The Uttar Pradesh government has signed more than 150 defence manufacturing agreements valued at Rs 25,000 crore (approximately 3 billion USD). This move aligns with India’s record-breaking annual defence production, which reached Rs 1.27 trillion (15.4 billion USD) in the fiscal year 2023-24, marking a 16.7 per cent increase from the previous year.
The defence projects are strategically located within the UP Defence Industrial Corridor (UPDIC), spanning six nodes across Lucknow, Kanpur, Jhansi, Aligarh, Chitrakoot and Agra districts. These projects are expected to generate 40,000 new jobs, significantly contributing to the state’s economic growth.
“We have signed 154 memorandums of understanding (MoUs) with various companies, and around 85 more deals are currently under evaluation,” an official said.
The UP Expressway Industrial Development Authority (UPEIDA), the nodal agency for the corridor, continues to acquire large tracts of land for industrial allocation. The UPEIDA has already acquired 1,700 hectares, with more than 40 companies receiving land allocations.
“These 42 companies will invest nearly Rs 8,000 crore in their respective projects, positioning UP as a crucial player in India’s quest for self-reliance in defence production and boosting defence exports,” the official said.
The UPEIDA has signed MoUs with notable firms such as Adani Defence and Aerospace, BrahMos Aerospace, Ancor Research Labs, Tata Technologies, Bharat Dynamics Limited, Delta Combat Systems, SpiceJet Technic, Verivision, HAL, Gliders India, DRDO, and Aerolloy Technologies, among others.
India’s defence exports rose by over 32 per cent from Rs 15,920 crore in 2022-23 to Rs 21,083 crore in 2023-24, as per the defence ministry. UP is leveraging its vast micro, small and medium enterprise (MSME) base to propel ‘Make in UP’ and cater to the expanding defence export market by advancing its industrial value chain.
Additionally, 35,000 Kalashnikov AK-203 assault rifles, assembled at the Korwa factory in Amethi, have been delivered to the Army by Indo-Russia Rifles Private Limited. The production of nearly 6,00,000 AK-203 rifles is planned over 10 years.
Though Amethi is not part of the UP Defence Industrial Corridor, the Korwa unit has strengthened the state’s role in India’s defence manufacturing ecosystem. Another Indo-Russia joint venture plant, spread over 80 hectares, is being established in Lucknow to manufacture BrahMos missiles for the Indian defence forces. BrahMos is a joint venture between India’s DRDO and Russia’s NPOM to develop next-generation supersonic missiles for the Indian military.
