Rajasthan pushes for indigenisation in defence manufacturing with a new aerospace policy. State leverages strategic location & RIP-2024 scheme to attract private investment and boost production.
Jaipur, Rajasthan – In a significant move to bolster India’s defence indigenisation efforts the Rajasthan government is aggressively promoting the state as a premier destination for defence and aerospace manufacturing. The push was highlighted during a recent high-level interaction between the Department of Defence Production and local stakeholders where the state’s proposed defence aerospace policy took center stage.
The meeting underscored Rajasthan’s unique advantages—its strategic location and ample land availability—as key factors attracting defence investments and fostering the development of a robust manufacturing ecosystem within the country.
Private Sector Growth and Government Support
The critical role of the private sector was a major focus. Officials revealed that private companies now hold a 22.5% share in India’s defence production landscape. This growth is evidenced by a staggering increase in defence production licences issued to the private sector which have jumped from 246 to 742 over the last decade.
Sushil Satpute, Deputy Director General, Department of Defence Production provided compelling figures on the industry’s scale: “India’s defence industry comprising both private and public enterprises is currently producing goods worth ₹1.50 lakh crore, with ₹23,600 crore worth of exports to allied countries.”
The Union government’s intent to support the sector was also clarified, focusing on two key areas:
- Assistance for MSMEs: Providing targeted support to micro, small, and medium enterprises.
- Technology Access: Granting private companies access to cutting-edge defence technologies developed by the Defence Research and Development Organisation (DRDO).
Rajasthan’s Investment Appeal: The RIP-2024 Scheme
Officials from the Rajasthan State Industrial Development and Investment Corporation (RIICO) detailed the incentives under the Rajasthan Investment Promotion Scheme (RIP)-2024, designed to make the state an irresistible destination for defence manufacturing units. The scheme offers a combination of financial and infrastructural benefits to attract large-scale investments.
Addressing Industry Concerns and Future Steps
Entrepreneurs and industry representatives present at the meeting raised practical concerns, including:
- Difficulties in acquiring necessary licences and approvals.
- A request for the Defence Ministry to organize an exhibition in Rajasthan to showcase essential defence equipment and requirements.
- The need for local testing facilities for defence products, a move they argued would attract new ventures and significantly boost investment.
The Department of Defence Production is actively working to create a more conducive environment for private players, aiming to attract domestic capital into core manufacturing activities in these strategic sectors. Establishing a robust, self-reliant production infrastructure in Rajasthan is considered a significant national objective.
The meeting was attended by senior officials including Alok Gupta, Principal Secretary (Industries & Commerce), Commissioner of Industries Rohit Gupta, and RIICO Managing Director Shivangi Swarnkar, signaling the state’s high-level commitment to this initiative.
This concerted effort positions Rajasthan not just as a participant, but as a future leader in India’s quest for Aatmanirbharta (self-reliance) in defence manufacturing.
