While the Advantage Assam 2.0 summit set the foundation, it is now imperative for the state to move beyond planning and take concrete steps toward making Assam a major player in India’s defence sector
The recently-concluded Advantage Assam 2.0 investment summit resulted in promises of Rs. 4.91 lakh crore in various sectors. One of the most crucial sectors highlighted was defence manufacturing, yet the extent of actual investment remains uncertain. Despite the emphasis on defence, a major concern is the absence of definitive commitments from leading defence industry players. According to a defence source speaking anonymously, the Union Defence Minister’s absence at the summit suggests that the defence corridor is still in a preliminary stage rather than a concrete plan. While memorandums of understanding (MoUs) were signed with defence startups, no significant foreign players, such as those involved in the Uttar Pradesh Defence Corridor, participated.
Assam’s EV Policy Still Not Fully Implemented
One of the key recommendations from the defence industry is to establish a dedicated core team to steer the initiative. According to industry insiders, this team should not solely comprise IAS and ACS bureaucrats, but must also include army officials on deputation with prior experience in defence manufacturing. Additionally, retired military personnel could be valuable assets in guiding the corridor’s strategy. To ensure the corridor's success, the core team should undertake visits to existing defence corridors in Uttar Pradesh and Karnataka, learn from their experience, and develop an effective framework for liaising with the Ministry of Defence (MoD) and international defence manufacturers.
A major step toward the success of Assam’s defence corridor would be securing a tripartite memorandum of understanding (MoU) between the Assam state government, the Ministry of Defence (MoD), and an international defence manufacturing country. This would ensure that all defence-related products manufactured in the corridor are procured by the MoD. The proposal must be submitted to the Ministry of Defence for approval, after which the MoD, Assam government, and a foreign defence manufacturing country would collaborate to establish the necessary infrastructure.
For a defence industrial corridor to be effective, the state must provide strategically located land, investment incentives, technological collaboration, and skilled workforce development. Assam has land in every district, but precise locations need to be finalised. The government must offer tax benefits and infrastructure support to attract investors. Partnerships with countries that have advanced defence technology will be crucial. Establishing training centres and technical institutions to create an employable workforce is another necessary step.
Currently, India has two defence corridors: Uttar Pradesh Defence Industrial Corridor, which includes six nodes in Aligarh, Agra, Chitrakoot, Jhansi, Kanpur, and Lucknow, and Tamil Nadu Defence Industrial Corridor, which includes five nodes in Chennai, Coimbatore, Hosur, Salem, and Tiruchirappalli. These corridors were strategically chosen based on their existing ecosystem for aerospace and defence manufacturing. Assam must follow a similar approach in identifying nodes that align with existing industrial infrastructure and logistical advantages.
A positive step in the right direction is Assam’s newly drafted Defence Policy, which is expected to provide clarity on investment opportunities and infrastructure requirements. According to an official from the Industry and Commerce department, the government is still in the process of identifying the most suitable locations for setting up defence manufacturing units. Air Chief Marshal (Retd.) Rakesh Kumar Singh Bhadauria, talking to GPlus, expressed optimism about Assam’s potential in defence manufacturing. He emphasised that although no major foreign defence industries participated in Advantage Assam 2.0, the summit succeeded in creating an ecosystem for future investments.
Dr. Sarag Saikia, Managing Director and Chief Technologist of Spacefaring Technologies Private Limited, announced his company’s commitment to invest Rs. 100 crore in Assam. His company specialises in Radome manufacturing—a key defence technology that protects radar equipment using radio-wave transparent materials. Saikia revealed that the state government will allot land for his company’s manufacturing unit within the next few months.
A session in progress at Advantage Assam 2.0.
Despite the promising outlook, several challenges must be addressed. The defence corridor requires clear government directives and streamlined bureaucratic processes. Without the participation of major defence manufacturers, the corridor might struggle to gain momentum. The Ministry of Defence’s approval and commitment to procurement are essential for success. Assam needs better logistics, transport connectivity, and power supply to support large-scale defence manufacturing. Given Assam’s strategic location, ensuring the security of defence manufacturing units will be critical.
For Assam’s defence corridor to be realised, the following immediate actions should be taken: formation of a core defence team, identification of suitable land parcels, policy framework finalisation, international collaborations, infrastructure development, and skill development initiatives. Assam’s ambition to establish a defence manufacturing corridor presents a significant opportunity for economic growth and strategic defence development.
However, the success of this initiative will depend on effective policy implementation, attracting key investors, and strong coordination with the Ministry of Defence. While the Advantage Assam 2.0 summit set the foundation, it is now imperative for the state to move beyond planning and take concrete steps toward making Assam a major player in India’s defence sector.