing Hub.
Since India has the third largest armed forces and the third highest Defence expenditure in the world and has spent approximately 3 percent of its GDP in 2020. Therefore, this Policy is needed to indigenize the Aerospace and Defence Production in the state that will help in building a domestic eco-system for the aerospace and defence industry.
The Policy envisages harnessing Haryana’s inherent strength in auto components and automobile manufacturing sector that looks forward to a possible transition into Aerospace and Defence manufacturing across various aspects such as infrastructure augmentation, attractive fiscal incentives, human capital development, strengthening connectivity etc. to enhance Ease of Doing Business in the State.
Besides this, the Policy also envisages to leverage opportunities arising out of changes in the global economic order and aligning growth in the Aerospace and Defence Industry in the State with national initiatives such as the Atmanirbhar Bharat Mission.
This Policy will also address the need of creating one world-class MRO in Haryana. Growth in the aviation sector necessitates the development of adequate Maintenance, Repair and Overhaul (MRO) facilities for aircrafts operating in the country. The state government will facilitate and incentivize the proposals for the setting up of new MRO facilities at existing airports or at new locations in Haryana.
This Policy places a special emphasis on the development of the MSME sector and its business growth. It envisages bringing up a paradigm shift from being a regulator to a facilitator of MSMEs.
Fiscal Incentives offered under this Policy are Net SGST Reimbursement, Capital Subsidy, Employment, Stamp Duty Reimbursement: Generation Subsidy, Stamp Duty Reimbursement, Electricity Duty Exemption, Human Capital Development Support, Research & Development Assistance.