Rajasthan Aerospace and Defence Policy 2026 : the Rajasthan Cabinet, chaired by Chief Minister Bhajan Lal Sharma, approved the landmark Rajasthan Aerospace and Defence Policy 2026. This policy is a central pillar of the state’s multi-dimensional strategy to achieve the vision of a “Viksit Rajasthan” (Developed Rajasthan) by positioning the state as a premier global hub for high-tech manufacturing and Maintenance, Repair, and Overhaul (MRO) services.
The policy follows on the heels of the Rajasthan Semiconductor Policy—2025, creating a powerful dual-incentive framework for advanced technology sectors.
Rajasthan Aerospace and Defence Policy 2026 : Strategic Project Categorization
To streamline incentives, the government has classified projects based on their Fixed Capital Investment (FCI):
Rajasthan Aerospace and Defence Policy 2026 : Manufacturing Sector
| Category | Investment Range |
| Large Projects | ₹50 Crore – ₹300 Crore |
| Mega Projects | ₹300 Crore – ₹1,000 Crore |
| Ultra-Mega Projects | Above ₹1,000 Crore |
Service Sector (including MRO)
| Category | Investment Range |
| Large Projects | ₹25 Crore – ₹100 Crore |
| Mega Projects | ₹100 Crore – ₹250 Crore |
| Ultra-Mega Projects | Above ₹250 Crore |
Key Fiscal & Operational Incentives
The policy offers a “cafeteria approach” where investors can choose the incentive model that best suits their financial structure:
- Asset Creation Incentive: Reimbursement of 75% of State Taxes (SGST) for 7 years for units located in dedicated Aerospace and Defence Parks.
- Capital Grant Options: * Manufacturing: 20% to 28% capital grant.
- Services: 14% to 20% capital grant.
- Turnover-Linked Incentive: An alternative option of 1.2% to 2% of turnover for 10 years.
- Operational Exemptions: * 100% Electricity Duty Exemption for 7 years.
- Exemptions from banking, wheeling, and transmission charges for power.
- Full reimbursement of Mandi (market) fees and up to 75% exemption on stamp duty and land conversion fees.
RIICO & Infrastructure Support
The Rajasthan State Industrial Development and Investment Corporation (RIICO) will act as the primary enabler for land and infrastructure:
- Flexible Land Payments: Mega and Ultra-Mega units will benefit from deferred or flexible payment models for industrial plots.
- Lease Rental Subsidies: Significant subsidies for office spaces in designated parks to support startups and design-led MSMEs.
- Captive Power: Investment in captive power plants (including renewable energy) will be counted toward the “Eligible Capital Investment” for subsidies.
Strategic Boosters for Growth
To drive broader economic goals, the policy includes specific “Boosters”:
- Sunrise Booster: Additional incentives for the first few Mega and Ultra-Mega units that “kickstart” the ecosystem.
- Anchor & Thrust Boosters: Higher incentives for large companies that bring in a cluster of ancillary suppliers.
- Employment Booster: Additional financial support linked to the number of local high-skilled jobs created.
“Aerospace and defence are no longer just national priorities—they are the next phase of Rajasthan’s industrial growth. We are creating an ecosystem that moves beyond assembly to precision engineering and innovation.” — Rajyavardhan Singh Rathore, Industries and Commerce Minister.
