The story
Hindustan Aeronautics Limited (HAL), ISRO and DRDO laboratories made Bengaluru India's aerospace centre from the 1940s onward. Around them grew hundreds of small machine shops that supply parts and sub-assemblies. Global firms such as Boeing and Airbus later set up research and engineering centres here. The state government reserved land for an aerospace park and SEZ near Kempegowda International Airport.
In numbers
Karnataka produces more than a quarter of India's aircraft and spacecraft; the state earmarked 984 acres of exclusive industrial area and an aerospace SEZ near Bangalore International Airport.
Karnataka State Industrial Profile 2015-16 (MSME-DI Bengaluru, DC-MSME) · 2016In June 2025 the Karnataka government said the state contributes around 60% to 65% of national aerospace manufacturing and exports.
Karnataka: state profile (IBEF) · 2026
Ways in for a newcomer
- Become a vendor for machined parts, sheet metal or tooling to HAL and its tier-1 suppliers
- Offer heat treatment, NDT testing or surface coating services
- Start a drone assembly or drone services firm
- Provide engineering design and documentation services
Problems the cluster faces
- AS9100 quality certification is costly and slow
- Long payment and approval cycles with defence buyers
- Need for costly CNC machines and skilled machinists
- Orders depend on government defence budgets
Businesses to start here
Precision Sheet Metal Fabrication (Job Shop) →Investment Casting (Lost Wax Process) →Drone Assembly Unit →Drone Servicing and Repair Centre →