Karnataka Approves Aerospace Policy 2026-31 and Jobs Measures

The Karnataka Cabinet has finalized the Karnataka Aerospace Policy 2026-31, in addition to a list of initiatives meant to lure industrial ventures and create job opportunities as well as address regional imbalances. According to the deputy chief minister G Parameshwara, the policy will offer subsidy assistance to aerospace-related ventures located in focus and non-focus areas. Among the other initiatives cleared by the cabinet were the Shramika Nivas project to offer housing facilities to industrial laborers close to their workplace, employment-based incentives for industries, and improvements in taluk hospitals.

What is the Karnataka Aerospace Policy 2026-31?

The Karnataka Aerospace Policy 2026-31 seeks to boost investments in aerospace technology and manufacturing in the state.

According to Parameshwara, there will be subsidy elements for industries based in focus and non-focus areas. The policy is being rolled out amid efforts by the state to boost its standing as an important aerospace manufacturing destination.

There is already considerable aerospace industry activity in Bengaluru, where Tata Advanced Systems is set to manufacture 40 aircraft and Hindustan Aeronautics Limited (HAL) will make 97 Light Combat Aircraft.

Incentives for Industries in Backward and Most Backward Taluks

The Cabinet gave clearance for the incentives, which will be used to induce industries to make investments in backward and most backward taluks.

Industries that will make investments in backward taluks will get incentives of up to 10%, whereas in the case of industries making investments in most backward taluks, incentives of up to 20% can be provided.

The industries that will be focused upon are,

Aerospace
Defence
Automobile
Electric vehicle
Electronics
Semiconductor

The incentive would be based on the level of backwardness determined by Govinda Rao report.

Shramika Nivas Scheme

The Shramika Nivas scheme will be a project to provide houses to the industrial labourers near their work places.

It is proposed to build initially 10,000 houses. The companies and industries will create the housing facilities under the government subsidy.

Employment Incentives for Industries

Another way to create jobs will be by giving incentives of ₹2,500 to industries for each worker hired for two years.

Companies will pay their respective portions towards the Employees’ Provident Fund (EPF) and other components. This will ensure that industries are motivated to generate more jobs.