The Uttar Pradesh government has signed more than 150 defence manufacturing agreements valued at ₹25,000 crore.
UP Defence Corridor Attracts Rs 25,000 Crore In Deals
The Uttar Pradesh government has signed more than 150 defence manufacturing agreements valued at ₹25,000 crore. This move aligns with India’s record-breaking annual defence production, which reached ₹1.27 trillion in the fiscal year 2023-24, marking a 16.7% 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.
India’s defence exports witnessed a remarkable 32% surge, reaching ₹21,083 crore ($2.5 billion USD) in 2023-24. UP is leveraging its vast MSME (Micro, Small, and Medium Enterprises) base to propel the “Make in UP” initiative. The Corridor’s nodal agency UP Expressway Industrial Development Authority continues to acquire swathes of land for allotment to industrial groups. UPEIDA has already acquired 1,700 hectares of land, while more than 40 companies have been allocated land.
“These 42 companies will invest nearly Rs 8,000 crore in their respective projects, which will make UP a critical cog in India’s ambition to attain self-reliance in defence production and boost defence exports,” the official said. UPEIDA has signed MoUs with Adani Defence and Aerospace, BrahMos Aerospace, Ancor Research Labs, Tata Technologies, Bharat Dynamics Limited, Delta Combat Systems, SpiceJet Technic, Veri vision, HAL, Gliders India, DRDO, Aerolloy Technologies, among others.
A total of 35,000 Kalashnikov AK-203 assault rifles, assembled at the Korwa factory in Amethi district of UP, have been delivered to the Army by the joint venture Indo-Russia Rifles Private Limited. The manufacturing of nearly 600,000 AK-203 rifles will be spread over 10 years. Although Amethi is not a part of the UP Defence Corridor, the Korwa unit has boosted the state’s ambition to play a key role in India’s defence manufacturing ecosystem. Another Indo-Russia joint venture plant spread over 80 hectares is coming up in Lucknow to manufacture BrahMos missiles.
