The Gujarat government is poised to announce a fresh Aerospace and Defence (A&D) Policy, with sources indicating the launch will occur during the upcoming Vibrant Gujarat Regional Conference (VGRC) in Rajkot. This new policy framework comes as the state's pioneering 2016 A&D Policy reached its conclusion on December 31, 2025.
Building on a Foundation of Growth
The lapsed 2016 policy was instrumental in positioning Gujarat as a key hub for defence and aerospace manufacturing and research. It provided a range of financial incentives, subsidies, and infrastructure support to attract both domestic and international companies. According to an office-bearer of a leading industry association, the policy successfully drew significant investments and helped establish a foundational base for the sector's future expansion in the state.
"Gujarat possesses a robust base of engineering and casting industries, predominantly comprising MSMEs," the representative noted. "These units stand to gain substantially from the continued development of aerospace and defence manufacturing locally."
Industry Calls for Enhanced Support and Flexibility
As the state drafts its new policy, industry stakeholders are advocating for more substantial incentives, with a particular emphasis on fostering a wider network of supplier units. A director from a leading company highlighted a key challenge: many large ventures operate in collaboration with foreign Original Equipment Manufacturers (OEMs) but are restricted to manufacturing strictly to OEM specifications and using their designated supply chains.
"This model does not adequately allow for the development of a self-reliant local industry," the director explained. The call is for a policy that nurtures indigenous capabilities and integrates local MSMEs more deeply into the global defence supply chain, aligning with the broader Make in India objectives.
Rethinking Industrial Clusters for Defence
A manufacturer presented a novel concept for spatial planning, suggesting the development of an industrial corridor tailored for defence not by relocating industries, but by connecting existing geographical clusters. The argument is that defence suppliers are diverse, ranging from textiles and chemicals to IT and casting foundries.
"It's impractical to house such varied industries in a single 'defence park.' A more effective approach would be to let industries remain in their established clusters and form a corridor linking them," the manufacturer proposed. This strategy would leverage Gujarat's existing industrial strengths without disrupting operational ecosystems.
The Road Ahead for Gujarat's A&D Ambitions
The anticipated new policy is expected to refine the state's strategy, building on the successes and learning from the limitations of the previous framework. The core aim remains to harness Gujarat's industrial prowess, especially its dynamic MSME sector, to meet national defence goals and solidify its status as a premier manufacturing and R&D destination. The announcement at the Vibrant Gujarat Regional Conference in Rajkot will be a critical step in defining the next phase of this strategic industrial growth.
