Bringing a major change to India’s aerospace sector, Chief Minister N. The Andhra Pradesh government under the leadership of Chandrababu Naidu has entered into an important Memorandum of Understanding (MoU) with Mumbai-based Airpace Industries Limited to lead the country’s first drone city. Andhra Pradesh Economic Development Board (APEDB) ratified the agreement, promoting the state’s vision of promoting indigenous drone innovation, unmanned aerial systems and advanced manufacturing ecosystem.

This collaboration reflects Naidu’s special push for tech-driven growth, which aligns seamlessly with the Developed India@2047 blueprint. Spread over 300 acres at Orvakal near Kurnool airport—within a larger 2,621-acre high-tech corridor—the Drone City will emerge as a global center for UAV research, prototyping, testing and commercialization. Equipped with seamless road, rail and air links, it promises to attract $1 trillion of investment over the next decade, fueling advances in AI, semiconductor and quantum.

Chief Minister Naidu described the venture as a “game-changer for the country’s progress”, and stressed the role of drones in agriculture, logistics, defense and disaster response. “Andhra Pradesh is building a future where innovation will take off without any restrictions, making India the drone powerhouse of the world,” he said while laying the virtual foundation stone at the CII Partnership Summit with Union Minister Piyush Goyal.

Airpace, a trailblazer in AI-integrated UAV and sustainable aerial tech, introduces its Airshield Defense portfolio and Airwing mobility solution. Starting in 2025, the firm is engaged in rigorous technical evaluation with state authorities. Under the MoU, Airspace will jointly develop state-of-the-art facilities for drone manufacturing, AI platforms, component R&D, and pilot training—targeting 25,000 skilled professionals. Key initiatives include defence-grade UAVs for border surveillance and logistics drones for e-commerce, which will strengthen Airspace’s verticals in cargo delivery and VTOL systems.

Ravi Soni, Executive Director, Airspace, enthused: “This MoU is a cornerstone for sovereign aerospace capabilities. We are dedicated to improving India’s unmanned tech landscape through great collaboration.”

Reiterating Goyal’s advocacy for next-gen manufacturing, the project aligns with AP’s Space Policy 4.0, which aims to generate inflows of ₹25,000 crore and 35,000 jobs through incentives like 20% capital subsidy and R&D grants. The phased rollout—which includes easing regulation, building infrastructure, and connecting the ecosystem—is starting immediately, with milestones for tie-ups with global firms.

As Andhra Pradesh accelerates its drone revolution, this MoU not only empowers a self-reliant India, but also ushers in a new era of aerial innovation, empowering startups and strengthening national security.