Telangana Aerospace and Defence Exports Double to Rs 32,850 Crore Overtaking Pharma as State Leading Export

Hyderabad's industrial pecking order has undergone a historic shift. Aerospace and defence (A&D) exports from Telangana jumped from ₹15,940 crore in FY 2023–24 to ₹32,850 crore in FY 2025–26, registering an increase of over 100% in just two fiscal years, according to data from the state Directorate of Economics and Statistics.

For the first time since Telangana was carved out as an independent state in 2014, the aerospace and defence sector has overtaken pharmaceuticals to claim the top share in the state's merchandise export basket. Aerospace and defence goods accounted for 33.4% of Telangana’s total exports, surpassing pharmaceutical exports, which contributed roughly 25% (around ₹24,000 crore) of total outbound shipments.

Drivers Behind the Aerospace Surge

The dramatic export acceleration stems from long-term capacity building, dedicated aerospace Special Economic Zones (SEZs), and major original equipment manufacturer (OEM) joint ventures established around Hyderabad.

Key pillars fueling the export footprint include:

• Global Aerostructure Hub: Hyderabad has emerged as the world's sole manufacturing source for fuselages of the Boeing AH-64 Apache attack helicopter via Tata Boeing Aerospace Limited (TBAL) at Adibatla, having delivered over 300 fuselages globally, in addition to critical aerostructures for CH-47 Chinook helicopters and Boeing 737 aircraft.
• Aero-Engine & MRO Ecosystem: High-value facilities, such as the Tata–Safran aero-engine unit and Safran Aircraft Engine Services India’s ₹1,300-crore Maintenance, Repair, and Overhaul (MRO) center for LEAP engines at GMR Aerospace Park, are ramping up local assembly and overhaul capability.
• Vibrant MSME & Start-up Base: Over 1,500 Micro, Small, and Medium Enterprises (MSMEs) in Telangana now act as tier-1 and tier-2 precision engineering suppliers to global prime contractors like Airbus, Boeing, GE Aviation, and Lockheed Martin.
• New-Age Space & UAV Pipeline: Private space and drone pioneers like Skyroot Aerospace, Dhruva Space, Azad Engineering, and incoming facilities such as JSW Defence's ₹800-crore UAV plant have diversified outbound high-tech shipments.

Policy Backing and Economic Outlook

Telangana's IT and Industries Ministry confirmed that the state has secured ₹4,200 crore in fresh aerospace and defence investments since January 2024, with another ₹12,500 crore worth of projects in the pipeline. The state government operates five dedicated aerospace and defence parks across Adibatla, Shamshabad, and Maheshwaram, with plans underway to establish additional specialized clusters.

The shift reflects broader national trends under the Make in India initiative and Atmanirbhar Bharat reforms, where import duty rationalisations, streamlined offset policies, and expanding procurement budgets have propelled India's annual defence production past ₹1.5 lakh crore.

With state authorities targeting 1.25 lakh additional direct aerospace jobs and positioning Hyderabad to become India's primary aero-engine capital by 2030, the rapid outperformance of aerospace exports marks a structural transformation in India's advanced manufacturing capabilities.

Tags: Tata Advanced Systems Boeing Safran Skyroot Aerospace Aerospace and Defence Ministry of Defence