UP Aerospace & Defence Policy 2024: Complete Guide
What Is the Policy?
The UP Aerospace & Defence Policy, 2024 (formally the UP Defence & Aerospace Unit & Employment Promotion Policy) supersedes the 2022 policy, with a First Amendment subsequently notified. It runs under the Infrastructure & Industrial Development Department, with UPEIDA as the corridor implementing agency.
What's Covered?
Manufacturing of defence and aerospace platforms, systems, sub-systems, components, ammunition, drones and counter-drone systems, avionics, and testing and certification facilities.
What Is UPDIC?
The Uttar Pradesh Defence Industrial Corridor (UPDIC) โ six nodes at Aligarh, Agra, Jhansi, Chitrakoot, Kanpur, and Lucknow, developed by UPEIDA with dedicated land and infrastructure.
Key Incentives
| What | Details |
|---|---|
| Land subsidy | In UPDIC nodes |
| Capital subsidy | On eligible investment |
| Stamp duty exemption | On applicable documentation |
| SGST reimbursement | On eligible sales |
| Interest subsidy | On eligible loans |
| Certification, patent & skill development reimbursement | Distinguishing feature of this policy โ the certification burden in defence supply is disproportionately high |
Who Is Eligible?
- Anchor units in UPDIC nodes
- Ancillary and component units
- MSMEs in the defence supply chain
- Testing and certification infrastructure developers
Does This Matter If I'm Not Inside a UPDIC Node?
Gautam Buddh Nagar is not a UPDIC node, but component and electronics suppliers based here can still supply into the corridor, and may claim under this policy if the unit qualifies. Confirm whether being located within a node is a condition for the specific incentive head you're claiming โ it isn't uniform across every head.
How Does It Converge with Central Schemes?
With iDEX, the Defence Testing Infrastructure Scheme, and Ministry of Defence offset and indigenisation programmes.
Frequently Asked Questions
Why does certification reimbursement matter so much for this sector?
Defence supply chains carry a heavy certification and testing burden compared to most other manufacturing โ reimbursement of these costs is one of this policy's distinguishing features.
Can a Noida-based electronics supplier benefit even without a UPDIC-node facility?
Potentially yes, if supplying into the corridor and the unit otherwise qualifies โ but confirm the location condition for your specific incentive head with UPEIDA.
Setting up a defence or aerospace manufacturing unit in UP?
ClaimDesk (A NorthStar Advisors brand, Noida) helps you navigate UPDIC eligibility and the certification reimbursement heads. The first conversation is completely free.
MSMEUP.com is independent information & tools โ free, and not run by any consultancy. ClaimDesk is a separate, private consultancy (a NorthStar Advisors brand) for those who want professional filing help; its fee is for that service, not a government charge, and using it is entirely optional โ MSMEUP's guides and tools work the same with or without it.
Official portal: niveshmitra.up.gov.in Last reviewed: Aug 2026
This page summarizes publicly available scheme information. For the current official notification, application form and exact eligibility conditions, always confirm on the portal above before applying or filing a claim.