The Road is Here
Mohammad Asif Khan
The government of India announced the establishment of Defence Industrial Corridors (DICs) in 2018 with the primary goal of consolidating and strengthening the nation’s defence manufacturing capabilities.
BRAHMOS is one of the investors in UPDIC
This initiative aimed at reducing import dependence by stimulating domestic production within the defence sector. Two initial DICs were created, one in Uttar Pradesh (UP) and another in Tamil Nadu (TN). Each corridor encompassed several strategically chosen nodal points that provide a supportive environment for defence industries. These locations were designed to foster the development of a holistic ecosystem, encompassing infrastructure, a skilled workforce and access to advanced technologies.
The DICs aimed to create a nurturing environment to attract and support domestic companies, including private firms, small and medium enterprises (MSMEs) and startups, to actively participate in defence manufacturing. The DICs are expected to generate economic growth within the host states.
Local businesses will benefit from fulfilling the needs of the armed forces, leading to job creation and increased investment. Additionally, a robust domestic supply chain for defence equipment is crucial for the Indian armed forces. The DICs aimed to improve their operational efficiency by ensuring timely availability of critical equipment.
In the years leading up to 2018, India’s defence sector faced a significant challenge—excessive reliance on imports for military equipment. This dependence made the country vulnerable to external factors, impacting price, delivery timelines, and even potentially limiting access to crucial supplies. Furthermore, India’s domestic defence industry lacked the infrastructure, technology and investment required to manufacture a substantial portion of its own military needs. This resulted in a scattered production landscape, hindering collaboration and efficient use of resources.
The UP DIC
The UP DIC spans six locations across Uttar Pradesh, each focusing on specific areas like aerospace and defence manufacturing. The corridor is planned across six nodes, namely—Lucknow, Kanpur, Jhansi, Agra, Aligarh and Chitrakoot, which spreads across the central, eastern, and western regions of Uttar Pradesh and along the Golden Quadrilateral connecting Delhi to Kolkata, supported by networks of expressways.
The project had an encouraging start with the announcement of investments worth over INR 3,700 crores in defence production at a meeting organised in Aligarh on 11 August 2018. The Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) was made the nodal agency to execute this project in conjunction with various other state agencies.
The corridor has garnered over 114 investment proposals totalling INR 24,510.60 crore. These investments have the potential to create over 41,000 jobs within the corridor. A critical environmental clearance was granted by the Indian government in January 2024, signifying a major step forward for the project. The UP DIC has fostered collaboration between domestic entities and major defence companies.
This is backed by the 138 Memoranda of Understanding (MoUs) signed across the corridor’s six locations. Some prominent companies involved include BrahMos Aerospace, Bharat Dynamics Ltd, Tata Technologies and Adani Defence Systems & Technologies.
Early signs of domestic defence production within the corridor are already emerging. Adani Defence & Aerospace has unveiled two expansive facilities within the UP defence corridor in Kanpur, dedicated to producing various calibre ammunition and missiles. These facilities are anticipated to address the needs of the armed forces and police, reducing reliance on defence public sector undertakings for supplies. Similarly, Aerolloy Technologies is producing components for aircraft engines, drones, submarines and other defence applications.
I
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