India's Aviation and Defence Landscape: Growth Opportunities in Telangana

Investments Why Invest in Telengana

Posted by pallavi on 2024-10-01 06:04:44 |

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India and Telangana: Key Developments in Aviation and Defence

Aviation: India has emerged as the third-largest and fastest-growing aviation market, measured by domestic tickets sold. The country boasts 91 international carriers, including five Indian airlines and 86 foreign airlines, ensuring robust connectivity with major global destinations. In 2018, the growth in domestic airline demand, measured in revenue passenger kilometres (RPK), was 18.6%, three times higher than the global RPK growth of 6.5%.

Defence: India has outlined a plan to invest $130 billion in military modernization over the next five years, with a primary focus on achieving self-reliance in defence production. The Government of India has opened the defence sector to private participation, aiming to boost indigenous manufacturing. This move also facilitates foreign original equipment manufacturers to form strategic partnerships with Indian companies. In the fiscal year 2018-19, the annual turnover generated by the private sector in the defence and aerospace sectors was $2.4 billion.

Telangana's Key Value Propositions:

- Proximity to Urban Living: Multiple aerospace parks located within or near urban centers.

- Cost-Effective Infrastructure: An unmatched value proposition with superior infrastructure at low costs.

- Skilled Workforce: Abundant availability of skilled manpower.

- Strong Defence Cluster: A well-established aerospace and defence supply chain.

- Innovation and Research: A robust innovation ecosystem and research-industry collaboration, with Hyderabad being home to numerous defence aerospace research laboratories such as DRDO, DRDL, RCI, BDL, MDN, and others. The city also hosts a mature defence manufacturing ecosystem comprising over a dozen major DRDO labs and defence public sector units (PSUs).

- Attractive Policies: An appealing state industrial policy accompanied by a package of incentives.

- Training Institutions: A rich array of institutions dedicated to training personnel required for the sector.

- IT/ITeS Talent Pool: Home to one of the best talent pools in the IT and IT-enabled services sectors, fostering potential synergies.

- Private Sector Strength: A strong private industry presence with over 25 large companies and more than 1,000 MSMEs in the aerospace and defence sectors.

In just five years since its formation, Telangana has attracted significant investments from US original equipment manufacturers such as Lockheed Martin, Boeing, GE Aviation, Pratt and Whitney, Honeywell, and Collins Aerospace, marking unprecedented growth in the aerospace and defence ecosystem. Additionally, there are over 1,000 MSME units operating in the precision engineering sector in Telangana.

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