The Tamil Nadu government has stepped up efforts to position the State as a key aerospace and defence (A&D) manufacturing hub, taking its outreach campaign to industries across various cities to showcase business opportunities emerging from India’s rapidly expanding defence sector.

At an industry interaction organised by the Tamil Nadu Defence Industrial Corridor (TNDIC) in Madurai, officials from the Tamil Nadu Industrial Development Corporation (TIDCO) said India’s defence production had crossed ₹1.54 lakh crore last year, while exports exceeded ₹38,000 crore.

With the Centre targeting ₹3 lakh crore in defence production and ₹50,000 crore in exports by 2029, Tamil Nadu is seeking to attract a significant share of investments and manufacturing activity.

The officials highlighted multi-billion-dollar opportunities across major defence and aerospace programmes, including Future Ready Combat Vehicles, Future Infantry Combat Vehicles, the Advanced Medium Combat Aircraft, Medium Role Fighter Aircraft, submarines, maintenance, repair and overhaul, propellants and the space sector.

These programmes, they said, offer substantial opportunities for Tamil Nadu’s MSMEs and large manufacturers to become part of domestic and global supply chains.

The State is also encouraging companies to tap initiatives such as Innovations for Defence Excellence, DRDO’s Technology Development Fund, technology transfers from DRDO, the Srijan indigenisation portal and the growing export market for Indian defence products.

To support companies entering the sector, the State has introduced a range of measures under the Tamil Nadu Aerospace and Defence Industrial Policy, including higher capital subsidies, certification support, vendor development programmes, common facility centres and testing infrastructure. It has also partnered with IIT Madras and DRDO to improve access to technology.

Tamil Nadu is investing in specialised infrastructure through the Defence Industrial Corridor, including aerospace and defence parks, engineering and innovation centres, common testing facilities and Centres of Excellence for advanced manufacturing, with the aim of reducing entry barriers for MSMEs and startups.

The outreach programme in Madurai is part of a series of consultations being organised in Coimbatore, Hosur, Tiruchi, Chennai and Madurai ahead of the National Departmental Summit on Atmanirbharata in Defence Manufacturing – Promoting State Ecosystems, scheduled to be held in New Delhi on August 20 and 21.

The summit aims to strengthen State and Union Territory-level defence and aerospace ecosystems, align them with national indigenisation goals and prepare State-specific action plans.

Tamil Nadu has submitted a detailed presentation highlighting its Aerospace and Defence Industrial Policy 2022, defence manufacturing clusters, anchor investor engagements, Defence Testing Infrastructure Scheme (DTIS) facilities, common infrastructure, skill development initiatives and areas where support from the Centre is required, said sources.

Published on June 26, 2026