Hyderabad emerging as India’s aerospace and defence capital: Uttam Reddy

Over 1,500 MSMEs are already active in the state's aerospace and defence supply chain.

Hyderabad: Hailing India’s defence sector transformation, Telangana Minister of Irrigation and Civil Supplies, Uttam Kumar Reddy, said it has positioned Hyderabad as the undisputed nerve centre of the country’s aerospace and defence ecosystem.

The sector in Telangana, Reddy said, is witnessing over 30 per cent annual growth, with exports registering a staggering 103 per cent compound annual growth rate (CAGR) between 2024 and 2026.

Over 1,500 MSMEs are already active in the state’s aerospace and defence supply chain. The minister made the remarks while delivering the keynote address at MSME SPARK 3.0.

Reddy attributed the growth to the early Congress governments, which focused on building a strong defence industry. The continuous work by the following governments allowed the country to grow quickly and now produce over 60 per cent of its own military equipment.

“Exports have surged 34 times- from Rs 686 crore to Rs 23,622 crore over a period of time,” he said. India is ready to achieve a production target of Rs 3 lakh crore and an export target of Rs 50,000 crore by 2029, he added.

The growth is evident through the 16,000 small and medium businesses already in the national defence supply chain, and private sector involvement is increasing. This progress points toward a huge domestic market potential of Rs 10 lakh crore over the next two decades.

Hyderabad co-authoring India’s defence story

Hyderabad is not merely participating in India’s defence journey; it is shaping it, Minister Reddy declared.

“Telangana has been adjudged the best state for aerospace for five consecutive years and ranked the world’s most cost-effective aerospace city by the Financial Times FDI rankings,” he said.

The Minister highlighted Hyderabad’s unique ecosystem, featuring a high concentration of Defence Research and Development Organisation (DRDO) laboratories, major public sector units like Bharat Dynamics Ltd (BDL) and Hindustan Aeronautics Ltd (HAL), and global aerospace leaders such as Boeing and Lockheed Martin.

Reddy noted that aerospace parks at Adibatla and GMR, along with new clusters in Eliminedu and Medak, offer easy access for international startups. To support this growth, the new Young India Skill University will focus on training talent for advanced manufacturing.

The Minister detailed several initiatives the state government has taken to accelerate growth. Aerospace and Defence have been declared priority sectors under the Telangana Industrial Policy.