Assam is preparing to establish a major Defence Park spanning approximately 3,750 acres at Nelli in Morigaon district, marking a significant step in the state's efforts to emerge as a new centre for defence and aerospace manufacturing, news agencies reported.

The decision was approved by the State Cabinet at a meeting chaired by Chief Minister Himanta Biswa Sarma at Lok Sewa Bhawan on 3 November. Under the proposal, the Industries Department will receive around 3,750 acres of land near Jagiroad for the development of the project.

The initiative reflects Assam's broader push to strengthen its industrial base and attract investment into advanced manufacturing sectors. While other regions of India have already developed substantial defence production ecosystems, including facilities manufacturing sophisticated missile systems, military platforms and aviation equipment, Assam has historically had a limited presence in the sector.

In recent years, however, the state has pursued investments in strategically important industries, including semiconductors and other high-value manufacturing segments. Despite these advances, the lack of a dedicated large-scale industrial land bank has been viewed as a constraint in attracting major defence manufacturers and related supply-chain partners.

The proposed Defence Park is intended to bridge that gap while supporting the national objective of 'Atmanirbhar Bharat'. By creating a specialised industrial ecosystem for defence and aerospace industries, the project is expected to improve Assam's attractiveness as an investment destination for both domestic and international companies.

To promote the opportunity, the state government plans to organise roadshows and undertake targeted investment outreach activities aimed at highlighting Assam's industrial capabilities, infrastructure development and business potential.

A key factor supporting the initiative is the Assam Aerospace and Defence Manufacturing Policy, 2025, which was notified on 23 February 2025. The policy, which remains in force for five years from its publication in the Official Gazette, is designed to position Assam as a globally competitive destination for aerospace and defence manufacturing.

Its scope covers a broad spectrum of activities, including aircraft manufacturing, advanced defence equipment production, small arms and ammunition, unmanned aerial vehicles and drones, avionics, simulation technologies, Maintenance, Repair and Overhaul services, defence research and development, as well as defence-focused Start-Ups and Micro, Small and Medium Enterprises.

To encourage industrial investment, the policy provides a range of incentives and support mechanisms. These include capital investment subsidies, reimbursement of the state's share of GST, transport and power-related assistance, land allotment subsidies, research and development support, and production-linked incentives, subject to prescribed terms and conditions.

Together, the Aerospace and Defence Manufacturing Policy and the proposed Defence Park are expected to create a strong platform for attracting leading defence and aerospace companies to Assam. 

The initiative is anticipated to strengthen the state's industrial ecosystem, generate substantial employment opportunities and contribute to long-term economic growth.

The project is also expected to create new opportunities for Assam's youth by encouraging skill development, manufacturing employment and participation in high-technology industries, helping position the state as an emerging player within India's rapidly expanding defence and aerospace manufacturing landscape.

Agencies