Andhra Pradesh Gears Up for a ₹3,400 Crore Space and Defense Boom

Andhra Pradesh is set to make a significant leap in the aerospace and defence sectors with plans to establish a Space City in Tirupati and two defence manufacturing hubs in Madakasira.

In partnership with Skyroot Aerospace—a startup founded by former ISRO scientists—the state will develop a 300-acre space city with an investment of ₹400 crore. The facility will support private satellite launches and include rocket manufacturing, assembly, testing, and storage infrastructure.

Parallelly, two major defence hubs will be established with a combined investment of ₹3,000 crore:

Kalyani Strategic Systems Ltd. (KSSL) will set up a Defence Energetics Manufacturing Complex on 1,000 acres, producing explosives, ammunition, and gun propellants.

HFCL will build an artillery and ammunition complex on an adjacent 1,000-acre site, manufacturing shells, TNT, and grenades.

Located strategically near Bengaluru, these hubs aim to bolster India’s defence manufacturing ecosystem and reduce import dependence.

Chief Minister N. Chandrababu Naidu has set a target of attracting ₹50,000–₹1,00,000 crore in aerospace and defence investments over the next five years, positioning Andhra Pradesh as a national leader in high-tech manufacturing.

News by Rahul Yelligetti.