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Karnataka Cabinet Approves Aerospace Policy 2026-31 with ₹60,000 Cr Target, AI Hub and Drone Facility

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
09 Sept 2026
~2 min
Source: The Hindu
Key Data:₹60,000 crore₹20,000 crore₹4,000 crore30% capital subsidy (Zone 1)25% capital subsidy (Zone 3)₹42.83 crore drone facility
Bodies:Karnataka CabinetIndian Institute of Information Technology-Bengaluru
Practice MCQs from today's news ▸
What This Article Covers

1.Karnataka Cabinet approved the Karnataka Aerospace Policy 2026-2031 aiming for ₹60,000 crore investment over five years, with capital subsidy at 30% in Zone 1 and 25% in Zone 3 (up from 1.75-2.25%).

2.Textile and Apparel Policy 2026-2031, for the first time including silk industries, expects ₹20,000 crore investments with ₹4,000 crore government spending on financial assistance.

3.Other approvals: India's first drone-based testing facility (₹42.83 crore), a ₹35 crore AI hub as precursor to AI University at IIIT-Bengaluru, and an International Arbitration Centre (₹16 crore).

The Big Picture
Prelims · HighMains · Medium

Karnataka Cabinet has approved a new Aerospace Policy 2026-2031 targeting ₹60,000 crore investment over five years, with a steep hike in capital subsidy from ~2% to 25-30% based on zones. Alongside, a Textile & Apparel Policy (including silk) with ₹20,000 crore target and a Start-Up Policy were cleared, along with a drone testing facility, an AI hub, and an International Arbitration Centre. These decisions signal a major push for industrial diversification and state-level ease of doing business.

Exam Lens

Quick Exam Facts From News

Aerospace Policy Period2026-2031
Expected Investment (Aerospace)₹60,000 crore
Capital Subsidy Zone 130%
Capital Subsidy Zone 325%
Previous Subsidy (Non-focus)1.75% - 2.25%
Textile Policy Investment Target₹20,000 crore
Govt Spending on Textile Assistance₹4,000 crore
Drone Testing Facility Cost₹42.83 crore
AI Hub Cost₹35 crore
International Arbitration Centre Cost₹16 crore

1-Minute Revision

  • ›Aerospace Policy Period: 2026-2031
  • ›Expected Investment (Aerospace): ₹60,000 crore
  • ›Target this Data: ₹60,000 crore investment target for Aerospace Policy 2026-2031; Capital subsidy: 30% in Zone 1, 25% in Zone 3
  • ›Target this Nodal Body: Karnataka Cabinet (state-level decision); Deputy Chief Minister G. Parameshwara made the announcement
  • ›Target this Legal Point: The policies are for 2026-2031 (Aerospace, Textile) and 2026-2030 (Start-Up)

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which state's cabinet approved the Karnataka Aerospace Policy 2026-2031?

Q2Statement-basedHard

Consider the following statements regarding the Karnataka Cabinet decisions:

1. The capital subsidy under the Aerospace Policy is 30% in Zone 1 and 25% in Zone 3.

2. The Textile and Apparel Policy 2026-2031 excludes silk industries for the first time.

3. The Start-Up Policy 2026-2030 includes a 'government-first initiative' focus.

Which of the statements given above is/are correct?

Q3Data-centricMedium

What is the expected investment target for the Textile and Apparel Policy 2026-2031 approved by the Karnataka Cabinet?

Q4Application/ImpactMedium

What is the primary objective of the Karnataka Aerospace Policy 2026-2031 as per the article?

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