Telangana is on course to emerge as India’s undisputed aerospace and defence capital by 2030, Minister N. Uttam Kumar Reddy said here on Friday.

The State government has identified aerospace and defence among priority sectors under its industrial policy framework, Mr. Reddy, who is Irrigation, CAD, Food and Civil Supplies Minister, told ‘MSME Spark 3.0’ aerospace and defence manufacturing conclave organised by the Federation of Telangana Chambers of Commerce and Industry (FTCCI).

Hyderabad is one of the most cost-effective aerospace destinations globally, he said, highlighting the city’s strong ecosystem. Nearly 1,500 MSMEs in Telangana are part of the aerospace and defence supply chain ecosystem. The State government’s focus on skill development is bound to significantly contribute towards strengthening of India’s defence equipment manufacturing ecosystem, he said.

Former chairman of Defence Research and Development Organisation G. Satheesh Reddy and distinguished scientist and Director General (Production Coordination and Services Interaction) of DRDO Chandrika Kaushik, while addressing the inaugural session, said that the conference coincides with the first anniversary of Operation Sindoor.

Ms. Kaushik said success of the Operation underscored the growing strength of India’s indigenous defence manufacturing ecosystem and the significant role played by MSMEs.

India’s defence budget for current fiscal is ₹7.85 lakh crore, with a capital outlay of ₹2.19 lakh crore, of which over 75% has been earmarked for the domestic industry translating into enormous opportunities for Indian MSMEs, startups, and private enterprises.

More than 2,000 firms are development partners in DRDO projects across sectors, including missiles, radars, torpedoes, arms, ammunition and advanced systems. Under the new Technology Transfer Policy 2025, it offers free renewal, free handholding support for twelve weeks, and zero licence fee for development partners and production agencies. Also, more than 750 DRDO patents are now being offered to Indian industry royalty-free and at zero cost to encourage indigenous innovation, she said.

On defence procurement reforms, Ms.Chandrika Kaushik said the Defence Acquisition Procedure has created dedicated pathways for MSMEs. DRDO’s Technology Development Fund provides grant-in-aid support of up to 90% of project cost or ₹50 crore specifically for MSMEs and startups.

Mr. Satheesh Reddy said Hyderabad has emerged as a major defence and aerospace centre due to the presence of several premier defence institutions and industries. Funding support is no longer a major challenge for innovation-driven enterprises, he said encouraging startups and MSMEs to actively participate. FTCCI President R.Ravi Kumar also spoke.