Karnataka to Build INR 650 Cr Space and Defence Manufacturing Park, Eyes 50% Share in Space Market The park, set to open in 18-24 months, will include testing centres and simulation labs, boosting economies of scale, indigenisation, and fostering collaborations between domestic and international space and defence players.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The Karnataka government has announced plans to establish a state-of-the-art space and defence manufacturing park with an estimated investment of INR 600-INR 650 crore. This ambitious initiative, part of Karnataka's Space Policy (2025-2029), aims to secure a dominant 50% share of India's burgeoning space market.
Envisioned under the public-private partnership (PPP) model, the hub seeks to bolster the state's deep-tech ecosystem, spanning sectors such as space, defence, and advanced manufacturing. The project reflects Karnataka's commitment to leveraging its existing technological and industrial strengths to create high-value employment and drive innovation.
Priyank Kharge, Karnataka's IT and Biotechnology (IT-BT) Minister, emphasized the state's legacy in aerospace, defence, and space sectors, citing the pivotal role played by institutions like the Indian Space Research Organisation (ISRO) and the Defence Research and Development Organisation (DRDO). "The presence of ISRO headquarters and allied centres, along with DRDO labs, has fostered a mature industrial ecosystem in Karnataka," Kharge stated. He added that the state would actively engage with industry players to ensure seamless access to infrastructure through the PPP model.
The park, which will be operational within 18-24 months after development begins, will feature integrated facilities such as common testing centres and simulation labs. These facilities are expected to enhance economies of scale, facilitate indigenisation, and enable collaborations among domestic and international players.
Ekroop Caur, Secretary of the IT-BT Department, highlighted the strategic importance of the park's testing and certification capabilities. "Testing and certifications are critical for this sector. The hub will serve as a central collaboration point, fostering innovation and partnerships," she said.
The state is also focusing on downstream applications of space technology, a growing market segment with significant potential. By encouraging companies to move up the value chain in space and aerospace manufacturing, Karnataka aims to strengthen its position in the global space economy.
In tandem with the space initiative, Karnataka is aggressively pursuing defence electronics manufacturing, with major activities planned at the Aerospace Park in Devanahalli.
Karnataka's aerospace and defence policy (2022-2027) offers incentives to startups, MSMEs, and large enterprises, reinforcing its position as India's leading destination for investments in these sectors. The state currently hosts 32 spacetech companies with USD 323 million in total funding and 15 defence tech companies with USD 123 million, the highest in India, according to Tracxn.
As India's space sector is projected to grow to USD 44 billion over the next decade, Karnataka's comprehensive strategy aligns with its vision of becoming a global hub for innovation and manufacturing in space and defence technologies. The initiative also includes training 5,000 students and professionals to meet global standards, ensuring a skilled workforce for the industry's future.
