Karnataka Cabinet Approves Aerospace Policy 2026–2031, Targeting ₹60,000 Crore Investment

In a major boost to industrial growth and technology infrastructure, the Karnataka Cabinet on Wednesday approved the Karnataka Aerospace Policy 2026–2031. The policy focuses on expanding aerospace, defence, aviation, and space research and development, with an expectation of securing approximately ₹60,000 crore in private investments over the next five years. To incentivize private sector participation and encourage decentralization, the government has categorized regions into distinct focus and non-focus zones, increasing capital subsidies up to 30% in specified zones. In addition, the Cabinet approved the Textile and Apparel Policy 2026–2031, which incorporates the silk industry for the first time and targets an additional ₹20,000 crore in investments. The state plans to spend nearly ₹4,000 crore on financial assistance and power subsidies across 33 focused taluks. Further strengthening the state's innovation ecosystem, the Cabinet sanctioned a drone-testing facility at Chikkaballapur valued at ₹42.83 crore, a ₹35-crore Artificial Intelligence (AI) hub at IIIT-Bengaluru as a precursor to an AI University, and an International Arbitration Centre in Bengaluru. These strategic policy approvals reinforce Karnataka's leadership as a top technology, manufacturing, and R&D hub in India, paving the way for thousands of high-skilled job opportunities.