Aerospace & Defence Government of

1 1 ’s Rise as Aerospace & Defence Hub

2 Karnataka leading Aerospace & Defence Revolution in India

3 Ecosystem Integrators

4 Policy Push

5 Key Market Players

6 Future Opportunities India’s Rise as a Aerospace and Defence Hub

▪ 3rd largest armed forces in the world World’s largest arms importer ▪ Indian defence expenditure has CAGR @ 9.7% reached USD 42.83 billion (INR 4,283 (2008-16) Crores) in 2017-18 Sector has 69% of capital ▪ Total defence capital spending is received FDI spending is towards amounting to estimated at USD 75.38 billion (INR 4.9 acquisition of aircrafts trillion) between FY 2017 and FY 2020 INR 25.49 Defence & aero engines crores (USD 5.12 Million) ▪ Indian aviation market expected to CAGR @ 8.5% from April 2000 reach a value of US$ 54.8 billion (INR (2014-19) to June 2017 5,480 Crores) till 2019 Among largest civil as per aviation market Department of ▪ Total passenger traffic stood at 22.4 Industry Policy Crore during 2016 Expected to and Promotion become 3rd ▪ Indian carriers are expected to have largest aerospace Aerospace possessions of 800 aircrafts by 2020 industry by 2020

3 Sector Snapshot Karnataka Karnataka undisputed Leader in Aerospace & Defence Milestones in the Development of Aerospace Sector

Hindustan Aircraft Limited Launch of Boeing Research & Formed (First Technology-India centre Aircraft company) European Aeronautic Defence

1940 and Space Co (EADS), opened

Formation of an innovation centre 2023 2023 Indian - Honeywell inaugurated a Institute of research development &

Science engineering facility 1942

National Manufacturing joint venture between 2013 Policy Aerospace

Rolls-Royce and Hindustan Aerospace Karnataka Laboratories Aeronautics Limited

formed 1959

1 Phase 1 : Preparing 2 Phase 2 : Mobilizing 3 Phase 3 : Motivating

5 Karnataka’s Unique Advantages

st Presence of more than Presence of India’s ► 1 Aircraft 2,000 small and medium High flagship aircraft Manufacturing Unit enterprises focused on Existing growth manufacturing and st component Value ► 1 Space Research manufacturing, tooling & sizable aviation research organizations such as Center testing equipment and market Chain assembling HAL, NAL, ADA ► First state to announce the aerospace policy Fast tracked approvals through Single Institutional ► Bengaluru Window Mechanism Support International is the first airport in Leader in heavy India under PPP manufacturing, model Headquartered PSUs Deep IT domain such as, BHEL, ► India’s first private experience, Expertise BEML,etc. Manufacturing aerospace SEZ, Bengaluru is the in IT Expertise operational at Largest hub of world’s fourth-largest semiconductor design technology cluster Belagavi companies

6 Ecosystem Integrators Karnataka’s World Class Hi Tech Aerospace & Defence Clusters BIDAR

▪ Aerospace SEZ at Belagavi KALABURAGI ▪ Co-locating a Aerospace Training Institute co- VIJAYAPURA located with IAF training centre. YADGIR NORTH ▪ Manufacturing cluster at Belagavi CLUSTER BAGALKOTE BELAGAVI RAICHURU ▪ Establishment of Aerospace Research & Innovation Centre co-located with IISc proposed DHARWAD KOPPAL at Chitradurga GADAG

▪ Aerospace & Aeronautical University at BALLARI Davanagere UTTARA KANNADA HAVERI

▪ Establishment of Flying training school at DAVANAGERE Davanagere CENTRAL CLUSTER SHIVAMOGGA CHITRADURGA

▪ Hi-tech Defence & Aerospace Park & SEZ, CHIKKABALLAPURA UDUPI CHIKKA TUMAKURU MAGALURU . BENGALURU RURAL KOLAR ▪ MRO at KIAL & Mysuru HASSAN DAKSHINA BENGALURU KANNADA URBAN ▪ Manufacturing cluster at Dakshina Kannada District MANDYA ▪ Defence production cluster in the Aerospace sector RAMANAGARA KODAGU MYSURU around HAL Helicopter Unit, SOUTH Tumakuru CLUSTER CHAMARAJANAGARA

8 Academia, Research & Innovation Centre

► Indian Institute of Science (IISC) and Council for Scientific Industrial Research offers opportunities in research and training for aeronautical graduate ► Establishment of Aerospace Research & Innovation Centre co- located with IISc proposed at Chitradurga Colleges ► Aerospace & Aeronautical University at Davanagere & ► Establishment of Flying training school at Davanagere Training ► Co-locating a Aerospace Training Institute co-located with IAF Centres training centre

► Government-funded Indian Space Research Organization headquartered in Bengaluru ► Defence Research and Development Organization under Ministry of Defence has ten high end labs in Bengaluru/Karnataka, the most in Think-tanks any city in India & ► The Aeronautical Society of India formed a platform where Innovation engineers, industrialists and professionals could work together for Centres the industry

9 Global Linkages

March 2009 2017

India’s first public-private aerospace Government of Karnataka partners research consortium and it is devoted with Dassault Systèmes to Set Up a to emerging network technologies and Center of Excellence in Aerospace & concepts Defense December 2009 2015 Boeing, Tata Advanced Systems sign European Aeronautic Defence pact for aerospace, defence and Space company manufacturing Commenced research operations operations in Bengaluru in Bengaluru (Source: The Hindu, July 15, 2015)

March 2010 May 2009

Create a manufacturing joint Research, development venture company in Bengaluru & engineering facility in with Hindustan Aeronautics Bengaluru Limited

10 Policy Push

Karnataka Aerospace Policy 2013-23 Robust Policy Environment Position Karnataka as a vibrant aerospace hub of Asia and a globally recognised aerospace destination

Phase II (2018-23)

► Attract investments to the tune of INR 36,000 crores (6 Billion USD) in the Aerospace sector ► Create additional employment opportunities (direct and indirect) to about 60,000 persons in the next five years by a process of inclusive development ► Enhance the contribution of Aerospace sector towards increasing the share of industry in the State’s GDP from 30% to 32%

12 Since 2013-14 the State has approved 119 project proposals with a proposed investment of INR 11,820 crore with an employment potential for about 35,000 persons

►Investment Promotion subsidy ►Exemption from stamp duty Incentives ►Concessional registration charges ►Exemption from entry tax ►Subsidy for Effluent Treatment Plant (ETP) ►Exemption from tax on electricity tariff

► Boosting exports ► Focus on R&D Policy ► Encourage in the State to ► Operationalization of support MRO as a strategic Bengaluru Aerospace Park and Highlights activity Aerospace SEZ ► Setting up of MRO facilities ► Special incentives for MRO segment

► Focus on cluster approach ► Aerospace University and Flying school ► Funding Ventures through Karnataka Differentiators Aerospace Venture Capital Fund ► Aerospace, Research & Innovation Centre

13 Key Players Global companies in Karnataka

15 Future Opportunities Bengaluru’s Heli-taxi Service

Establishment and Strengthening of Infrastructure 1 Augmenting capacity for Research, Design 2 and Development for defence products Bengaluru is set to launch a Encouraging synergistic sectors like civil helicopter taxi service from aerospace and internal security 3 its international airport to Electronics City, helping Building collaborations and investments in passengers save hours in 4 emerging technologies commute and beat the city’s traffic Focus on skill development to enhance Thumby Aviation will start generation of technical manpower 5 the service with one helicopter, eventually Establishing MRO facilities to achieve faster expand to connect 6 turnaround times Whitefield, the HAL airport, and some high-rise buildings that have rooftop helipads, based on the demand 17 Thank You