Tuesday, February 10, 2026
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Andhra Pradesh to Build Space City and Defence Hubs with ₹3,400 Crore Investment

Andhra Pradesh is taking major steps to become a key player in India’s space and defence sectors. The State government has announced plans to set up a modern Space City in Tirupati and two defence manufacturing hubs in Madakasira. These projects together will see an investment of around ₹3,400 crore and are expected to drive innovation and growth in the region.

The Tirupati Space City will be developed in collaboration with Hyderabad-based Skyroot Aerospace, a company founded by former ISRO scientists. With an investment of ₹400 crore, the facility will focus on private satellite launches and affordable small launch vehicles. Tirupati’s location, close to ISRO’s Propulsion Complex, makes it ideal for integrated launch operations and for supporting India’s growing presence in the global space industry.

Meanwhile, the Madakasira region will host two large defence manufacturing hubs with a combined investment of ₹3,000 crore. These hubs will specialize in making aerospace parts, defence electronics, and weapons systems. The initiative is expected to create thousands of jobs, attract participation from MSMEs, and encourage partnerships with global defence companies.

Chief Minister N. Chandrababu Naidu said the projects will help the state use science and technology to boost economic growth and support India’s Aatmanirbhar Bharat mission. The government aims to attract foreign investment, grow exports, and build a strong ecosystem of startups, research centres, and advanced manufacturing units, positioning Andhra Pradesh as a leader in space and defence innovation.

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