The western state of Gujarat in India, has released an investor-friendly Aerospace and Defense Policy 2016 that offers 10-year incentives in relation to land allotment, stamp duty, registration charges and electricity duty, to attract defense and aerospace manufacturers reports Defense World.
Terms of this policy are:
- The state will now provide government land at 50% of jantri, or basic land rates, for setting up units during the five-year tenure of the policy
- Land owned by the state and the Gujarat Industrial Development Corporation will be given first preference for land allotment
- A 100% rebate on stamp duty and registration charges levied on land purchased
- Electricity duty waiver for a period of five years since the commencement of production
- a facility for testing and trials will also be made available
- tax relief up to 90% of fixed capital investment, which could go up to 100% depending on the financial constraints faced by any player
The policy also provides for cash and interest subsidies for aerospace and defense sector players wanting to establish their units in the state: the government will offer a cash subsidy up to $367,000 ( Rs 2.50 crore) for Micro, Small and Medium Enterprise units.
Last updated: December 26th, 2025
