The Tamil Nadu government in considering an investment of worth $15 billion in the aerospace and defense department during the next 15 years to enable the State the most popular hub for both the sectors.
When Nirmala Sitharaman revealed the most awaited desirous aerospace and defense policy, the Defence Minister investment of $15 billion was informed. During the opening day of the Global Investors Meet the second edition on Wednesday, it was mentioned.
The main goal of the policy is to shape Tamil Nadu as the most preferred hub for aerospace and defense industries across India especially in the areas of design engineering, allied operations, and manufacturing.
In Tiruchirappalli, on January 20 the Defence Minister Sitharaman has unveiled the Tamil Nadu Defence Industrial Corridor which is about 300km away from Chennai. Investment of worth more than Rs 3,038 crore, at this defense corridor it was stated among them the majority of them were from public sector undertakings.
The objective of the Aerospace and Defence policy is to draw investment of around $5 billion in the next 5 year and later investment of another $10 billion by ten years mainly in the aerospace and defense department
The government also intends to create more job of around 1 lakh during the initial ten years especially in the field of aerospace and defense sectors.
Apart from this Aerospace and Defence sectors will be boosted, the policy will also control the strengths of Tamil Nadu mainly in the automotive manufacturing industry.
Tamil Nadu is home for most popular automobile companies. These companies have established themselves in the State among them the most popular are the following one’s Ford, BMW, Hyundai Motor India, and India Yamaha Motors.
The government also desires to develop Center of Excellence, Skill development institutions and Research and Development centers within the State by drawing the attention of global OEMs [Original equipment manufacturers] and top Indian companies across Tamil Nadu.
Some of the important benefits about Tamil Nadu in boosting the industries have covered in the policy. Namely, the state will rank first depending upon the number of factories and industries employees.
Tamil Nadu’s Gross State Domestic Product has increased at an annual growth rate of around 9 percent during the year 2004-2005 and during 2016-2017 average rate of around 7.5 percent growth higher than the national growth rate.
In India, Tamil Nadu is the third largest manufacturer of electronic and hardware, and the electronic hardware companies of the State noticed a growth, the annual growth rate from 2008 was around 30 percent.
In State, fortune 500 companies have established the manufacturing facilities which includes companies like Dell Computers, Motorola, Foxconn, Flextronics, Samsung Sanmina-SCI and other it mentioned.
To build the aerospace and defense industry in the State, the government is considering undertaking Cluster development and use appropriate approach to develop the aerospace and defense manufacturing unit by building the most needed infrastructure.
Some of the government agencies like the Tamil Nadu Industrial Government Corporation and SIPCOT will develop parks related to aerospace and defense industries using adequate infrastructure within the State.
The government will establish single window clearance facility through the Tamil Nadu Industrial Guidance Bureau that will look after the overall industry of aerospace and defense mostly associated with the infrastructure and manufacturing projects regardless of the size of the investment, it stated.
The formal launch of the aerospace and defense policy was revealed by the Defence Minister Sitharaman and the first copy of the policy was accepted by the Chief Minister of Tamil Nadu K Palaniswami.