In a major boost to industrial growth and employment generation outside Bengaluru, the Karnataka Cabinet on September 9, 2026 approved the Karnataka Aerospace Policy 2026–31. Announcing the cabinet decisions, Deputy Chief Minister Dr. G. Parameshwara stated that the new policy aims to attract ₹60,000 crore in private investments over the next five years and create approximately 60,000 skilled jobs. The policy offers capital subsidies ranging between 25% and 30% for investments in aerospace, defence, aviation, space research, and avionics, with specific incentives provided for focus taluks across the state. In tandem with the aerospace policy, the cabinet also cleared the 'Shramika Nivas' scheme to construct 10,000 housing units near workplaces for industrial laborers, with land support provided by the Karnataka Industrial Areas Development Board (KIADB). Additionally, financial incentives were approved for industries setting up units in backward and most backward taluks to promote balanced regional economic development.
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