ic.gujarat.gov.in Aerospace & Defence Incentive scheme : Gujarat

Organisation : Industries Commissionerate
Scheme Name : Gujarat Aerospace & Defence (A&D) Incentive scheme
Applicable For : Aerospace and Defence Enterprise
Website : http://www.ic.gujarat.gov.in/
Terms & Conditions : https://www.statusin.in/uploads/26378-AD-Incentive.pdf

A&D Incentive Scheme :

India has the third Largest armed forces and the eighth highest defence expenditure in the world. With 70o/o of the defence capital expenditure spent on imports, India is the largest importer of defence equipment in the world.

Related : IC Gujarat ASIDE Scheme : www.statusin.in/23627.html

Government of India has increased the Foreign Direct Investment (FDD limit for the Defence sector to 49o/o; and even higher for foreign investors bringing state of the art technology into the country.

The Licensing requirement for manufacturing defence products has been relaxed, which makes it easier for private sector to enter into the aerospace and defence (A&D) supply chain.

A large volume of military hardware is expected to be procured by Government of India over the next decade and, with ample supply of engineers, scientists and competitive skilled workforce, Indian companies can play a key role across the A&D manufacturing value chain – research, design, development, manufacturing, maintenance, quality control and training. Moreover, defence offset opportunities can be availed in the coming years.

Government of lndia’s priority is to indigenize the A&D industry, attract global players to manufacture in India, and lower the dependence on imports in the sector.

The A&D sector also benefits the states in that it has the potential to create large employment opportunities, especially for the skilled youth, and can bring in advanced technology which can also benefit other industrial sectors in the state.

Vision and Objectives :
The vision of the government is to ‘establish Gujarat as a hub for indigenous aerospace & defence manufacturing develop globally competitive talent in the sector, promote investment in R&D to drive globally recognized innovation in product design and manufacturing & and support enabling institutions in the A&D manufacturing ecosystem

The objectives of coming out with an incentive scheme for A&D sector are to :
** Attract 10 o/o by value of orders of the defence sector in India over the next 10 years
** Attract five mega A&D enterprises to the state in the next 5 years
** Develop the A&D ecosystem in the state

** Develop skilled manpower and innovation in the A&D sector across the research, design, development and manufacturing value chain.
** Create 20,000 direct/indirect jobs in the A&D sector over the next 10 years.

Focus Sectors :
The focus sectors identified in the A&D eco-system are as below :
** Artillery
** Automotive
** Ship building
** Defence Engineering

** Defence Electronics
** Small arms and ammunition
** Defence-tech textiles
** Logistics

** Casting and forging products
** Maintenance, Repair and Overhaul (MRO)
** Ancillary Cluster Development
** Testing Ranges
** Research & Development

ln order to attract investments in the emerging A&D sector and to encourage domestic and global companies to set up manufacturing R&D, maintenance, training and other related facilities in the state in this sector, the issue of coming out with a suitable incentive scheme was under consideration. The government is pleased to announce this comprehensive A&D incentive scheme.

Resolution :
Government of Gujarat is pleased to introduce an incentive scheme for Aerospace and Defence Enterprises, which shall come into force from the date of issue of this resolution and will remain in force till 31st December 2025.

1. Definitions :
1.1 Aerospace and Defence products :
For determining whether a product / technology is in the category of aerospace and/or defence, the provision/definition contained in any policy, scheme or any other related document of Government of India shall be referred.

1.2 Tiers of Suppliers :
1) Tier-l supplier is one who manufactures and supplies sub-assemblies and allied A&D items / components / equipment / parts / accessories to OEMs.

2) Tier-Z supplier is one who manufactures and supplies to sub-assemblies and allied A&D items / components / equipment / parts / accessories to Tier l supplier.

3) Tier-3 supplier is one who one who manufactures and supplies basic components or parts, such as casting forging special steels, technical fabrics, electronic items, or such others to the A&D supply chain. 1.3 Mega A&D Enterprise

A Mega A&D Enterprise is one that fulfills each of the following conditions :
1) Is a global/Indian 0riginal Equipment Manufacturer (OEM), i.e. a company which designs and manufactures the A&D platform and makes investment of 500 crore or above in the project; and

2) Has on hand A&D orders of t 50 crore or above at the time of commencement of production. For this purpose, the definition of an A&D order is a contract with the Ministry of Defence or the Ministry of Home Affairs in Government of India or their equivalent in a foreign country.